The rent appreciation rate is the annual percentage increase in rental income a property can generate. It reflects how much rent is expected to grow year over year based on market demand, local wages, and housing supply. For investors, this rate helps forecast long-term cash flow and return on investment. Even a modest 2–3% annual increase can significantly boost income over time. Meridian factors rent appreciation into our projections so buyers can plan for rising revenue alongside expenses. In strong rental markets like the Memphis suburbs, consistent rent growth is a key advantage of buy-and-hold investing.