# How do we calculate Arrived Valuations?

Written by Korin Hedlund  
April 27, 2026

Starting **12 months after the property’s initial offering**, Arrived updates the valuation for each property **every quarter** using the following inputs:

## Property value estimates

We estimate property values using different methodologies depending on the property type and available market data.

For **single family rentals**, we use a **comparable sales-based valuation**, which estimates value based on recent sales of similar homes in the same market.

For **vacation rentals**, we may use either:

- **Comparable sales-based valuation**  
- **Income-based valuation using investor cap rates**

The income-based methodology may be used when a vacation rental’s value is more closely tied to its rental income than nearby home sales. As of Q2 2026, income-based valuations are calculated using the property’s prior 24 months of income, which helps smooth out short-term fluctuations and provide a more stable view of property value.

You can also track property values as a metric on your [Portfolio Page.](https://arrived.com/app/account/portfolio/overview)

## Manual data review

Arrived’s Investments team manually reviews valuation data each quarter to remove outliers, correct anomalies, and ensure consistency across properties and markets.

## LLC balance sheet updates

Arrived Valuation also factors in:

- **Cash reserves**  
- **Outstanding liabilities** (e.g., loan balances, accrued taxes)  
- **Asset updates** related to operational income and expenses

## Customized amortization of expenses

Upfront expenses—like closing costs, renovations, and furnishings—are amortized based on their actual useful life. For example:

- A **new roof** may be amortized over 15–20 years  
- A **furniture package** may be amortized over a 5-year period.

This schedule replaces our previous flat 5-year approach and aligns more closely with how institutional real estate portfolios manage costs.

## Disposition costs removed

Previously, we have included estimated disposition costs—such as agent commissions and closing fees, to reflect the potential net proceeds if a home were sold. However, investors told us that this approach was confusing and did not align with how they think about current value.

So we’ve updated our methodology: Arrived Valuation now reflects the property's estimated value before any sales-related costs. This change provides a clearer picture of what your investment is worth today, without relying on assumptions about potential future sales.

We will continue to work on reducing exit costs; however, they no longer impact your current valuation.

## Hold period assumptions (for future properties)

While this doesn’t change the Arrived Valuation math today, it influences how we plan future investments:

- **Financed properties:** estimated hold aligns with mortgage fixed-rate terms (5, 7, or 10 years)  
- **Unfinanced properties:** estimated hold = 5–15 years  
- **Fund portfolios:** estimated hold = 5–20 years

To learn more about Arrived Valuation, check out the resource below:

- [What is Arrived Valuation](https://help.arrived.com/en/articles/6424667-what-are-share-prices)?  
- [What does it mean if my Arrived Valuation is down?](https://help.arrived.com/en/articles/6909390-what-does-it-mean-if-my-share-price-is-down)  
- [Deeper dive into Arrived Valuation](https://arrived.com/blog/property-share-prices)  
- [How is Arrived Valuation different for Vacation Rentals?](https://help.arrived.com/en/articles/8875837-how-are-vacation-rental-share-prices-different)

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