Is this rental worth a closer look? Enter the price and rent for an instant gut-check using the 1% rule, the 50% rule, and gross rent multiplier — the fast filters investors run before a full analysis.
Monthly rent should be at least 1% of the all-in price (purchase price + repairs). It's a 5-second filter: clears 1% → dig deeper; well under → the cash flow is probably thin. In pricey markets few deals hit a full 1%, so many investors lower the bar to fit their area.
Over time, operating expenses — taxes, insurance, maintenance, vacancy, management (everything except the mortgage) — tend to average about 50% of gross rent. So estimated monthly NOI ≈ rent ÷ 2. Subtract your mortgage payment to estimate cash flow before you have exact expense figures.
Price ÷ annual gross rent. Lower is better; it's handy for comparing similar properties in the same market quickly.
At or above 1.0% is the classic "look closer" threshold. 0.8–1.0% can still work in strong appreciation markets; below ~0.7% usually means little or negative cash flow once expenses and the mortgage are in.
No. These are screening filters to decide what's worth a full analysis. Always follow a passing deal with a complete cash-flow and ROI review using real quotes for taxes, insurance, and management.
This tool is for general educational purposes only and is not financial or investment advice. The 50% rule is an estimate; actual expenses vary widely. Verify all figures before investing.
Free tool by Hatchkeep — see all free landlord tools.