1% rule calculator
A 10-second screen: does the rent reach 1% of the price?
Rent-to-price ratio
0.83%
Passes 1% rule?
No
Rent needed for 1%
$3,000
Rent ratio = Monthly rent ÷ Purchase price
Want the full answer?
One number isn't a verdict. Run the complete analysis and see if the deal stands on a solid foundation.
Is this a good investment? →How it works
The 1% rule says monthly rent should be at least 1% of the purchase price. It's a quick screen, not a verdict.
In many markets today, 0.7–0.9% is realistic. Always run the full numbers before offering.
Frequently asked questions
Is the 1% rule still realistic?
In high-cost markets it's rare. Treat it as a filter to decide which deals deserve a full analysis.