LandlordCalculus
Home / Calculators / 1% Rule
FAST RENT-TO-PRICE CHECK

1% Rule Calculator

Compare scheduled monthly rent with the property price or your all-in acquisition cost.

The 1% rule is a screening heuristic, not a profitability test. It ignores vacancy, taxes, insurance, repairs, management, financing and capital expenditures.

MONTHLY RENT ÷ SELECTED COST BASIS1.00%

SELECTED COST BASIS
RENT NEEDED FOR 1%
ANNUAL BASE RENT
1% rule = monthly base rent ÷ selected cost basis × 100
Analyze the full rental property →

Better questions. Clearer rental deals.

Get occasional deal breakdowns and practical tool updates. Start with the free rental-deal checklist. Read a sample first.

Optional: new-listing alerts

What does the 1% rule mean?

A property meets the 1% rule when scheduled monthly base rent is at least 1% of the selected acquisition basis. For example, $2,500 per month on a $250,000 basis equals 1.00%.

Use it only as an early screen. A property below 1% can still work, and a property above 1% can still lose money once expenses and financing are included.

Next: calculate cash flow · Calculate cap rate

← View all landlord calculators