Short answer: Budget for routine repairs and for big replacements (capex). Census surveys put homeowners' average routine maintenance at $1,356 a year (median $500, AHS 2023) and rental owners' capital improvements at a median $840 per unit a year (RHFS 2021). Together that is about $183 a month, or 10.9% of the US median 3-bedroom rent. FirstDoor's 5% of rent default is a minimum for routine repairs; older homes need more.
Definition
Capital expenditures (capex) are what a landlord spends to replace or upgrade major parts of a rental that last for years, like a roof, furnace, central air or water heater. Routine maintenance keeps things working; a capex reserve saves ahead for the big replacements.
By the numbers: US homeowners spent an average of $1,356 a year on routine maintenance (median $500; Census AHS 2023), and rental owners spent a median $840 per unit a year on capital improvements (RHFS 2021). Together that is about 10.9% of the US median 3-bedroom rent, more than FirstDoor's 5% default.
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Starts at the US median home ($360,600) and 3-bed rent ($1,677/mo), Census ACS 2024, at Freddie Mac's 7.32% rate. Assumes tax at 0.89% of price (US median), $1,200/yr insurance, 3% closing costs, 5% vacancy, 5% maintenance and 8% management. Adjust all of these in the full calculator.
The short answer
Plan for two buckets. Maintenance is the routine repairs that keep a home working. Capex (capital expenditures) is saving up for big replacements like a roof, furnace or water heater. A first rental needs money set aside for both.
The best national numbers come from Census surveys. Homeowners reported spending a median of $500 and an average of $1,356 a year on routine maintenance (American Housing Survey 2023). Rental property owners spent a median of $840 per unit a year on capital improvements (Rental Housing Finance Survey 2021).
Add the average maintenance and the median capex together and you get about $2,196 a year, or $183 a month. That is 10.9% of the US median 3-bedroom rent ($1,677/mo, Census ACS 2024). FirstDoor's default of 5% of rent ($84/mo on that rent) is a floor for routine repairs, not a full repairs-plus-capex budget.
Good to know: The two surveys measure different owners in different years: AHS covers homeowners maintaining the home they live in (2023 dollars), and RHFS covers rental properties of every size (2021 survey). Adding them gives a rough benchmark, not a measured landlord budget.
Maintenance vs capex
They feel the same when the check clears, but they behave differently:
| Maintenance (repairs) | Capex (capital expenditures) | |
|---|---|---|
| What it is | Keeping things working: a leaky faucet, a clogged drain, an HVAC service call, a broken disposal, touch-up paint between tenants. | Replacing or upgrading a major part that lasts years: roof, furnace, central air, water heater, flooring, windows. |
| How often | Small and frequent. | Rare and large. Years can go by with none, then one bill wipes out a year of cash flow. |
| How to budget | A monthly allowance, usually a % of rent. | A reserve you build up ahead of time, based on each item's age and remaining life. |
| Taxes (IRS Pub 527) | Repairs and maintenance may generally be deducted in the year paid. | Improvements (a betterment, a restoration, or adapting the property to a new use) must be capitalized and depreciated. |
Tip: In the FirstDoor calculator, the maintenance field is one combined budget. Put your repairs and capex reserve in it, as a percent of rent.
What owners actually spend: Census data
The American Housing Survey asks homeowners what they spend on routine maintenance (painting, plumbing, roofing and other minor repairs) in a typical year. Census's 2023 national estimates for 86.9 million owner-occupied homes:
- Median: $500 a year ($42 a month).
- Average: $1,356 a year (±$40), or $113 a month. The average is far above the median because a minority of owners spend a lot.
- 16% of owners who answered spent nothing in a typical year, while 14% spent $2,400 or more.
That second point is the real lesson for landlords: most years are cheap and some years are expensive. A budget is an average over the bad years, not a guess at this year.
For rentals, the 2021 Rental Housing Finance Survey (HUD and Census) found that 76% of rental property owners made some capital improvement in 2020, and owners spent a median of $840 per rental unit a year on capital improvements ($70 a month). Median operating expenses, not counting the mortgage, were $380 a month per unit on a median rent of $1,000.
Good to know: AHS routine maintenance comes from homeowners, not landlords, and leaves out major improvements, which AHS tracks separately. Rentals add tenant turnover, cleaning and more wear, so treat it as a floor. None of these dollar figures are adjusted for inflation since the survey year.
