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1 Percent Rule Formula

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Minimum Monthly Rent refers to the lowest amount of money a tenant must pay each month to occupy a property under the terms of a lease agreement. Check FAQs

MMR = 0.01 \cdot PP

MMR - Minimum Monthly Rent?PP - Purchase Price?

1 Percent Rule Example

With values

With units

Only example

Here is how the 1 Percent Rule equation looks like with Values.

Here is how the 1 Percent Rule equation looks like with Units.

Here is how the 1 Percent Rule equation looks like.

1790 = 0.01 \cdot 179000

1790 = 0.01 \cdot 179000

1790 = 0.01 \cdot 179000

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1 Percent Rule Solution

Follow our step by step solution on how to calculate 1 Percent Rule?

FIRST Step Consider the formula

MMR = 0.01 \cdot PP

Next Step Substitute values of Variables

∴

MMR = 0.01 \cdot 179000

Next Step Prepare to Evaluate

∴

MMR = 0.01 \cdot 179000

LAST Step Evaluate

∴

MMR = 1790

1 Percent Rule Formula Elements

Variables

Minimum Monthly Rent

Minimum Monthly Rent refers to the lowest amount of money a tenant must pay each month to occupy a property under the terms of a lease agreement.

Symbol: MMR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Minimum Monthly Rent

Purchase Price

Purchase Price is the amount of money paid to acquire an asset, property, or goods, typically agreed upon between the buyer and seller in a transaction.

Symbol: PP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Purchase Price

Other formulas in Mortgage and Real Estate category

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Go Vacancy Rate

VR = \frac{U Vacant \cdot 100}{U Total}

Go Gross Income Multiplier

GIM = \frac{PSP}{EGI}

Go Effective Gross Income

EGI = GRI + OI - VBD

How to Evaluate 1 Percent Rule?

1 Percent Rule evaluator uses Minimum Monthly Rent = 0.01*Purchase Price to evaluate the Minimum Monthly Rent, The 1 Percent Rule is a guideline in real estate investing suggesting that a property's monthly rental income should be at least 1 percent of its total purchase price. Minimum Monthly Rent is denoted by MMR symbol.

How to evaluate 1 Percent Rule using this online evaluator? To use this online evaluator for 1 Percent Rule, enter Purchase Price (PP) and hit the calculate button.

FAQs on 1 Percent Rule

What is the formula to find 1 Percent Rule?

The formula of 1 Percent Rule is expressed as Minimum Monthly Rent = 0.01*Purchase Price. Here is an example- 1790 = 0.01*179000.

How to calculate 1 Percent Rule?

With Purchase Price (PP) we can find 1 Percent Rule using the formula - Minimum Monthly Rent = 0.01*Purchase Price.

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