Strategies
1% Rule
Rule of thumb: monthly rent should equal at least 1% of purchase price. A 5-second screening filter, not a verdict.
Example
A $200,000 property should rent for at least $2,000/mo to clear the 1% rule.
Why 1% Rule matters
The 1% rule is a back-of-napkin filter for triage. It's gotten harder to hit in most markets since 2020 — many strong cash-flow markets are 0.6–0.8% now. Use it to sort listings, not to make decisions.
Run the math on a real deal
TrueCap has a free calculator for this. Paste an address or enter numbers manually — get 1% Rule plus all the supporting metrics in 60 seconds.
Try the free 1% Rule calculatorRelated terms
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Every state's investing benchmarks on one table, the rent-to-price screen, and HUD rent benchmarks for 150 markets — the same sourced data that pre-fills every TrueCap analysis.