{
  "@context": "https://schema.org",
  "@type": "Dataset",
  "name": "How much profit should you make on a rental property?",
  "description": "Target $150–$300 of monthly cash flow per unit after all expenses including reserves, and an 8–12% cash-on-cash return. Anything under $100 per unit leaves no cushion for a single vacancy or a water heater replacement.",
  "url": "https://www.revenuelab.fyi/answers/how-much-profit-should-you-make-on-a-rental-property",
  "dateModified": "2026-08-12",
  "creator": {
    "@type": "Organization",
    "name": "RevenueLab",
    "url": "https://www.revenuelab.fyi"
  },
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "keywords": [
    "Rental Property ROI Calculator",
    "Cap Rate Calculator",
    "Mortgage Payment Calculator"
  ],
  "distribution": {
    "@type": "DataDownload",
    "contentUrl": "https://www.revenuelab.fyi/api/public/page.json?path=answers%2Fhow-much-profit-should-you-make-on-a-rental-property",
    "encodingFormat": "application/json"
  },
  "json": {
    "type": "answer",
    "question": "How much profit should you make on a rental property?",
    "shortAnswer": "Target $150–$300 of monthly cash flow per unit after all expenses including reserves, and an 8–12% cash-on-cash return. Anything under $100 per unit leaves no cushion for a single vacancy or a water heater replacement.",
    "tableTitle": "Rental profitability targets per unit",
    "columns": [
      "Metric",
      "Target",
      "Marginal"
    ],
    "rows": [
      {
        "label": "Monthly cash flow per unit",
        "value": "$150–$300",
        "note": "Under $100"
      },
      {
        "label": "Cash-on-cash return",
        "value": "8–12%",
        "note": "Under 5%"
      },
      {
        "label": "Operating expense ratio",
        "value": "35–45% of rent",
        "note": "Over 55%"
      },
      {
        "label": "Capex reserve",
        "value": "5–10% of rent",
        "note": "Skipped entirely"
      },
      {
        "label": "Vacancy allowance",
        "value": "5–8% of rent",
        "note": "Assumed zero"
      }
    ],
    "context": "Most rental deals that lose money were modelled without reserves. Rent minus mortgage is not cash flow — a realistic model subtracts management, insurance, property tax, maintenance, vacancy and capital reserve, and that stack typically consumes 40–50% of gross rent on older single-family stock. Appreciation and principal paydown are real returns, but they are illiquid, so a property that only works if it appreciates is a speculation with a tenant attached. Underwrite to cash flow and treat everything else as upside.",
    "methodology": "Cash-flow modelling using the 50% expense rule as a sanity check against itemised operating costs, with cash-on-cash calculated on total cash invested including closing costs.",
    "dateModified": "2026-08-12",
    "relatedCalculators": [
      {
        "label": "Rental Property ROI Calculator",
        "to": "/rental-property-roi-calculator"
      },
      {
        "label": "Cap Rate Calculator",
        "to": "/cap-rate-calculator"
      },
      {
        "label": "Mortgage Payment Calculator",
        "to": "/mortgage-payment-calculator"
      }
    ],
    "relatedReading": []
  }
}