What rent does a $850,000 rental need?
About $6,750/month USD to break even, and $6,975/month for $200 of monthly cash flow — with 20% down at a 7% rate.
Assumes typical costs: property tax 1.2% and insurance 0.5% of the price per year, 5% vacancy, 10% of rent for repairs, and a 30-year loan. Plug in your real numbers on the right.
| Rate | 20% down: break even / +$200 | 25% down: break even / +$200 |
|---|---|---|
| 6% | $6,225 / $6,450 | $5,925 / $6,150 |
| 6.5% | $6,475 / $6,725 | $6,175 / $6,400 |
| 7% | $6,750 / $6,975 | $6,425 / $6,650 |
| 7.5% | $7,025 / $7,250 | $6,675 / $6,900 |
The 1% rule would ask for $8,500/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
United States · USD
Monthly cash flow
$201/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $201/mo
- Cap rate
- 6.67%
- DSCR
- 1.04
Counted
Mortgage (30-yr), property tax ~1.2%/yr, insurance ~0.5%/yr, 5% vacancy, 10% of rent for repairs.
Not counted yet
Closing costs, HOA fees, a property manager, and your actual tax and insurance quotes. Add them in the full analysis.
How we calculate · An estimate to screen deals, not financial advice.
Other prices
Related: rental property calculator · DSCR calculator · cap rate calculator