Rent-to-Price Ratio Calculator

The 1% rule states that monthly rent should equal at least 1% of the purchase price for a property to cash flow positively. A $200K property needs $2,000/month rent to meet the 1% rule. In expensive Florida markets, the 0.75% rule is a more realistic threshold.

The 1% rule is rare in Florida's primary markets. In Miami, Tampa, and Orlando, most properties hit 0.5–0.75% ratios. Markets meeting the 1% rule in Florida include Ocala, Daytona Beach, Pensacola, Gainesville (near UF), and parts of Jacksonville — where prices are lower relative to rents.

GRM = Purchase Price ÷ Annual Gross Rent. A GRM of 10–12 is considered strong for Florida residential properties. Lower is better — a GRM of 8 means you'd recoup the purchase price in 8 years of gross rent. GRM ignores expenses; use cap rate for a more accurate comparison.

In Florida's primary markets: 0.45–0.65% (Miami, Naples, Boca Raton). Mid-markets: 0.65–0.85% (Tampa, Orlando, Fort Lauderdale). Secondary markets: 0.85–1.1% (Jacksonville, Ocala, Gainesville, Pensacola, Daytona). The 1% rule is achievable in secondary FL markets.

Divide purchase price by annual gross rent for each property. The lower the GRM, the better the income relative to price. Compare properties in the same market — GRM is most useful for quick screening before running a full cash flow analysis. A GRM of 10 or below is typically attractive in Florida.