Investment Glossary · Quick read · No ads
1% Rule
A real estate investing guideline suggesting that a property's monthly rental income should equal at least 1% of its total purchase price to be considered cash flow positive.
What is 1% Rule?
A real estate investing guideline suggesting that a property's monthly rental income should equal at least 1% of its total purchase price to be considered cash flow positive.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
