One Percent Rule Calculator

About this calculator

The 1% rule is a quick screening test used by rental property investors: a property is worth a closer look only if its expected monthly rent is at least 1% of its total purchase price (including any immediate repair costs). A $200,000 property, for instance, should rent for around $2,000 a month or more to pass the test.

The rule is not a substitute for a full cash-flow analysis — it ignores taxes, insurance, maintenance, vacancy, and financing costs — but it is a fast way for investors to filter out deals that are unlikely to cash-flow before spending time on detailed underwriting. This calculator takes the monthly rent and purchase price and tells you the rent-to-price ratio and whether the property passes the 1% threshold.