All Collections
Property Analysis Metrics
Purchase Criteria
1% Rule (Rental Properties)
1% Rule (Rental Properties)
States that the ratio of monthly gross rent to the purchase price should be 1% or higher.
Cindy Bellford avatar
Written by Cindy Bellford
Updated over a week ago

What Is It?

The "1% Rule" is a purchase criteria commonly used by real estate investors when analyzing rental properties.

According to this rule, the rent to value ratio of a rental property should be 1% or higher.

How Is It Calculated?

You can learn more about the 1% Rule on our blog.

Did this answer your question?