Enter the purchase price into the calculator to determine the monthly rent according to the 2% Rule.

## 2% Rule Real Estate Formula

The following formula is used to calculate the monthly rent according to the 2% Rule in real estate.

MR = P * 0.02

Variables:

• MR is the monthly rent ($) • P is the purchase price of the property ($)

To calculate the monthly rent according to the 2% Rule, multiply the purchase price of the property by 0.02. This will give you the minimum monthly rent that should be charged to meet the 2% rule.

## What is a 2% Rule Real Estate?

The 2% Rule in real estate is a guideline often used by real estate investors to determine if a potential investment property will generate a good return. According to this rule, the monthly rent of a property should be at least 2% of the purchase price. For example, if a property is purchased for $100,000, the monthly rent should be at least$2,000 to meet the 2% rule. This rule helps investors to estimate the profitability of an investment property.