The 1% rule
A rule of thumb that a deal is worth a closer look when gross monthly rent is at least 1% of the purchase price.
In plain terms
The 1% rule says a $300,000 property should rent for $3,000 or more per month. At a 30-year mortgage it tends to track positive cash flow. It is market-specific: few high-cost-market deals meet it, while cheaper markets clear it easily.