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Gross Rent Multiplier and 1% Rule by Metro: 100 Metros, 2026

By Jorge··21 min read

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Quick Answer

As of October 20, 2026, not one of the 100 largest US metropolitan areas passes the 1% rule on public data, and at today's mortgage rates only 2 of them cover a 75% loan on the Census median rent. The Census Bureau's American Community Survey (ACS, 2020-2024 5-year estimates) puts the median metro at a gross rent of $1,404 a month against a median home value of $338,950: rent equal to 0.43% of value and a gross rent multiplier (GRM, value divided by 12 times monthly rent) of 19.5. The highest rent-to-value ratio is 0.68% in McAllen-Edinburg-Mission, Texas (GRM 12.3); the lowest is 0.20% in San Jose (GRM 42.5). HUD's FY2027 two-bedroom Fair Market Rents, effective October 1, 2026, lift the best ratio only to 0.80% (Syracuse, New York). Freddie Mac's 30-year average was 7.40% for the week of October 15, 2026; adding the 0.78-point gap between DSCR-type loans and Freddie Mac's survey on our DSCR rates page gives 8.18% (our arithmetic, an estimate, not a quote). At 8.18%, 75% loan-to-value and 95% occupancy, rent must be at least 0.589% of value for the rent to cover principal and interest (DSCR 1.0); 2 metros clear that on Census median rent (McAllen 1.15, El Paso 1.02) and 16 on HUD two-bedroom rents. Add the median property tax and none of them does. This is a screening table built from medians, not a quote for any property. This is analysis of public documents, not investment, legal or tax advice.

Key Takeaways

  • The 1% rule is a market of none: 0 of 100 metros reach it. Rent is 0.43% of value at the median metro, 0.68% at best (McAllen-Edinburg-Mission, Texas), 0.20% at worst (San Jose). Census ACS 2020-2024 5-year, tables B25064 and B25077; ratios are our arithmetic.
  • GRM runs from 12.3 (McAllen) to 42.5 (San Jose); the median metro is 19.5. A 1% rent-to-value ratio is a GRM of 8.3, so the median metro would need rent 2.3 times higher to qualify (our arithmetic). Five metros are above 30: San Jose, San Francisco, Honolulu, Los Angeles and San Diego.
  • Freddie Mac's 30-year average was 7.40% on October 15, 2026 (6.27% a year earlier). Our estimate for a DSCR-type loan is 8.18%: the 7.40% plus 0.78 points, the 2025 gap in federal mortgage data on our DSCR rates page.
  • At 8.18%, 75% loan-to-value and 95% occupancy, monthly rent has to be 0.589% of value for a DSCR of 1.0, principal and interest only (0.629% at 80% loan-to-value). The median metro scores 0.72 on Census rent and 0.86 on HUD rent.
  • Two metros pass 1.0 on Census median rent at 8.18% (McAllen 1.15, El Paso 1.02) and 16 on HUD two-bedroom Fair Market Rents, led by Syracuse (1.35). At 7.40% the counts are 4 and 33. Our arithmetic, no taxes or insurance.
  • Property tax matters as much as the rate: with the ACS median real estate tax added to the payment, no metro reaches 1.0 on either rent at 8.18% with a 95% collection rate (3 do on HUD rent at 7.40%). Lenders count taxes and insurance, so the table is a ceiling, not a forecast.

CSV · 807 rows

Gross rent multiplier, 1% rule ratio and implied DSCR for the 100 largest US metros, 2026

807 rows: Census ACS 2020-2024 5-year median gross rent, home value and real estate taxes for the 100 largest metros, HUD FY2027 two-bedroom Fair Market Rents, and our derived GRM, rent-to-value ratio and implied DSCR at stated assumptions.

What the two rules measure, and what they need to be today

The gross rent multiplier is price divided by annual gross rent: a $300,000 house that rents for $2,500 a month has a GRM of 10. The 1% rule says monthly rent should be at least 1% of the price, which is the same screen written the other way (a GRM of 8.3 or lower). Both ignore taxes, insurance, vacancy and the loan, so neither says whether a property can carry its debt. The measure a DSCR lender applies does: debt service coverage ratio (DSCR) is rent divided by the monthly payment, and our DSCR loan calculator explains the lender version, rent divided by principal, interest, taxes and insurance.

