Source: wikibot/1-percent-rule
= 1% rule
{wiki=1%_rule}
The 1% rule is a guideline often used by real estate investors to quickly evaluate potential investment properties. It suggests that the monthly rental income of a property should be at least 1% of the purchase price to be considered a good investment. For example, if a property costs \$200,000, it should generate at least \$2,000 in monthly rental income (1% of \$200,000) to meet the rule of thumb.