1% Rule Calculator

Does monthly rent equal at least 1% of purchase price? Screen rental deals in seconds.

📍 Property Address (optional)
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InputsShared
Purchase Price
$
Monthly Rent
$
Pro Forma Rent
$
ARV (for pro forma)
$
1% Rule CheckCurrent
Pro Forma Check
Enter values to see results
1% Rule Result
%
Passes 1% Rule?
Rent Needed
to pass 1%
Difference
actual vs needed
1% Rule Analysis
Purchase Price
Monthly Rent
1% of Price
Rent/Price Ratio
After plan
Enter values to see results
Pro Forma % on ARV
Passes 1% on ARV?
Rent Needed
to pass 1% on ARV
Max Price for 1%
at this rent
Pro Forma 1% Analysis
ARV
Pro Forma Rent
1% of ARV
Ratio

The 1% rule checks if monthly rent ≥ 1% of purchase price. Enter the price and rent to see if the deal passes. Pro Forma uses ARV and higher rent.

The 1% Rule states that monthly rent should be at least 1% of the purchase price. A $200K property should rent for ≥$2,000/mo. It's a quick screening tool — not a guarantee of positive cash flow. Markets where the 1% rule is achievable: Midwest, South. Hard to achieve: coastal/gateway cities.