That lets us ask what the 1% rule is really standing in for. The monthly payment on a 30-year loan at 8.18% is 0.7464% of the loan; on a 75% loan that is 0.5598% of the property value. Dividing by our 95% occupancy gives a break-even rent of 0.589% of value for a DSCR of 1.0 on principal and interest alone (0.629% at 80% loan-to-value; 0.547% at the 7.40% Freddie Mac rate with a 75% loan). Taxes, insurance and repairs push the figure toward the 1% rule, which is why it survives as a rule of thumb (our arithmetic).

Loan-to-valueAt 7.40% (Freddie Mac 30-year, Oct 15, 2026)At 8.18% (estimated DSCR-type rate)Equivalent GRM at 8.18%
75%0.547%0.589%14.1
80%0.583%0.629%13.3

The inputs and where they come from

  • Rent and value: Census Bureau ACS, 2020-2024 5-year estimates (the 2024 release of the 5-year file), table B25064 (median gross rent) and B25077 (median value of owner-occupied units), for the 100 largest metropolitan statistical areas by the Census Bureau's July 1, 2025 population estimate, excluding Puerto Rico. The Census Bureau said on August 4, 2026 that the release date for the 2025 ACS 1-year estimates is being determined; we found no newer 5-year file, so this is the latest.
  • HUD rent: Fair Market Rents for fiscal year 2027, effective October 1, 2026, two-bedroom. HUD describes its calculations as its “best effort to estimate the 40th percentile gross rent paid by recent movers into standard quality units in each FMR area”. The notice makes them effective October 1, 2026 “unless HUD receives a valid request for reevaluation” for an area. Where a metro contains several HUD areas (marked with an asterisk), we use the area with the most people.
  • Taxes: ACS table B25103, median real estate taxes paid by owner-occupied units.
  • Rate: Freddie Mac's Primary Mortgage Market Survey, 7.40% for the week of October 15, 2026, unchanged from the week before and against 6.27% a year earlier. The survey describes a prime owner-occupied purchase, not a rental. The 0.78-point gap is from our DSCR loan rates page: the 2025 median note rate on DSCR-type loans in federal HMDA data (7.375%) minus Freddie Mac's 2025 average (6.595%). That page's headline was written when the survey read 7.28%; we use the newer reading. See also investment property mortgage rates.
  • Assumptions (all ours): 30-year fully amortizing loan, 75% loan-to-value (the median investor purchase in 2025 federal data was 25% down, see our down payment study), 95% of scheduled rent collected, and no taxes, insurance or HOA unless a column says so.

The 100 largest metros: GRM, 1% ratio and implied DSCR

Metros are in order of population (July 1, 2025 estimate). Every column other than the two rents and the value is our arithmetic. DSCR here is 95% of twelve months of rent divided by twelve months of principal and interest on 75% of the median value at 8.18%.

