In residential real estate investing, the 1% Rule is a widely used screening metric that helps investors quickly identify properties with strong rent-to-price ratios. The rule suggests that monthly gross rent should equal at least 1% of the purchase price.
While useful, the 1% rule is only an initial filter—not a measure of true cash flow. Investors rely on it to narrow thousands of listings into a focused set of markets and properties that deserve closer scrutiny of expenses, financing, and local conditions.
Each week, we analyze active listing data to surface the markets with the highest volume of properties currently meeting this 1% benchmark.
How to interpret this report: The 1% rule is a market signal for gross yield (rent relative to price). Final investment performance depends on expenses, financing, and execution.
The table below ranks cities by the number of active listings where estimated gross monthly rent meets or exceeds 1% of the asking price. These markets may be attractive to yield-focused investors looking to source deals efficiently—before running full cash-flow models.
| City | Active 1% Listings | Median Price | Median Monthly Rent |
|---|---|---|---|
| Detroit, MI | 1,558 | $85,000 | $1,289 |
| Houston, TX | 534 | $170,000 | $1,955 |
| Memphis, TN | 494 | $90,000 | $1,170 |
| San Antonio, TX | 465 | $140,000 | $1,637 |
| Philadelphia, PA | 449 | $130,000 | $1,638 |
| Cleveland, OH | 447 | $116,000 | $1,497 |
| Birmingham, AL | 312 | $85,000 | $1,159 |
| Chicago, IL | 299 | $150,000 | $2,170 |
| Toledo, OH | 283 | $84,160 | $1,129 |
| Jacksonville, FL | 277 | $110,000 | $1,282 |
| New Orleans, LA | 273 | $165,000 | $2,061 |
| Shreveport, LA | 261 | $54,900 | $913 |
| Pittsburgh, PA | 245 | $135,000 | $1,793 |
| Macon, GA | 212 | $67,450 | $1,092 |
| Kansas City, MO | 209 | $105,000 | $1,290 |
| Indianapolis, IN | 207 | $129,900 | $1,620 |
Identifying yield-oriented markets is only the first step. To build a consistent pipeline, investors rely on a clear Buy Box—the specific criteria a deal must meet before it’s worth deeper analysis.
Rentometer Yield Tracker is designed to do the heavy lifting. Instead of manually scanning listings, you can define your buy box and quickly spot which active listings meet your thresholds—then decide which ones are worth a full cash flow and underwriting review.
Reminder: Gross yield is not the same as cash flow.
Cash flow depends on financing, taxes, insurance, maintenance, CapEx, management, and vacancy. Use this report to find candidates faster—then underwrite the winners.
The 1% rule is a screening tool, not a comprehensive investment analysis. When a market or property clears this initial filter, your next step is to validate the deal with deeper due diligence.
We refresh this report every week using active listing data to help you track where rent-to-price opportunities are emerging—or fading. 📌 Bookmark this page and check back weekly to stay on top of market trends.