Optimizing rents with WDSuite's tenant credit insights

As multifamily owners and operators seek smart, data-backed strategies to boost revenue, rent optimization has emerged as a key lever. However, raising rents without understanding tenant financial capacity can lead to higher vacancies, slower leasing, and unnecessary risk.

WDSuite solves this challenge with its integrated tenant credit insights, empowering owners to set rent bands that reflect market trends and tenants’ actual ability to pay. Here's how to use it.

1. Establish the income baseline

Start by gathering household income data. WDSuite allows you to use the Median Household Income metric from the Neighborhood Map to understand typical income levels for the area.  You can then supplement with self-reported income from tenant applications when available.

This sets a realistic top-line limit for what households in your property or submarket can afford, which is critical for responsible rent setting.

2. Quantify tenants’ monthly debt service

Navigate to the Tenant tab in WDSuite and locate the Monthly Debt Payment metric. This data aggregates all known debt obligations at the property level and benchmarks them against both the neighborhood and the metro.

You can:

• Use the weighted average of all debt payments to understand your tenants’ debt burden.
• Drill down by debt type, toggling between loans (i.e. auto and student loans), and bank card payments. Bank card data reflects minimum monthly payments, not total balances, giving you a realistic sense of their cash flow obligations.

This gives you a clear view of how leveraged your tenants are so that you can adjust your pricing to accommodate risk.

3. Incorporate local cost-of-living factors

To estimate how much of your tenants’ income is already spoken for, factor in local living expenses using publicly available budget weights. For example:

• Groceries: 10–15 percent
• Utilities: 5–10 percent
• Transportation: 10–15 percent

Local or metro-level consumer expenditure surveys can provide more precise weights. Applying these helps model a typical household budget.

4. Calculate discretionary income headroom

With income, debt, and essential costs defined, calculate how much cash is left over using the following formula:

Discretionary Income = Median Income – Monthly Debt – (Cost-of-Living Percentage × Median Income)

This represents the maximum headroom tenants have for housing before they begin to overextend their finances. It’s a guardrail that protects your property’s stability and your tenants’ solvency.

5. Derive a risk-adjusted rent band

Industry norms suggest tenants should spend no more than 30% of gross income on rent. WDSuite lets you go deeper by adjusting that rule of thumb based on:

• Real tenant debt levels
• Median incomes in your neighborhood
• Local cost pressures

By aligning proposed rents to discretionary income, you avoid overpricing units and improve tenant retention without leaving revenue on the table.

6. Monitor and iterate

WDSuite’s tenant credit data updates monthly, allowing you to adjust strategies as market and tenant dynamics shift. Revisit the data regularly to track:

• Increases in tenant debt levels
• Changes in neighborhood income profiles
• Shifts in discretionary income

Use these trends to stay agile and forward-looking in your rent strategy.

7. Communicate value, not just cost

When rolling out rent increases, align them with clear value enhancements, such as:

• Upgraded appliances or finishes
• Enhanced amenity access
• Security improvements

Position rent changes as investments in resident experience rather than just price hikes. Messaging matters, especially in competitive leasing environments.

WDSuite: Your best tool for tenant credit insights

WDSuite’s tenant credit insights offer multifamily owners a smarter way to optimize rents without guesswork. By balancing local income, tenant debt, and cost-of-living realities, you can set rent bands that maximize revenue while preserving resident stability.

In a high-stakes market, data like this is a significant competitive advantage for risk-adjusted rent pricing. Try out WDSuite today.