Zillow estimates rent prices by pulling information from public property data and comparing the rental listings of similar properties in the area, explains the company's official website. There may be variations in the rental price because of special features, locations or lease negotiations.Continue Reading
Zillow has created a proprietary algorithm that considers similar apartments in a certain area and looks at the relationship between the rent prices and the details of the various homes. The relationships between the properties form patterns, and Zillow uses the patterns develop a model that estimates rental costs, notes the real estate information website.
The rent estimate that Zillow provides shows the high and low estimates for which a home or an apartment could rent. When Zillow calculates its estimate, it takes into account the geographical area of the rental unit and the rental rates of similar units in that particular area. The more rental listings the company has, the more data it has to work with and the more accurate the rent estimates are, Zillow reports.
Zillow also has an online chart that allows users to view historic rent estimates. With this chart, users can see how a home or apartment's rent has changed over the years, explains Zillow.Learn more about Finding a Home