Real Estate & Mortgage
1% / 2% Rule Screener
Check whether a rental property's monthly rent clears the 1% or 2% investing rule of thumb.
Your inputs
Change any value to update the result instantly.
Rent-to-price ratio
0.9091%
Rent needed for 1% rule
2,200
Rent needed for 2% rule
4,400
Current monthly rent
2,000
Below the 1% rule; the property may rely more on appreciation than cash flow.
Formula and working
Rent-to-price ratio = Monthly rent ÷ Purchase price
- 1
Collect the inputs
Purchase price (incl. repairs) = 220,000; Expected monthly rent = 2,000
- 2
Apply the formula
Rent-to-price ratio = Monthly rent ÷ Purchase price
- 3
Result
Rent-to-price ratio = 0.9091 %
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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