Older homes cost more
FirstDoor tabulated the same AHS 2023 question by when the home was built, using Census's public use file. Average routine maintenance among homeowners who reported an amount:
| Year built | Owner homes (weighted) | Survey responses | Average / yr | Average / mo |
|---|---|---|---|---|
| Before 1940 | 8.4M | 2,641 | $1,616 | $135 |
| 1940–1959 | 10.8M | 3,583 | $1,426 | $119 |
| 1960–1979 | 18.3M | 5,948 | $1,375 | $115 |
| 1980–1999 | 20.4M | 6,806 | $1,375 | $115 |
| 2000–2009 | 11.2M | 3,757 | $1,430 | $119 |
| 2010–2019 | 6.0M | 1,928 | $990 | $83 |
| 2020–2023 | 2.5M | 520 | $381 | $32 |
Homes built since 2020 averaged $381 a year and homes from the 2010s $990. Homes built before 1940 averaged $1,616. In between, from 1940 to 2009, spending was fairly flat at about $1,375 to $1,430. New homes are cheap to keep up for their first decade or so, until the original roof, mechanicals and appliances start wearing out.
Good to know: Census adds a little random noise to public use file amounts to protect privacy, so these band averages are FirstDoor estimates. They match Census's published total closely: $1,354 from the file vs $1,356 published. Smaller groups (like 2020–2023, 520 responses) are less precise.
How long big-ticket items last
Capex is predictable in one way: every major part has a typical life. InterNACHI's life expectancy chart for homes, assuming regular maintenance and normal wear:
| Item | Typical life (years) |
|---|---|
| Roof, asphalt shingles (3-tab) | 20 |
| Roof, architectural asphalt | 30 |
| Water heater (conventional) | 6 to 12 |
| Furnace | 15 to 25 |
| Central air conditioner | 7 to 15 |
| Heat pump | 10 to 15 |
| Carpet | 8 to 10 |
| Interior paint | 10 to 15 |
| Exterior paint | 7 to 10 |
| Refrigerator | 9 to 13 |
| Dishwasher | 9 |
| Clothes dryer | 13 |
| Garage door opener | 10 to 15 |
| Asphalt driveway | 15 to 20 |
| Wood fence | 20 |
| Sump pump | 7 |
| Electrical service panel | 60 |
Monthly capex reserve ≈ replacement cost ÷ years of life left ÷ 12Add that up for the roof, HVAC, water heater, appliances and flooring. Get real replacement quotes in your area for the costs, and use the inspection report for the ages. A 22-year-old furnace in a house you just bought means saving fast, or negotiating the price down.
Red flag: Buying an older home with a "maintenance" budget sized for a new one. If the roof, furnace and water heater are all near the end of their lives, you are buying three bills along with the house.
Rules of thumb: 5%, 10%, 1% of value, 50%
These are shortcuts, not data. Here is what each one means on the US median home ($360,600) renting for the US median 3-bedroom rent ($1,677/mo):
- 5% of rent (FirstDoor's default): $84/mo, or $1,006 a year. The calculator flags anything below 5% as optimistic for a first rental.
- 8% to 10% of rent: $134 to $168/mo. FirstDoor's glossary calls 5–10% a common starting point for maintenance plus capex.
- 1% of the home's value per year: $301/mo, which is 17.9% of rent. It scales with price, and price includes land, so in expensive cities it gives very large budgets that a roof or furnace doesn't really justify.
- The 50% rule: all operating costs (taxes, insurance, vacancy, repairs, capex, management) at half the rent. It isn't a maintenance number, but it should include one.
Against the Census benchmarks above, 5% of the US median rent ($1,006/yr) covers more than the median owner's routine maintenance ($500) but less than the average ($1,356), and nothing for capex. That is why 5% is the minimum, not the goal.
What each budget does to cash flow
The US median home bought as a rental with 20% down at 7.32% (Freddie Mac, October 22, 2026), the US median property tax ($3,211/yr), $1,200/yr insurance (assumed), 5% vacancy, 8% management and 3% closing costs. Only the maintenance budget changes:
| Maintenance budget | % of rent | $ / mo | $ / yr | Cash flow / mo | vs 5% |
|---|---|---|---|---|---|
| FirstDoor default: 5% of rent | 5% | $84 | $1,006 | −$974 | — |
| AHS average routine maintenance ($1,356/yr) | 6.74% | $113 | $1,356 | −$1,003 | −$29 |
| 8% of rent | 8% | $134 | $1,610 | −$1,024 | −$50 |
| 10% of rent | 10% | $168 | $2,012 | −$1,058 | −$84 |
| AHS routine + RHFS capex ($2,196/yr) | 10.91% | $183 | $2,196 | −$1,073 | −$99 |
| 1% of value per year | 17.92% | $301 | $3,606 | −$1,191 | −$217 |
Going from 5% to 10% of rent costs $84 a month here. Budgeting the full Census-based $2,196 a year costs $99 a month more than 5%, and the 1%-of-value rule costs $217 more. Click a row to open it in the calculator.
