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1% & 2% Rule Rental Screener

Screen a rental with the 1% and 2% rules: rent-to-price ratio, pass/fail, and the rent needed to hit each.

About this tool

1% & 2% Rule Rental Screener is a free, in-browser tool that runs a rental property through the two best-known quick screens investors use to judge cash-flow potential. Enter the purchase price, an optional rehab cost and the monthly rent, and it reports the rent-to-price ratio plus a pass or fail against both the 1% and 2% rules. Everything is calculated on your device — nothing is uploaded.

The total cost is purchase price + rehab, and the ratio is monthly rent ÷ total cost × 100. The 1% rule passes when monthly rent is at least 1% of the total cost; the 2% rule (a much tougher bar) passes at 2% or more. The tool also shows the exact rent you would need to hit each threshold: 1% of cost and 2% of cost.

Use it as a first-pass filter, not a verdict: a property that clears the 1% rule is more likely to cash flow, but the rules ignore taxes, insurance, interest rates and vacancy. The 2% rule is rare in most markets today. Treat a pass as a reason to run a full analysis, and a fail as a reason to negotiate the price or move on.

Frequently asked questions

What is the 1% rule?
It says a rental's monthly rent should be at least 1% of its total cost (purchase plus rehab). At 150,000 all-in, that means 1,500 a month. Meeting it suggests the property has a reasonable shot at positive cash flow.
Is the 2% rule realistic?
It is a much stricter screen — rent of 2% of cost each month — and in most markets today it is hard to find. Properties that pass the 2% rule tend to be in lower-priced areas with higher relative rents and often higher risk.
Should rehab cost be included?
Yes, if the property needs work. Adding rehab to the purchase price gives your true all-in cost, so the ratio reflects what you will actually have invested rather than just the sticker price. Leave it at zero for a turnkey rental.
Do these rules guarantee profit?
No. They are fast screens that ignore operating expenses, financing and vacancy. Use them to shortlist deals, then confirm with a full cash-flow analysis. All calculations here stay in your browser.

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