What is the 1% Rule in Real Estate?
The 1% rule is a real estate investment guideline indicating the minimum monthly rent you must charge your tenantto break even on a rental property. The rule states that your rent
shouldbe at least 1% of your property’s sale price.
The 1% rule or guideline is a helpful tool, but should not be your main metric of success when analyzing an investment property. This guideline has shifted over the years as property values and interest rates have increased, but the guideline should be a good initial indicator if a property will or will not cash flow.
If you are looking for more information about the 1% rule or alternative analysis metrics commonly used in real estate, go check out1% Rule In Real Estate: What It Is And How It Works!
Do you still use the 1% rule when running the numbers on a property?
Are your properties currently meeting the 1% rule?
