what is the one percent rule 
the one percent rule sometimes stylized as the 1 rule is used to determine if the monthly rent earned from a piece of investment property will exceed that property s monthly mortgage payment the goal of the rule is to ensure that the rent will be greater than or at worst equal to the mortgage payment so the investor at least breaks even on the property the one percent rule can provide a baseline for establishing the level of rent that commercial property owners charge on real estate space this rent level can apply to all types of tenants in both residential and commercial real estate properties purchasing a piece of property for investment requires a thorough analysis of numerous factors the one percent rule is just one measurement tool that can help an investor gauge the risk and potential gain that might be achieved by investing in a property 