Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Properties passing the 2% rule
1
Property 1: rent-to-price ratio
1.42%
Property 2: rent-to-price ratio
1.14%
Property 3: rent-to-price ratio
2.18%
Property 1: rent needed to hit 2%
$1,900
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How to use this
- 1Enter property 1 price ($).
- 2Enter property 1 monthly rent ($).
- 3Enter property 2 price ($).
- 4Enter property 2 monthly rent ($).
- 5Enter property 3 price ($).
- 6Enter property 3 monthly rent ($).
- 7Read your properties passing the 2% rule on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
The 2% rule is a quick cash-flow screen used mainly for lower-priced, higher cash-flow markets: monthly rent should equal at least 2% of purchase price. It's stricter and less commonly achievable than the well-known 1% rule, and it's meant purely as a fast first-pass filter, not a substitute for full underwriting. This tool is built for screening several candidate properties at once against the 2% threshold and shows exactly how much rent each would need to clear it, or how far below the threshold it currently sits, which is more useful when you're triaging a list of ten listings down to two worth a real look.
Worked example
Using the values the calculator loads with:
Inputs
- Property 1 price: 95000 $
- Property 1 monthly rent: 1350 $
- Property 2 price: 140000 $
- Property 2 monthly rent: 1600 $
- Property 3 price: 78000 $
- Property 3 monthly rent: 1700 $
Results
- Properties passing the 2% rule: 1
- Property 1: rent-to-price ratio: 1.42%
- Property 2: rent-to-price ratio: 1.14%
- Property 3: rent-to-price ratio: 2.18%
- Property 1: rent needed to hit 2%: $1,900
What each field means
Inputs
- Property 1 price ($)
- The property 1 price used in the calculation, measured in $. Starts at 95000 $ so you have a working example on load.
- Property 1 monthly rent ($)
- The property 1 monthly rent used in the calculation, measured in $. Starts at 1350 $ so you have a working example on load.
- Property 2 price ($)
- The property 2 price used in the calculation, measured in $. Starts at 140000 $ so you have a working example on load.
- Property 2 monthly rent ($)
- The property 2 monthly rent used in the calculation, measured in $. Starts at 1600 $ so you have a working example on load.
- Property 3 price ($)
- The property 3 price used in the calculation, measured in $. Starts at 78000 $ so you have a working example on load.
- Property 3 monthly rent ($)
- The property 3 monthly rent used in the calculation, measured in $. Starts at 1700 $ so you have a working example on load.
Results
- Properties passing the 2% rule
- Returned as a whole number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Property 1: rent-to-price ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Property 2: rent-to-price ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Property 3: rent-to-price ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Property 1: rent needed to hit 2%
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How is this different from the 1% rule?
The 1% rule sets a lower bar (rent ≥ 1% of price) and is achievable in more markets; the 2% rule is a much stricter screen mostly found in lower-priced Midwest and Southeast markets with sub-$150,000 purchase prices. Very few properties in expensive coastal metros will ever clear 2%, which is fine — it's a market-dependent screen, not a universal standard.
Does passing the 2% rule mean the deal is good?
No — it's a first-pass filter only. A property clearing 2% in a market with high property taxes, high insurance, deferred maintenance, or declining population can still cash-flow negative once you run full numbers. Always follow up with a real cash flow and cap rate analysis before making an offer.
Why do lower-priced properties clear this rule more easily?
Rent doesn't scale linearly with purchase price the way you might expect — a $75,000 house and a $300,000 house in the same metro often rent for much closer to each other than their price difference suggests, because rent is capped by what local tenants can actually afford to pay, not by what the house cost.
What should I check next after a property passes?
Run full cash flow with realistic vacancy, maintenance, capex, and management reserves, verify the rent estimate against actual comparable listings (not just a Zestimate), and inspect the property or get a contractor's opinion on deferred maintenance — cheap properties clearing 2% often need real capital investment that a headline ratio hides.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). 2% Rule Portfolio Screening Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/two-percent-rule-check
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/two-percent-rule-check" target="_blank" rel="noopener">2% Rule Portfolio Screening Calculator — RevenueLab</a> (2026).</p>
Source: [2% Rule Portfolio Screening Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/two-percent-rule-check) (2026).