Short answer: The 1% rule says monthly rent should be at least 1% of the purchase price. It is a quick screen, not a verdict, because it ignores expenses and financing.
This free 1% rule checker uses the same formulas as FirstDoor's full deal score. See exactly how each number is calculated on our methodology page, or learn more in the guide: Is the 1 percent rule realistic.
Frequently asked questions
What is the 1% rule?
A quick filter: monthly rent should be at least 1% of the purchase price.
Is the 1% rule still realistic?
In many higher-priced markets few homes pass. Use it as a first glance, then check cash flow and DSCR.
Can a deal pass the 1% rule and still lose money?
Yes. High taxes, insurance or repairs can wipe out cash flow.
More free calculators
- Cap rate calculator
- Cash-on-cash calculator
- DSCR calculator
- Rental cash flow calculator
- Mortgage (PITI) calculator
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