Acme Development Company is considering building a twenty-five (25) unit apartment building near Catholic University due to the demand for off-campus student housing. Given the unique needs of the student population, Acme anticipates they will achieve 75% occupancy over the course of a year. Acme is basing their decision on the following assumptions:

? MARR: 15%

? Land Acquisition: $150,000

? Construction Cost: $2,250,000

? Investment Period: 20-years

? Maintenance Expenses: Years 1 to 10: $500 per unit Years 11 to 20: $1,000 per unit

? Property Taxes/Insurance: 10% of total invested cost

Determine the break-even rent that should be charged per month for each apartment.