Rent price relative to owning?

[Peter Burnside]

Is there a logic to pricing rent relative to the cost of paying a mortgage on the property if someone were to buy it at today's rates?

Ex. my current properties rent for about 112% of what someone would pay in a mortgage payment with 20% down if they bought the property now. (of course, my payment is much lower than someone would pay now, because I've held these a while)  Just wondering if anyone uses a rule like this in determining rent (in an area where there are few comps).

[John Clark]

Quote from @Peter Burnside:

Just wondering if anyone uses a rule like this in determining rent (in an area where there are few comps).

 First, the market determines the rent. Your expenses are irrelevant. "High cost producers" go bankrupt.

Second, look at the TOTALITY of your investment and expenses (including risk) and see if the return on investment (and expenses) is greater than it is for alternative investments. Factor in odds of appreciation/depreciation of asset price from owning. Personally, I disregard tax advantages from owning since tax laws can always changes.

Third, decide accordingly.