Tip: If a deal only works at 5%, it's fragile. Run it at 10% in the rental cash flow calculator before you offer, especially on an older home.
Housing age and maintenance budgets in 98 cities
How old the housing is in each of the 98 big US rental markets FirstDoor tracks, and what two rules of thumb mean in dollars. Median year built is for all housing units and for renter-occupied homes (Census ACS 2024). Budgets use each city's median home value and median 3-bedroom gross rent. Cash flow uses the same assumptions as above with the city's median tax. Sorted oldest first.
| # | City | Median year built | Rentals: median year built | Built before 1980 | 5% of rent / mo | 1% of value / mo | Cash flow at 5% | Cash flow at 1% of value |
|---|---|---|---|---|---|---|---|---|
| 1 | Buffalo, NY | ≤1939 | ≤1939 | 90% | $61 | $156 | −$257 | −$352 |
| 2 | St. Louis, MO | ≤1939 | 1945 | 87% | $64 | $179 | −$416 | −$531 |
| 3 | Rochester, NY | ≤1939 | 1946 | 86% | $66 | $137 | −$182 | −$253 |
| 4 | Cleveland, OH | 1942 | 1949 | 85% | $55 | $91 | $63 | $26 |
| 5 | Pittsburgh, PA | 1944 | 1959 | 83% | $82 | $184 | −$120 | −$222 |
| 6 | Detroit, MI | 1946 | 1949 | 90% | $63 | $80 | $284 | $267 |
| 7 | Baltimore, MD | 1947 | 1953 | 82% | $78 | $206 | −$462 | −$590 |
| 8 | Boston, MA | 1947 | 1959 | 70% | $108 | $602 | −$2,677 | −$3,172 |
| 9 | Providence, RI | 1947 | 1963 | 76% | $76 | $345 | −$1,483 | −$1,752 |
| 10 | Philadelphia, PA | 1949 | 1955 | 82% | $79 | $211 | −$379 | −$512 |
| 11 | Worcester, MA | 1951 | 1956 | 72% | $95 | $343 | −$1,225 | −$1,474 |
| 12 | Oakland, CA | 1952 | 1964 | 74% | $124 | $737 | −$3,654 | −$4,267 |
| 13 | Cincinnati, OH | 1952 | 1965 | 76% | $79 | $219 | −$557 | −$697 |
| 14 | St. Paul, MN | 1952 | 1965 | 77% | $74 | $252 | −$896 | −$1,074 |
| 15 | New York, NY | 1953 | 1954 | 78% | $105 | $649 | −$3,217 | −$3,762 |
| 16 | Milwaukee, WI | 1954 | 1958 | 83% | $64 | $173 | −$499 | −$609 |
| 17 | Chicago, IL | 1954 | 1962 | 73% | $83 | $284 | −$1,042 | −$1,244 |
| 18 | Minneapolis, MN | 1954 | 1970 | 72% | $87 | $307 | −$1,063 | −$1,283 |
| 19 | Toledo, OH | 1956 | 1965 | 84% | $57 | $102 | $17 | −$28 |
| 20 | Yonkers, NY | 1957 | 1966 | 79% | $106 | $435 | −$2,019 | −$2,347 |
| 21 | Long Beach, CA | 1959 | 1967 | 77% | $134 | $708 | −$3,051 | −$3,625 |
| 22 | Washington, DC | 1960 | 1971 | 66% | $128 | $611 | −$2,408 | −$2,891 |
| 23 | Richmond, VA | 1962 | 1973 | 68% | $84 | $315 | −$1,118 | −$1,348 |
| 24 | New Orleans, LA | 1964 | 1969 | 71% | $81 | $254 | −$670 | −$843 |
| 25 | Birmingham, AL | 1964 | 1975 | 70% | $65 | $158 | −$173 | −$266 |
| 26 | Los Angeles, CA | 1965 | 1970 | 69% | $128 | $790 | −$3,719 | −$4,381 |
| 27 | Norfolk, VA | 1965 | 1970 | 67% | $90 | $259 | −$590 | −$760 |
| 28 | Portland, OR | 1966 | 1978 | 62% | $118 | $490 | −$1,888 | −$2,260 |
