diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2cd8eb5e8..bb24017bc 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,7 @@ v2.6.5 (FUTURE)
 
 ## Enhancements
 
+* [#3297](https://github.com/netbox-community/netbox/issues/3297) -  Include reserved units when calculating rack utilization
 * [#3347](https://github.com/netbox-community/netbox/issues/3347) -  Extend upgrade script to automatically remove stale content types
 * [#3352](https://github.com/netbox-community/netbox/issues/3352) -  Enable filtering changelog API by `changed_object_id`
 * [#3524](https://github.com/netbox-community/netbox/issues/3524) -  Enable bulk editing of power outlet/power port associations
diff --git a/netbox/dcim/models.py b/netbox/dcim/models.py
index 302056edc..5ffd15842 100644
--- a/netbox/dcim/models.py
+++ b/netbox/dcim/models.py
@@ -732,10 +732,21 @@ class Rack(ChangeLoggedModel, CustomFieldModel):
 
     def get_utilization(self):
         """
-        Determine the utilization rate of the rack and return it as a percentage.
+        Determine the utilization rate of the rack and return it as a percentage. Occupied and reserved units both count
+        as utilized.
         """
-        u_available = len(self.get_available_units())
-        return int(float(self.u_height - u_available) / self.u_height * 100)
+        # Determine unoccupied units
+        available_units = self.get_available_units()
+
+        # Remove reserved units
+        for u in self.get_reserved_units():
+            if u in available_units:
+                available_units.remove(u)
+
+        occupied_unit_count = self.u_height - len(available_units)
+        percentage = int(float(occupied_unit_count) / self.u_height * 100)
+
+        return percentage
 
     def get_power_utilization(self):
         """
diff --git a/netbox/templates/dcim/rack.html b/netbox/templates/dcim/rack.html
index 60a70c36c..2a347e6e6 100644
--- a/netbox/templates/dcim/rack.html
+++ b/netbox/templates/dcim/rack.html
@@ -135,6 +135,10 @@
                         <a href="{% url 'dcim:device_list' %}?rack_id={{ rack.id }}">{{ rack.devices.count }}</a>
                     </td>
                 </tr>
+                    <tr>
+                        <td>Utilization</td>
+                        <td>{% utilization_graph rack.get_utilization %}</td>
+                    </tr>
             </table>
         </div>
         <div class="panel panel-default">