Quickly screen a deal: enter the purchase price and monthly rent to see if it passes the 1% rule. Get an instant pass/fail plus helpful context for next steps.
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Enter the purchase price and monthly rent. The 1% rule says monthly rent should be about 1% of the purchase price.
A quick screening rule of thumb: a rental often looks attractive if the monthly rent is around 1% of the purchase price. For a $300,000 property, you'd want about $3,000/month in rent to "pass." It's a starting point—not a substitute for full analysis.
It depends on market and property type. Some cash‑flow markets still hit 1%+, while coastal and high‑appreciation areas often don't. Use it as a filter—then run full numbers.
For a more conservative screen, include rehab in your effective purchase price and re‑check the 1% ratio after ARV and stabilized rent.
After this quick check, use a full cash‑flow calculator for taxes, insurance, cap‑ex, management, and mortgage terms.