What rent does a $500,000 rental need?
About $3,975/month USD to break even, and $4,200/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% | $3,675 / $3,900 | $3,500 / $3,725 |
| 6.5% | $3,825 / $4,050 | $3,625 / $3,875 |
| 7% | $3,975 / $4,200 | $3,775 / $4,025 |
| 7.5% | $4,125 / $4,375 | $3,925 / $4,175 |
The 1% rule would ask for $5,000/month. It's a quick screen only — taxes, insurance and the rate decide the real answer.
Quick check
United States · USD
Monthly cash flow
$200/mo
Preliminary verdict
Proceed with caution
Cash flow is positive, but the cushion over the mortgage is thin.
- Cash flow
- $200/mo
- Cap rate
- 6.87%
- DSCR
- 1.08
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