Categories
Investments glossary

One Percent Rule

The one percent rule, sometimes stylized as the 1% rule, is used to determine if the monthly rent earned from a piece of investment property will exceed that property’s monthly mortgage payment. The goal of the rule is to ensure that the rent will be greater than or—at worst—equal to the mortgage payment, so the investor at least breaks even on the property.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *