Last updated: November 8, 2026
Key takeaways
- Net effective rent is the average monthly rent after a move-in special: total rent owed over the lease, minus the free rent, divided by the number of months.
- One month free on a 12-month lease at $2,500 a month works out to a net effective rent of about $2,292, a saving of $2,500 over the year.
- Renewal offers are usually priced from the base (gross) rent, not the net effective rent, so the second-year increase can look much bigger than expected.
- In June 2026, 23.3% of Chicago rental listings on Zillow offered a concession, compared with 39.7% nationally, while Chicago’s typical asking rent rose 5.2% to $2,275.
- Many Chicago buildings charge a non-refundable move-in fee instead of a security deposit; security deposits are governed by Chicago’s Residential Landlord and Tenant Ordinance.
Net effective rent is what a Chicago apartment really costs per month once a move-in special is counted. Landlords often advertise it instead of the base rent, so knowing how to calculate it is the easiest way to compare specials such as “1 month free” or “6 weeks free” across buildings. This guide shows the formula, worked examples, and what to ask before you sign. For current offers, see every Chicago move-in special or browse by neighborhood.
What is net effective rent?
Net effective rent is the base monthly rent averaged over the whole lease after subtracting any free rent or rent credit. If a building charges $2,500 a month and gives one month free on a 12-month lease, you pay $27,500 over the year instead of $30,000, so the net effective rent is $27,500 ÷ 12 ≈ $2,292 a month. The base rent on the lease is still $2,500.
How do you calculate net effective rent?
Net effective rent = (base rent × lease months − value of the special) ÷ lease months.
Convert weeks of free rent to dollars first: weeks free ÷ 4.33 × base rent. Six weeks free at $2,500 is about 6 ÷ 4.33 × $2,500 ≈ $3,464. Add any dollar rent credit to that value. Waived fees (application, admin or amenity fees) lower your move-in cost but are usually not counted in net effective rent.
Examples: the same apartment on different leases
All examples use a $2,500-a-month base rent.
| Lease | Special | Value of special | Total rent paid | Net effective rent |
|---|---|---|---|---|
| 12 months | 1 month free | $2,500 | $27,500 | $2,292 |
| 13 months | 1 month free | $2,500 | $30,000 | $2,308 |
| 15 months | 6 weeks free | ≈$3,464 | ≈$34,036 | ≈$2,269 |
| 24 months | 2 months free | $5,000 | $55,000 | $2,292 |
A longer lease with a bigger special can cost about the same per month as a shorter lease with a smaller one. Compare net effective rent, not the size of the headline.
How are free months applied?
Chicago buildings usually apply free rent in one of two ways. Some take it off upfront, so the first month (or first several weeks) is free and you pay full base rent after that. Others spread it across the lease, so every monthly bill is lower and equals the net effective rent. The total saving is the same, but the first approach keeps your monthly payment at base rent, which matters for budgeting. Ask the leasing office which method the building uses and get it written into the lease.
Why does my renewal look so much higher?
Renewal offers are usually based on the base (gross) rent, and the move-in special normally does not repeat. If you signed at a net effective rent of $2,292 with a base rent of $2,500, a 3% renewal increase is calculated on $2,500, so your new rent would be about $2,575. That is roughly 12% more than you averaged in the first year. Under Chicago’s Residential Landlord and Tenant Ordinance, landlords must give advance written notice of a rent increase or non-renewal: 60 days for tenants who have lived in the unit more than six months but less than three years, and 120 days for tenants of three years or more.
Move-in fee or security deposit?
Many large Chicago apartment buildings charge a one-time, non-refundable move-in fee instead of a security deposit. A security deposit is refundable and is covered by the Residential Landlord and Tenant Ordinance, which sets rules on receipts, interest and returning the deposit after you move out. Our guide to Chicago move-in fees and security deposits covers the 45-day return rule, late-fee caps and the 2026 Illinois fee law. A move-in fee is not refunded. Some move-in specials waive the move-in fee or application fee, which lowers what you pay upfront but not your monthly rent.
How common are move-in specials in Chicago?
Concessions are less common in Chicago than nationally. In Zillow’s June 2026 rental report, 23.3% of Chicago-area rental listings offered a concession, up 2.7 percentage points from May, while Chicago’s typical asking rent rose 5.2% from a year earlier to $2,275. Nationally, 39.7% of listings offered a concession, up from 35.2% a year earlier. Specials are concentrated in newer high-rises and buildings still leasing up, which is why downtown neighborhoods dominate the Chicago Move In Specials list.
What should you ask before signing?
- Is the advertised price the base rent or the net effective rent?
- Is free rent taken off upfront or spread across the lease?
- Which apartments and lease lengths qualify, and what is the deadline?
- What are the required monthly fees (amenity, parking, utilities, trash)?
- Is there a move-in fee or a security deposit, and how much?
- What happens to the special if I break the lease early?
Net effective rent: FAQ
What does net effective rent mean in Chicago apartment listings?
Net effective rent is the average monthly rent after a move-in special is spread across the lease. A $2,500 apartment with one month free on a 12-month lease has a net effective rent of about $2,292. Chicago listings often advertise the net effective figure, so ask the leasing office for the base rent that appears on the lease and is used for renewals.
Is one month free better than a lower rent?
One month free on a 12-month lease is worth the same as a rent about 8.3% lower for the year. The difference shows up at renewal: a lower base rent keeps future increases smaller, while free rent usually does not repeat and the renewal is priced from the higher base rent. If you plan to stay more than one year, a lower base rent is usually worth more.
How do I convert weeks free to dollars?
Divide the weeks free by 4.33, the average number of weeks in a month, and multiply by the base monthly rent. Six weeks free at $2,500 a month is about 6 ÷ 4.33 × $2,500, or roughly $3,464. Add any dollar rent credit to get the total value of the special, then subtract it from the full lease cost to find net effective rent.
Does a longer lease get a bigger move-in special?
Often, yes. Many Chicago buildings offer more free rent on 13- to 18-month or 24-month leases than on 12-month leases. A bigger special on a longer lease is not always cheaper per month, so compare net effective rent. For example, 2 months free on a 24-month lease and 1 month free on a 12-month lease both work out to about $2,292 on a $2,500 apartment.
Why is my renewal rent higher than what I was paying?
Renewals are normally based on the base rent on your lease, not the lower net effective rent you averaged with the special. If your base rent is $2,500 and you averaged $2,292, a 3% increase raises your rent to about $2,575, roughly 12% above your first-year average. Chicago landlords must give 60 or 120 days’ written notice of an increase, depending on how long you have lived there.
Is a move-in fee the same as a security deposit in Chicago?
No. A move-in fee is a one-time, non-refundable charge, while a security deposit is refundable and covered by Chicago’s Residential Landlord and Tenant Ordinance, which sets rules on receipts, interest and returning the deposit. Many large Chicago buildings charge a move-in fee instead of a deposit, and some move-in specials waive it.
Sources
This guide is general information, not legal or financial advice. Confirm terms with the building and read your lease before signing. Corrections: joe.bjorklund@bairdwarner.com.