How the 1% Rule Calculator works

Check if a property's rent meets the 1% rule benchmark.

Show the math

Formula

1% Rule check: does monthly rent ≥ 1% of purchase price? A screening heuristic, not underwriting.

Inputs

Purchase price
Monthly rent

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

1% rule: A screening heuristic that monthly rent should be roughly one percent of purchase price.

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1% Rule Calculator

Property Information

Purchase Price

Monthly Rent

After Repair Value (ARV) - optional

About the 1% Rule

What It Is:

Quick screening tool for rental properties
Monthly rent should be at least 1% of purchase price
Helps identify properties with cash flow potential
Not a guarantee of profitability
Useful for initial property evaluation

Important Notes:

Rule works better in lower-priced markets
Higher-priced markets may not meet the rule
Does not account for expenses or financing
Does not consider appreciation potential
Always perform detailed financial analysis