Editing Imputed rent (section)

==Measurement==
There are two common approaches to estimating imputed rents for housing: the "comparison approach" and the "user cost of capital" approach. 

===Comparison approach===
The comparison approach matches rents in tenant-occupied housing units to similar owner-occupied housing units. If the units are identical, the owner-occupant's imputed rent is the cost they avoid in renting the other unit. 

In the United States, the [[Bureau of Labor Statistics]] uses a version of this approach to estimate changes in the price of owner-occupied housing.<ref>{{cite web |title = Measuring Price Change in the CPI: Rent and Rental Equivalence |url=https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.htm |accessdate=6 October 2023 |date= 8 September 2023 |website = U.S. Bureau of Labor Statistics}}</ref>

===User cost of capital approach===
The user cost approach identifies costs unrecoverable by the owner. These can be defined as:

<math>R = (i + r_p + m + d)P_H </math>

Where {{math|{{var|i}}}} is the interest rate, {{math|{{var|r}}{{sub|{{var|p}}}}}} is the property tax rate, {{math|{{var|m}}}} is the cost of maintenance, and {{math|{{var|d}}}} is depreciation. The rent is the sum of these rates multiplied by the price of the house,<ref>{{cite journal |last=Poterba |first=James |title=Taxation and Housing: Old Questions, New Answers |journal=American Economic Review |year=1992 |volume=82 |issue=2 |url=https://www.nber.org/system/files/working_papers/w3963/w3963.pdf}}</ref> {{math|{{var|P}}{{sub|{{var|H}}}}}}. More detailed user cost models consider differential interest costs for housing debt and owner equity and the tax treatment of housing capital income.<ref>{{cite journal |last1=Poterba |first1=James |last2=Sinai |first2=Todd |title=Tax Expenditures for Owner-Occupied Housing: Deductions for Property Taxes and Mortgage Interest and the Exclusion of Imputed Rental Income |journal=American Economic Review |year=2008 |volume =98 |issue=2 |pages=84–89 |doi=10.1257/aer.98.2.84 |jstor=29730000 |url=https://www.jstor.org/stable/pdf/29730000.pdf}}</ref>