Setting the right price for a room in your home is part art, part science. Price too high, and you risk sitting vacant. Price too low, and you’re leaving money on the table—or attracting applicants who may not be the right fit. The goal is to land on a number that’s competitive in your local market, covers your expenses, and fairly reflects what you’re offering.
Start with the market, not guesswork
The most reliable way to price a room is to look at comparable listings nearby. Search sites like Zillow, Craigslist, Roomster, or Facebook housing groups and filter for properties similar in size, features, and neighborhood. If most private rooms in your area list for $900–$1,100, that range gives you an anchor point.
The formula approach
Another way to double-check your number is to run it through a property value lens.
A common rule of thumb is that a property can rent for about 0.8%–1.1% of its value per month in many mid-range housing markets. In high-cost cities, returns may be lower, so you’ll still want to cross-check with local market comps. For example, a $400,000 home might rent for $4,000 a month if leased as a whole property. Divide that by the number of bedrooms, then adjust based on upgrades, private bathrooms, furnishings, or included utilities.
Factor in features and amenities
Not all rooms are equal. A private entrance, an en suite bathroom, or a furnished setup will justify a higher price. Including Wi-Fi, electricity, and water in the rent makes the listing more appealing, but you’ll want to build those costs into your number. On the flip side, if the room is dated or the tenant will share a single bathroom with multiple people, your price should be on the lower end.
Real example: Pricing a room in Chicago
In Chicago, private room rentals typically fall between $650 and $1,200 per month, depending on the neighborhood and amenities. Suppose you own a $400,000 home in Logan Square with four bedrooms. Using the property value method, the full home might rent for ~$4,000 a month, or about $1,000 per room.
If the room you’re renting has a private bathroom and is fully furnished, you could add $150–$200 on top of that base. Market comps in Logan Square confirm similar rooms list for $1,100–$1,200 with utilities included. That puts your ideal price in the $1,150 range—competitive with the local market, while still profitable.
Beyond the numbers
Pricing isn’t just about rent. It’s about the kind of tenant you want and the lifestyle you’re offering. If you live in the home, you may price slightly higher to balance the trade-off of sharing your space. If demand in your city is soft, you might knock off $50–$100 to rent faster.