What rent does a $400,000 rental need?
About $3,175/month USD to break even, and $3,425/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% | $2,925 / $3,175 | $2,800 / $3,025 |
| 6.5% | $3,050 / $3,300 | $2,900 / $3,150 |
| 7% | $3,175 / $3,425 | $3,025 / $3,275 |
| 7.5% | $3,300 / $3,550 | $3,150 / $3,375 |
The 1% rule would ask for $4,000/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
United States · USD
Monthly cash flow
$216/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $216/mo
- Cap rate
- 7.03%
- DSCR
- 1.10
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