In economics, occupancy, specifically economic occupancy, is a measure of the success of a rental property by evaluating how much rent is collected compared to the theoretical maximum rent that could be collected. This theoretical maximum is determined by multiplying the market rate by the total number of units in the property. Economic occupancy provides insight into the financial performance and profitability of a property, considering factors such as rent discounts, vacancies, and tenants paying below the market rate. By comparing actual rental income to potential rental income, property owners and managers can assess how effectively their property is generating revenue and identify areas for improvement to maximize financial returns.