| 29 | Newark, NJ | 1967 | 1970 | 65% | $91 | $330 | −$1,351 | −$1,591 |
| 30 | Glendale, CA | 1967 | 1972 | 67% | $135 | $986 | −$4,960 | −$5,812 |
| 31 | Tacoma, WA | 1968 | 1977 | 65% | $107 | $417 | −$1,484 | −$1,794 |
| 32 | Kansas City, MO | 1969 | 1972 | 63% | $82 | $218 | −$425 | −$561 |
| 33 | Santa Ana, CA | 1970 | 1975 | 69% | $130 | $644 | −$2,554 | −$3,068 |
| 34 | St. Petersburg, FL | 1970 | 1976 | 68% | $118 | $364 | −$801 | −$1,047 |
| 35 | Louisville, KY | 1970 | 1977 | 60% | $65 | $201 | −$537 | −$674 |
| 36 | Memphis, TN | 1971 | 1977 | 64% | $71 | $175 | −$252 | −$356 |
| 37 | Salt Lake City, UT | 1972 | 1986 | 58% | $87 | $517 | −$2,312 | −$2,742 |
| 38 | Anaheim, CA | 1973 | 1975 | 65% | $136 | $744 | −$3,233 | −$3,841 |
| 39 | Tulsa, OK | 1973 | 1977 | 64% | $69 | $195 | −$437 | −$564 |
| 40 | Indianapolis, IN | 1974 | 1978 | 58% | $70 | $201 | −$462 | −$592 |
| 41 | Omaha, NE | 1974 | 1979 | 60% | $83 | $225 | −$593 | −$735 |
| 42 | Knoxville, TN | 1974 | 1981 | 57% | $69 | $246 | −$728 | −$904 |
| 43 | Hialeah, FL | 1975 | 1975 | 61% | $116 | $372 | −$848 | −$1,104 |
| 44 | Honolulu, HI | 1975 | 1976 | 64% | $121 | $708 | −$3,006 | −$3,593 |
| 45 | Wichita, KS | 1976 | 1976 | 54% | $66 | $177 | −$392 | −$504 |
| 46 | Riverside, CA | 1976 | 1977 | 57% | $125 | $514 | −$1,729 | −$2,117 |
| 47 | San Jose, CA | 1976 | 1981 | 59% | $168 | $1,059 | −$5,115 | −$6,006 |
| 48 | Arlington, VA | 1976 | 1985 | 53% | $165 | $788 | −$3,325 | −$3,948 |
| 49 | Alexandria, VA | 1977 | 1981 | 55% | $145 | $587 | −$2,135 | −$2,577 |
| 50 | Jersey City, NJ | 1977 | 1986 | 51% | $112 | $476 | −$2,158 | −$2,522 |
| 51 | Sacramento, CA | 1978 | 1979 | 52% | $108 | $430 | −$1,480 | −$1,801 |
| 52 | Tucson, AZ | 1979 | 1981 | 52% | $84 | $250 | −$511 | −$676 |
| 53 | Denver, CO | 1979 | 1989 | 51% | $128 | $530 | −$1,746 | −$2,148 |
| 54 | San Diego, CA | 1980 | 1983 | 50% | $153 | $817 | −$3,496 | −$4,161 |
| 55 | Stockton, CA | 1981 | 1978 | 49% | $100 | $381 | −$1,255 | −$1,536 |
| 56 | Seattle, WA | 1981 | 1996 | 49% | $148 | $792 | −$3,530 | −$4,175 |
| 57 | Fresno, CA | 1982 | 1979 | 47% | $95 | $330 | −$959 | −$1,195 |
| 58 | Columbus, OH | 1982 | 1985 | 47% | $84 | $233 | −$564 | −$713 |
| 59 | Albuquerque, NM | 1983 | 1982 | 46% | $78 | $270 | −$844 | −$1,037 |
| 60 | Corpus Christi, TX | 1983 | 1985 | 44% | $81 | $195 | −$328 | −$443 |
| 61 | Dallas, TX | 1983 | 1989 | 46% | $93 | $284 | −$861 | −$1,051 |
| 62 | Madison, WI | 1983 | 1991 | 48% | $94 | $349 | −$1,409 | −$1,664 |
| 63 | Oklahoma City, OK | 1984 | 1982 | 44% | $74 | $216 | −$518 | −$661 |
| 64 | Winston-Salem, NC | 1984 | 1985 | 45% | $72 | $234 | −$639 | −$801 |
| 65 | Virginia Beach, VA | 1984 | 1986 | 38% | $101 | $336 | −$931 | −$1,166 |
| 66 | Miami, FL | 1984 | 1988 | 47% | $109 | $498 | −$2,027 | −$2,417 |
