1% Rule Calculator
The rent you expect to charge
Don't know the expected rent?
Get a market rent analysis for any U.S. address — comparable rentals, an expected range, and a recommended price.
Cash flow, returns, and a deal score against your purchase price.Cash flow, returns, and a deal score.
Optional. Anything you leave blank comes from the county record.
How this is calculated
Rent-to-price ratio = Monthly rent ÷ Purchase price × 100
If that ratio is 1% or higher, the property passes. Equivalently, the target rent is 1% of the price. The 1% rule is only a screen — it ignores expenses, financing, and appreciation — so passing does not guarantee a good deal, and failing does not rule one out, especially in low-expense or high-growth markets.
Worked example
A $250,000 property needs $2,500/mo in rent to hit 1%. If you expect $2,500/mo, the ratio is exactly 1.00% and it passes. At $2,100/mo the ratio is 0.84% and it fails the screen.
Frequently asked questions
Is the 1% rule still realistic?
In many high-price markets, few properties hit 1%. It remains a useful quick filter, but always follow up with a full cash-flow analysis.
Does passing the 1% rule mean a property is a good buy?
No. It is a screen, not a verdict. Expenses, financing, and appreciation determine actual returns.
What rent should I use?
Enter the rent you realistically expect. For a data-backed market rent on a specific address, use the market rent analysis linked on this page.
Related tools
This calculator is for informational purposes only and uses the values you provide. It does not constitute financial, investment, tax, or legal advice, and should not be the sole basis for any investment or rental decision. Verify figures independently before acting.