Free calculator

1% Rule Calculator

The 1% rule is a fast screen: monthly rent should be at least 1% of the purchase price. It's a rough filter, not a decision — it ignores expenses, taxes, and financing — but it's a quick way to throw out obvious non-cash-flow deals before you underwrite.

Rent-to-price

1.0%+ passes the screen. In many markets today, very few listings hit 1% — which is exactly why finding the rare ones fast matters.

This is a one-number screen. Want the full picture on a real deal?

Run any market through PropHunt free — ranked deals + a full AI investment memo (cap rate, DSCR stress, IRR, comps, risks) on the top pick. No credit card.

FAQ

Is the 1% rule still realistic in 2026?

In many markets, very few on-market listings hit 1% — it's gotten harder. That's the point of a scanner: surface the rare deals that do, instead of scrolling thousands that don't.

Is passing the 1% rule enough to buy?

No — it's a screen, not an underwrite. It ignores expenses, taxes, vacancy, and financing. Use it to shortlist, then run a real analysis (cap rate, cash-on-cash, DSCR).