How is Confidence Score calculated

Confidence Score is a metric that helps you understand how precise your projected revenue estimate is within Rentalizer. It measures how consistent the revenue figures are across the comparable properties (comps) used in the calculation.

The Confidence Score looks at the variance across the revenue of your comps. If all comps have similar revenue, the score will be high, indicating strong alignment and reliability in the projection. However, if there is a wide range of revenue values (e.g., one comp earns $100K while another earns $25K), the variance is high, leading to a lower Confidence Score.

A lower Confidence Score does not mean the data is inaccurate—it means that the selected comps vary significantly, and you should review them to ensure they align with your property.

Right now, comps are automatically selected, but soon, you’ll be able to customize your comp set. This will allow you to refine your comps and improve the Confidence Score by choosing properties that better match your own.

Confidence Score helps you make informed investment decisions by highlighting how well your selected comps support the revenue estimate. A higher Confidence Score suggests a more precise projection, while a lower score signals that you may need to review and refine your comp set (once custom comps become available).

By paying attention to the Confidence Score, you ensure that the revenue projections are based on the most relevant and accurate comps possible.