| 67 | Lincoln, NE | 1984 | 1989 | 45% | $70 | $232 | −$814 | −$976 |
| 68 | El Paso, TX | 1985 | 1985 | 43% | $66 | $175 | −$477 | −$585 |
| 69 | Lexington, KY | 1985 | 1986 | 43% | $78 | $265 | −$782 | −$969 |
| 70 | Gainesville, FL | 1985 | 1987 | 42% | $89 | $226 | −$335 | −$471 |
| 71 | Houston, TX | 1985 | 1988 | 44% | $91 | $251 | −$623 | −$783 |
| 72 | Lubbock, TX | 1986 | 1989 | 44% | $79 | $186 | −$283 | −$390 |
| 73 | Phoenix, AZ | 1986 | 1989 | 40% | $107 | $379 | −$995 | −$1,267 |
| 74 | San Antonio, TX | 1986 | 1989 | 40% | $85 | $217 | −$470 | −$602 |
| 75 | Tempe, AZ | 1986 | 1996 | 36% | $104 | $407 | −$1,244 | −$1,547 |
| 76 | Colorado Springs, CO | 1987 | 1987 | 38% | $107 | $400 | −$1,135 | −$1,427 |
| 77 | Aurora, CO | 1987 | 1988 | 33% | $120 | $412 | −$1,068 | −$1,361 |
| 78 | Irving, TX | 1987 | 1989 | 34% | $106 | $292 | −$674 | −$859 |
| 79 | Greensboro, NC | 1987 | 1991 | 40% | $75 | $242 | −$679 | −$846 |
| 80 | Tampa, FL | 1987 | 1996 | 42% | $109 | $412 | −$1,369 | −$1,672 |
| 81 | Nashville, TN | 1988 | 1990 | 38% | $103 | $366 | −$1,025 | −$1,287 |
| 82 | Mesa, AZ | 1989 | 1987 | 27% | $104 | $367 | −$949 | −$1,213 |
| 83 | Jacksonville, FL | 1990 | 1991 | 36% | $88 | $271 | −$647 | −$830 |
| 84 | Arlington, TX | 1990 | 1993 | 26% | $94 | $282 | −$780 | −$967 |
| 85 | Tallahassee, FL | 1990 | 1995 | 35% | $80 | $245 | −$615 | −$780 |
| 86 | Bakersfield, CA | 1992 | 1987 | 33% | $99 | $339 | −$1,028 | −$1,268 |
| 87 | Reno, NV | 1993 | 1992 | 34% | $111 | $473 | −$1,599 | −$1,961 |
| 88 | Atlanta, GA | 1993 | 2002 | 40% | $96 | $385 | −$1,456 | −$1,745 |
| 89 | Plano, TX | 1994 | 1998 | 19% | $118 | $451 | −$1,653 | −$1,986 |
| 90 | Las Vegas, NV | 1995 | 1991 | 22% | $103 | $382 | −$1,109 | −$1,388 |
| 91 | Orlando, FL | 1995 | 1998 | 29% | $115 | $358 | −$869 | −$1,113 |
| 92 | Durham, NC | 1996 | 1997 | 28% | $99 | $366 | −$1,167 | −$1,434 |
| 93 | Fort Worth, TX | 1998 | 1998 | 32% | $98 | $275 | −$727 | −$904 |
| 94 | Spring Valley, NV | 1999 | 2000 | 12% | $105 | $367 | −$985 | −$1,247 |
| 95 | Raleigh, NC | 1999 | 2001 | 22% | $95 | $375 | −$1,280 | −$1,559 |
| 96 | Charlotte, NC | 1999 | 2002 | 26% | $98 | $360 | −$1,107 | −$1,368 |
| 97 | Austin, TX | 2000 | 2003 | 25% | $111 | $476 | −$2,042 | −$2,407 |
| 98 | Henderson, NV | 2002 | 2001 | 7% | $113 | $434 | −$1,328 | −$1,649 |
| United States | 1981 | 1981 | 48% | $84 | $301 | −$974 | −$1,191 |
The median city's housing was built around 1977 (renter-occupied homes: 1981), and in the median city 52% of homes were built before 1980. 54 of the 98 cities have older housing than the US as a whole (median 1981), and in 53 at least half the homes predate 1980. The oldest: Buffalo, NY, St. Louis, MO and Rochester, NY. The newest: Charlotte, NC, Austin, TX and Henderson, NV.
