price to rent ratio

[Jason Malabute]

What is considered a good price to rent ratio? How do you know if price to rent ratio percent in your market is good?

[Anthony Wick]

@Dennis M.  Well, that would certainly be nice. However, around here, if you get to 2% or more, then you're dealing with class C or D properties and neighborhoods, and that just isn't for me. Looked at a deal this summer that was 2.4%. I figured, if I can't actually collect the rent each month, it's more like 0%.