1% rule calculator
Target monthly rent is about 1% of purchase price.
Frequently asked questions
- What is the 1% rule in real estate?
- The 1% rule is a quick screen: monthly rent should be at least 1% of the purchase price (e.g. $2,500/mo on a $250,000 property).
- Does the 1% rule guarantee cash flow?
- No. It ignores taxes, insurance, vacancy, capex, and debt service. Use it as a first filter, then run cap rate and cash flow math.
Calculator disclaimer