1% Rule Calculator
The 1% rule is a quick screen: a property's monthly rent should be at least 1% of its purchase price. It's a rule of thumb, not a substitute for full analysis — but it's a fast way to filter deals before you dig in.
Results
- Rent-to-price ratio
- 0.8%
- Rent needed for 1%
- $2,500
- Result
- ✗ Below the 1% rule
Estimates for educational use — not financial advice. Verify every figure for your own deal.
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Go deeper
Learn the strategy behind the numbers: Why savvy investors manufacture value instead of waiting for the market to hand it to them.
Read: Forced AppreciationFAQ
Is the 1% rule still realistic?+
In many appreciation-heavy markets, very few properties hit 1% today — it's more achievable in lower-cost cash-flow markets. Treat it as a screen, not a hard requirement, and always run the full numbers.
What if a property fails the 1% rule?+
It can still be a good investment — especially if you expect appreciation or can add value. Use the cap rate and cash-on-cash calculators for a complete picture.
Free download
Want this as a spreadsheet?
Download the free Rental Property ROI Calculator — the Excel version of this tool, with Buy & Hold and BRRRR analyzers built in.