1% Rule: $400,000 Rental Property at $3,000/Month Rent
A $400,000 property renting for $3,000 per month yields a 0.75% ratio, well below 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.
Evaluate whether a $400,000 rental property charging $3,000 per month in rent satisfies the 1% investment rule.
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.