The one percent rule is a guideline frequently referenced by real estate investors when evaluating potential property purchases. This rule of thumb states that the monthly rent should be equal to or greater than one percent of the total purchase price of an investment property.
Are there any markets in the US that meet the 1% rule for detached single family residences in class A and B neighborhoods? Might be unrealistic given the current real estate market...curious to know. Vegas was true to this formula back in 2011 + 2012. You could purchase a house in Green Valley, Henderson (neighboring city of Las Vegas) for $130k and rent it for $1,300.
So fascinating to watch real estate cycles over time.