Does a $200,000 House at $2,000 Rent Pass the 1% Rule?
A $200,000 rental property charging $2,000 per month in rent achieves exactly the 1% rule threshold.
How to use this tool
- Enter all-in purchase price and monthly rent in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your rent as % of price and the full breakdown beneath it.
Check if a $200,000 investment property renting for $2,000 per month meets the 1% rule benchmark for rental property investors.
Frequently asked questions
- What does passing the 1% rule mean?
- Passing means monthly rent is at least 1% of the all-in purchase price. This is a rough indicator that the property could cash flow positively after expenses and a typical mortgage. Always run full numbers before buying.
- Does the 1% rule still work today?
- In many high-cost markets (coastal cities), properties rarely meet the 1% rule. Investors in these markets rely on appreciation rather than cash flow. The rule is more achievable in secondary and tertiary markets with lower prices.