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 is used by the common 1% Rule and 2% Rule.
How Is It Calculated?
Rent to Value (RTV, RTP)
A ratio that compares the monthly gross rent to the purchase price or market value.
Written by Cindy Bellford
Updated over a week ago
Updated over a week ago