Real Estate Calculators

1% Rule Checker

Enter a property's purchase price and expected monthly rent to check the rent-to-price ratio against the 1% rule.

0.80% rent-to-price ratio
Below the 1% rule

The 1% rule is a rough initial screening tool some investors use — monthly rent at or above 1% of purchase price suggests a deal worth deeper analysis. It ignores expenses, financing, taxes, and location, so it's a filter, not a substitute for full cash flow analysis.

How to use this tool

  1. 1Enter the purchase price.
  2. 2Enter the expected monthly rent.
  3. 3See the ratio and whether it meets the 1% rule.

Frequently asked questions

Is the 1% rule a reliable investment metric?+

It's a quick initial screening filter, not a full analysis — it ignores expenses, vacancy, financing terms, and appreciation, so a property that fails it can still be a good investment and vice versa.