Does the 1% Rule Still Work in 2025?

The 1% rule says monthly rent should be at least 1% of purchase price. In 1995 it was a useful screen; in 2025, virtually no major-metro property clears that bar.

Modern investors should reset to cash-on-cash targets: 8–10% for stabilized rentals, 12%+ for value-add or BRRRR deals.

Use the 1% rule as a directional sniff test only. Never reject a deal solely because it fails — and never accept one solely because it passes.