Rental Property Rules of Thumb: 1%, 2%, and 50% Rules
Here are the rental property rules of thumb investors use most. Investors use quick rules of thumb to screen rental properties. They are a starting point, not a decision. Here is what each one means and how to run real numbers on a Jacksonville-area rental.
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The 1% Rule
Monthly rent should be at least 1% of the purchase price. A home bought for $300,000 would need about $3,000 a month in rent to meet it.
The 2% Rule
A stricter version: monthly rent at 2% of the price. It is rarely met in most Northeast Florida neighborhoods today, so don’t rule a property out on this alone.
The 50% Rule
Assume about half of the rent will go to operating expenses, not counting the mortgage: taxes, insurance, maintenance, vacancy, HOA, and management. What’s left has to cover the mortgage.
The 80/20 Rule in Property Management
A small share of tenants or properties often causes most of the problems. Strong screening and clear leases help prevent that.
Run the Real Numbers
Florida insurance, HOA dues, and flood zones can move the math a lot. Start with an accurate rent estimate, then list your real costs.
Financing a rental? Our affiliated mortgage broker explains DSCR loans, which qualify based on rental income.
Management Packages
Three plans built around how involved you want to be, your income goals, and your property’s needs.
Essential Package
10% of monthly rent
+ 75% of first month’s rent (leasing fee)
For owners who want trusted systems and basic support.
- Rental pricing analysis using CRM tools
- Preferred vendors (handymen, HVAC, plumbers)
- Full tenant screening: credit, income, background
- Online rent collection and owner portal
- Quarterly drive-by photo updates
- Monthly reporting and year-end tax documents
Professional Package
15% of monthly rent
+ 75% of first month’s rent (leasing fee)
For owners who want full leasing support and better oversight.
- Everything in Essential
- Listing on major rental platforms with professional photos
- Tenant showings scheduled and conducted
- Full tenant placement and lease signing
- Move-in and move-out coordination
- Monthly drive-by photo updates
- Maintenance fully coordinated by our team
Premium Package
20% of monthly rent
+ 75% of first month’s rent (leasing fee)
For out-of-state owners and investors who want full peace of mind.
- Everything in Professional
- Interior and exterior inspections twice a year with photo reports
- Eviction coordination (notices, filings, court)
- 24/7 emergency response
- Utility setup and tracking
- Dedicated Owner Success Manager
- Optional landscaping, pest control, and pool service
Own several rentals? Ask about reduced rates, as low as 8%, for multi-home investors. See full package details.
Why Homeowners Choose Rental Property Partners
- Veteran-owned and female-led local team that lives in the communities we serve
- Military-friendly: we work with service members renting out their homes after PCS orders
- Backed by an affiliated real estate brokerage and title company if you ever decide to sell
- Clear pricing with no surprise fees
Rental Property Rules of Thumb FAQ
Is the 1% rule realistic in Jacksonville?
It depends on the area and price point. Some neighborhoods come close, and others are better for appreciation.
What expenses do investors forget?
Insurance increases, vacancy, turnover costs, and capital repairs like roofs and AC systems.
Have questions? Call us or see our rental property rules of thumb options and pricing.
Talk to a Local Property Manager
Get your free rent estimate or call (904) 478-7368. We manage homes across Jacksonville, St. Johns, Clay, and Nassau counties, including Nocatee, St. Augustine, Orange Park, Jacksonville Beach, and Jacksonville.
Our Family of Companies
- Homes for sale in St. Augustine and Nocatee with Tanya Cosmini, Broker/Owner
- Realty ONE Group Elevate, a full-service real estate brokerage with offices in Jacksonville and St. Augustine
- Title Company of Florida, title insurance, escrow, and closings statewide
Affiliated business disclosure: Realty ONE Group Elevate is owned by Tanya Cosmini. Title Company of Florida is owned by her husband, Sam Gorniak, and Rental Property Partners is owned within the same family. Because of these family relationships, the owners may benefit when you use more than one of these companies. You are not required to use any of them and are free to choose other providers.
Rental Property Partners. Rental estimates are not guarantees of rent or occupancy. This page is general information, not legal or tax advice. Equal Housing Opportunity.
Rental Property Partners’ owner, Sam Gorniak, is a loan officer (NMLS #1954721) at Atlantic Trust Mortgage (NMLS #239592), which is not owned by or affiliated with Rental Property Partners. You are not required to use it.