Calculate gross and net rental yield for investment properties. Compare yield across multiple properties.
| Yield | Assessment | Typical Market |
|---|---|---|
| 2-4% | Low yield, appreciation play | SF, NYC, LA |
| 5-7% | Moderate, balanced | Suburbs, mid-tier cities |
| 8-10% | High yield, cash flow focused | Midwest, Southern cities |
| 10%+ | Very high, check risk factors | Emerging/declining areas |
Property taxes, insurance, maintenance (budget 1-2% of value), property management (8-10% of rent), HOA fees, vacancy loss, and repairs.
The 1% rule says monthly rent should be at least 1% of the purchase price. For a $200k property, target $2,000/month rent. It is a quick screening tool.
Enter the property purchase price, monthly rent, and annual expenses. The calculator shows gross yield, net yield, and compares to alternative investments.
Gross Yield = (Annual Rent / Purchase Price) Γ 100%. Net Yield = (Annual Rent β Annual Expenses) / (Purchase Price + Acquisition Costs) Γ 100%.
Property $250,000, rent $2,000/mo ($24,000/yr), expenses $6,000/yr: Gross yield = 9.6%. Net yield = $18,000/$250,000 = 7.2%.
Good rental yield varies by market: 5-8% is typical for residential. Compare net yield (not gross β expenses matter). Factor in management costs (8-10% of rent) if not self-managing.