Self Storage Underwriting Calculator
Convert self storage unit count, rent, and occupancy into revenue, NOI, value per unit, maximum loan proceeds, and required equity.
Request a financing review when you are ready to share the property, requested proceeds, and timeline.
How Self Storage Per Unit Underwriting Works
The calculator multiplies total units by average monthly rent to estimate gross potential rent, then applies economic occupancy and adds other revenue. The operating expense ratio is deducted to estimate stabilized net operating income.
Gross Potential Rent = Units × Monthly Rent × 12
Effective Rental Revenue = Gross Potential Rent × Economic Occupancy
Stabilized NOI = Total Revenue × (1 - Operating Expense Ratio)
Self Storage Value and Loan Sizing
Indicated value is calculated from stabilized NOI and the selected capitalization rate. Maximum loan proceeds use the lower of the DSCR limit and loan to value limit. Per unit results make it easier to compare the subject property with sales, appraisals, and competing facilities.
Self Storage Underwriting Worked Example
A 500 unit facility averaging $125 per month at 90 percent economic occupancy produces $675,000 of effective rental revenue. Adding $45,000 of annual other revenue and applying a 38 percent operating expense ratio produces $446,400 of stabilized NOI, or $893 per unit before loan sizing.
Choosing Self Storage Inputs and Reading the Result
Use economic occupancy, which reflects concessions and collection loss, rather than physical occupancy alone. Base average rent on the occupied unit mix and include administration, insurance, truck rental, late fees, and merchandise only when supported by operating history. Compare the indicated value per unit with recent local sales, and treat maximum loan proceeds as the lower of the income and leverage limits rather than an approval.
Frequently Asked Questions
Should I use physical or economic occupancy for self storage?
Use economic occupancy when possible because it reflects concessions, discounts, and collection loss. A facility can be physically full while collecting less than its scheduled rent.
What other income belongs in self storage underwriting?
Include recurring income supported by operations, such as administration fees, tenant insurance commissions, late fees, truck rental, and merchandise sales. Do not include one time income or assume new revenue without support.
Why is self storage value per unit useful?
Value per unit helps compare the subject with nearby sales and appraisals, but differences in unit size, climate control, location, age, and operations still require adjustment.