How it works
How this tool works.
The 1% rule is shorthand investors use to triage listings fast: if the monthly rent is at least 1% of the purchase price, the deal is worth a closer look. It’s a screen, not a law — a way to skip the obvious non-starters, not to pick winners.
Enter the price and the monthly rent, and this calculator shows the rent as a percentage of price, the rent the 1% target would imply, and whether the deal clears the screen. It’s arithmetic on your inputs — a first-pass filter that plenty of sound rentals miss, especially in pricier markets.
Enter the purchase price and the monthly rent.
The tool divides the rent by the price (×100) to show the rent as a percentage of price — the 1% rule looks for 1.00% or more.
It also shows 1% of the price: the monthly rent that would exactly meet the screen, so you can see how far off a listing is.
You get a clear “clears the screen” or “worth a closer look” read — framed as a first-pass filter, never a pass/fail verdict on the investment.
Make the result useful
One-percent-rule screening
Purchase price is the value used to set the monthly-rent screen.
Monthly rent is expected recurring rent, not a one-time incentive.
The 1% threshold is a chosen screening convention, not a universal requirement.
Expenses, financing, condition, and local demand must be reviewed after the quick screen.
The assumptions that move this result
Purchase price
Acquisition amount used for the screen.
Monthly rent
Expected recurring rent.
Threshold
1% monthly-rent convention.
Context
Expenses and financing outside the rule.
one-percent target rent = purchase price × 1%
Use the output as a documented scenario result, not a guarantee.
Read the number in context
Worked scenario
Scenario: $250,000 price implies a $2,500 monthly 1% target.
Edge case
Edge case: a property below 1% can still work with strong expenses or financing.
Does not calculate NOI, cash flow, or investment suitability.
Before you act
• Use as a first filter only.
• Build an expense budget next.
• Check rent evidence and condition.
Worked formula
one-percent target rent = purchase price × 1%
Is this a forecast?
No. It calculates the assumptions you enter.
Can it replace professional review?
No. Use current records and qualified advice.
What should I save?
Keep the assumptions and source records used for the decision.