1% Rule / 2% Rule Quick Check
Fast screening test: does a rental property's monthly rent equal 1% or 2% of its purchase price?
The 1% rule is an American shorthand: monthly rent should equal at least 1% of the purchase price for a deal to likely cash flow. Most Canadian markets fail this test today — useful as a screening filter, not as a buy/no-buy decision.
Rent-to-price ratio
0.51%
Fails 1% rule — likely negative cash flow at today’s rates
For a complete picture, run the numbers through the Rental Property Cash Flow Calculator — interest rates, taxes, condo fees, and vacancy all affect the actual result.
The information presented on HousingPortal.ca is intended for general illustrative purposes only. While the information is believed to be reliable, it cannot be guaranteed for accuracy, completeness, or currency. Neither HousingPortal.ca and its employees, nor any other party identified in this guide/report, assumes any liability for the information provided. The views and opinions expressed by the analysts at HousingPortal.ca are their own and should not be considered as investment advice. It is recommended that you seek the advice of a licensed real estate professional before making any decisions regarding real estate investments.