A budget analysis was developed which would aid in the evaluation of proposed rental apartments in rural areas. The analysis used average construction and operating costs computed from data obtained from FmHA on existing rural rental units in western Oklahoma. Average construction costs per apartment were found to be $12,711 and $11,634 for a fourplex and low-rise structure, respectively. Average annual operating expenses were $463 and $438 per apartment, respectively without utilities furnished. Furnishing utilities added approximately $400 per apartment to annual operating costs. These average costs are used in the budget analysis to estimate required capital and operating expenses. Accounting profits are estimated by subtracting expenses from estimated receipts. Alternative apartment sizes, types of structure, and rental rates are evaluated using the budget analysis. Blank budget forms are provided. Managerial strategies of existing rural rental apartments and guidelines for measuring demand are discussed.