Real Estate
1% Rule Calculator (Rent-to-Price Ratio)
Check a rental against the 1% rule in seconds.
Free 1% rule calculator. Enter monthly rent and purchase price to get the rent-to-price ratio and see whether a rental property passes the 1% (and 2%) rule screen.
How it works
Enter the rent
Input the property's expected monthly rent.
Enter the price
Add the purchase price (plus rehab, if you want the all-in number).
Read the ratio
The calculator returns the rent-to-price ratio and the rent each property would need to hit the 1% and 2% thresholds.
Frequently asked
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. A $200,000 property would need $2,000/month rent to pass. It's a fast filter to decide which deals are worth analyzing further, not a guarantee of cash flow.
Is the 1% rule still realistic?
It's gotten harder in many appreciating markets, where properties often rent for 0.5–0.8% of price. The rule is a screening heuristic, not a hard line — use it to rank deals quickly, then run a full cash-flow analysis on the ones that come close.
What is the 2% rule?
A stricter version — rent of at least 2% of price — typically only achievable in lower-cost, higher-yield (and often higher-risk) markets. This calculator shows the rent needed for both thresholds so you can see where a property lands.
Should I buy based on the 1% rule alone?
No. The 1% rule ignores expenses, financing, and condition. It's a first-pass filter to save time, not a buy decision. Pass it through the cash flow and cash-on-cash calculators before committing.