The 1% rule is a real estate investment guideline indicating the minimum monthly rent you must charge to break even on a rental property. The rule states that your rent should be at least 1% of your property’s sale price.
While the 1% rule can be a helpful metric for investment properties, it’s meant to be more of a filter than anything. You should take it with a grain of salt, especially when accounting for current home prices.
This post will detail the 1% rule, what it doesn’t account for, and other metrics you should consider.
Learn more about your ad choices. Visit megaphone.fm/adchoices
BiggerPockets Daily