Rent-to-price ratio: a screening tool, not a net return
Rent-to-price ratio divides evidenced annual rent by a clearly defined purchase price or market value. Label the denominator because a ratio based on acquisition price answers a different question from one based on current value.
Align date and currency
Do not compare today’s rent with an old price or mix TRY income with a foreign-currency asset value without stating the exchange rate and date. Prefer contracted rent or a supported comparable range and distinguish asking rent from collected rent.
Move from gross ratio to cash flow
The ratio does not deduct vacancy, common charges, maintenance, tax, insurance, financing or entry/exit costs. Use it to screen opportunities, then move to NOI, cash-on-cash return and an explicit exit scenario.
2026 analytical update — Rent-to-Price Ratio Guide
Keep numerator and denominator on the same date and currency. State whether the denominator is purchase price or current market value, and use contracted rent or a supported comparable range rather than treating an asking rent as collectible income.
The latest available CBRT Residential Property Price Index and New Tenant Rent Index release is July 2026. Use the indices for market direction, not as a valuation of a specific unit; the asset still requires current like-for-like comparables.
Formula / check: Rent-to-price ratio = annualized evidenced rent / stated property price or total acquisition basis.