Rent to Value Ratio (RTV, RTP)

A ratio that compares the monthly gross rent to the purchase price or market value.

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Written by Cindy Bellford
Updated over a week ago

What Is It?

A rate of return of a rental property based on comparing the monthly gross rent to the purchase price or market value.

The rent to value ratio, sometimes also called the rent to price ratio, is used by the common 1% Rule and 2% Rule.

How Is It Calculated?

You can learn more about the Rent to Value Ratio on our blog.

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