Short answer: Your max offer on a rental is the highest price at which the rent still covers the mortgage and every operating cost. Work backward from the rent: subtract vacancy, maintenance, management, insurance and HOA, then divide by what each dollar of price costs you per month in property tax and loan payment.
It uses the same formulas as FirstDoor's full deal score.
Frequently asked questions
How do you calculate the max price for a rental property?
Set cash flow to $0 and solve for price: (rent × (1 − vacancy − maintenance − management) − insurance − HOA) ÷ (tax rate ÷ 12 + loan share × mortgage factor). The mortgage factor is the monthly payment per $1 borrowed at your rate and term.
Why does the calculator ask for a tax rate instead of a tax bill?
Property tax usually scales with the price, so a fixed bill would overstate what you can pay. The default of 0.89% is the US median property tax divided by the median home value (Census ACS 2024). Use your county's rate for a real listing.
Should I offer my break-even price?
Treat it as a ceiling, not a target. At break-even you earn $0 a month, so most investors offer less to keep a cushion. The $200 a month figure shows how much lower that cushion puts your price.