The 1%-of-value rule works out to a median of 17.4% of rent across these cities, from 6.4% in Detroit, MI to 36.6% in Glendale, CA. At FirstDoor's 5%, 3 cities cash-flow on a median home; at 1% of value, 2 do. Click a 1%-of-value cash flow figure to open it in the calculator.
Good to know: These are citywide medians with margins of error, and the median home and median rental are different houses. Median year built says how old a city's housing is, not how old the house you're looking at is: check the listing and the inspection. ACS reports rents above $3,500 only as "$3,500+", so San Francisco, CA and Irvine, CA are left out. "≤1939" means the median falls in Census's oldest category, 1939 or earlier.
How to set your budget
1. Start at 5% of rent for routine repairs on a newer home with recent systems.
2. Add a capex reserve from the inspection: list the roof, HVAC, water heater, appliances and flooring with their ages, and use the formula above with local quotes.
3. Sanity-check the total. On a typical home, the Census benchmarks land around 11% of rent; older homes (especially pre-1940) and higher-turnover rentals need more.
4. Keep cash reserves on top of the monthly budget, because capex arrives in lumps. See how much cash you need for a first rental.
5. Rerun the deal at your number. If it stops cash-flowing, the price is too high, not the budget.
Then check the rest of the expense lines: vacancy, management, insurance and property taxes. For what a healthy result looks like, see what good cash flow is.
Good to know: This is educational, not investment advice. Repair costs vary a lot by home, age, climate and how well the last owner kept it up.
Worked example
The US median home ($360,600, Census ACS 2024) bought as a rental with 20% down at 7.32% for 30 years (Freddie Mac average, October 22, 2026). Rent is the US median 3-bedroom gross rent ($1,677/mo), the US median property tax ($3,211/yr), $1,200/yr insurance (assumed), 5% vacancy, 8% management, closing costs assumed at 3% ($10,818). Maintenance is budgeted at the Census-based $2,196/yr (AHS average routine maintenance $1,356 + RHFS median capex $840), which is 10.91% of rent.
| Rent / mo | $1,677 |
| Maintenance + capex (10.91%) | −$183 |
| Other operating costs (/mo) | −$586 |
| Mortgage (P&I) | −$1,982 |
| Cash flow / mo | −$1,073 |
| Cash flow at FirstDoor's 5% | −$974 |
Frequently asked questions
How much should I budget for maintenance on a rental property?
Budget for routine repairs and for big replacements (capex). Census surveys put homeowners' average routine maintenance at $1,356 a year (median $500, AHS 2023) and rental owners' capital improvements at a median $840 per unit a year (RHFS 2021). Together that is about $183 a month, or 10.9% of the US median 3-bedroom rent. FirstDoor's 5% of rent default is a minimum for routine repairs; older homes need more.
What is the difference between maintenance and capex?
Maintenance is routine repairs that keep the property working, like fixing a leak or servicing the furnace. Capex (capital expenditures) is replacing or upgrading major parts that last years, like a roof, HVAC system or water heater. IRS Publication 527 says repairs may generally be deducted, while improvements must be capitalized and depreciated.
Is the 1% rule for maintenance accurate?
It is a rule of thumb, not data. On the US median home ($360,600) it means $301 a month, about 17.9% of the median 3-bedroom rent, well above Census-based benchmarks of about $183. Because it scales with price, including land, it overstates budgets in expensive cities; across 98 big cities it ranges from 6.4% to 36.6% of rent.
Does FirstDoor's 5% maintenance include capex?
FirstDoor has one maintenance field, so whatever you enter should cover repairs and capex together. The 5% default ($84/mo on the US median rent) is a floor, and the calculator flags anything lower as optimistic. For an older home or one with aging systems, 8% to 10% or a reserve built from the inspection is more realistic.
Do older homes cost more to maintain?
Yes, on average. In FirstDoor's tabulation of the Census AHS 2023 public use file, homeowners in homes built before 1940 spent an average of $1,616 a year on routine maintenance, against $990 for homes built in the 2010s and $381 for homes built since 2020. The median US home was built in 1981 (Census ACS 2024).
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Sources
Educational content, not financial advice. Loan programs and requirements change; confirm with a lender.