Metro (population rank)Median gross rentMedian valueGRM (our arithmetic)Rent / value (our arithmetic)DSCR on ACS rent (our arithmetic)HUD 2BR FMRDSCR on HUD FMR (our arithmetic)
1. New York-Newark-Jersey City, NY-NJ$1,830$614,20028.00.30%0.51$2,971*0.82
2. Los Angeles-Long Beach-Anaheim, CA$2,063$871,30035.20.24%0.40$2,964*0.58
3. Chicago-Naperville-Elgin, IL-IN$1,430$323,00018.80.44%0.75$2,011*1.06
4. Dallas-Fort Worth-Arlington, TX$1,614$359,50018.60.45%0.76$1,807*0.85
5. Houston-Pasadena-The Woodlands, TX$1,430$298,00017.40.48%0.81$1,497*0.85
6. Atlanta-Sandy Springs-Roswell, GA$1,672$367,60018.30.45%0.77$1,762*0.81
7. Washington-Arlington-Alexandria, DC-VA-MD-WV$2,027$579,90023.80.35%0.59$2,438*0.71
8. Miami-Fort Lauderdale-West Palm Beach, FL$1,869$443,30019.80.42%0.72$2,564*0.98
9. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD$1,480$351,90019.80.42%0.71$1,8600.90
10. Phoenix-Mesa-Chandler, AZ$1,702$440,90021.60.39%0.66$1,7340.67
11. Boston-Cambridge-Newton, MA-NH$2,023$646,30026.60.31%0.53$3,008*0.79
12. Riverside-San Bernardino-Ontario, CA$1,846$536,30024.20.34%0.58$2,1030.67
13. San Francisco-Oakland-Fremont, CA$2,474$1,140,70038.40.22%0.37$2,805*0.42
14. Detroit-Warren-Dearborn, MI$1,207$249,70017.20.48%0.82$1,459*0.99
15. Seattle-Tacoma-Bellevue, WA$2,000$717,50029.90.28%0.47$2,549*0.60
16. Minneapolis-St. Paul-Bloomington, MN-WI$1,440$374,00021.60.39%0.65$1,734*0.79
17. Tampa-St. Petersburg-Clearwater, FL$1,628$345,10017.70.47%0.80$1,9170.94
18. San Diego-Chula Vista-Carlsbad, CA$2,246$854,70031.70.26%0.45$2,8230.56
19. Denver-Aurora-Centennial, CO$1,874$603,80026.80.31%0.53$2,1690.61
20. Orlando-Kissimmee-Sanford, FL$1,760$369,80017.50.48%0.81$1,9590.90
21. Charlotte-Concord-Gastonia, NC-SC$1,473$356,40020.20.41%0.70$1,785*0.85
22. Baltimore-Columbia-Towson, MD$1,611$391,30020.20.41%0.70$2,0060.87
23. St. Louis, MO-IL$1,113$244,80018.30.45%0.77$1,349*0.94
24. San Antonio-New Braunfels, TX$1,363$278,80017.00.49%0.83$1,441*0.88
25. Austin-Round Rock-San Marcos, TX$1,726$465,00022.50.37%0.63$1,8170.66
26. Portland-Vancouver-Hillsboro, OR-WA$1,724$559,40027.00.31%0.52$1,8780.57
27. Sacramento-Roseville-Folsom, CA$1,819$589,50027.00.31%0.52$2,201*0.63
28. Pittsburgh, PA$1,053$215,00017.00.49%0.83$1,389*1.10
29. Las Vegas-Henderson-North Las Vegas, NV$1,626$431,00022.10.38%0.64$1,6860.66
30. Cincinnati, OH-KY-IN$1,105$258,60019.50.43%0.73$1,442*0.95
31. Kansas City, MO-KS$1,249$287,30019.20.43%0.74$1,546*0.91
32. Columbus, OH$1,274$300,80019.70.42%0.72$1,602*0.90
33. Indianapolis-Carmel-Greenwood, IN$1,191$265,90018.60.45%0.76$1,536*0.98
34. Nashville-Davidson--Murfreesboro--Franklin, TN$1,528$409,60022.30.37%0.63$1,798*0.74
35. Cleveland, OH$1,050$215,40017.10.49%0.83$1,274*1.00
36. San Jose-Sunnyvale-Santa Clara, CA$2,840$1,447,80042.50.20%0.33$3,272*0.38
37. Virginia Beach-Chesapeake-Norfolk, VA-NC$1,478$340,90019.20.43%0.74$1,667*0.83
38. Jacksonville, FL$1,513$343,40018.90.44%0.75$1,694*0.84
39. Providence-Warwick, RI-MA$1,307$422,50026.90.31%0.53$1,879*0.75
40. Raleigh-Cary, NC$1,573$418,40022.20.38%0.64$1,6890.69
41. Milwaukee-Waukesha, WI$1,139$306,40022.40.37%0.63$1,2630.70
42. Oklahoma City, OK$1,124$230,00017.10.49%0.83$1,264*0.93
43. Louisville/Jefferson County, KY-IN$1,116$248,70018.60.45%0.76$1,276*0.87
44. Richmond, VA$1,447$353,50020.40.41%0.69$1,651*0.79
45. Memphis, TN-MS-AR$1,220$245,90016.80.50%0.84$1,301*0.90
46. Salt Lake City-Murray, UT$1,583$515,40027.10.31%0.52$1,615*0.53
47. Fresno, CA$1,392$389,40023.30.36%0.61$1,685*0.73
48. Birmingham, AL$1,172$240,20017.10.49%0.83$1,375*0.97
49. Grand Rapids-Wyoming-Kentwood, MI$1,202$285,30019.80.42%0.72$1,630*0.97
50. Hartford-West Hartford-East Hartford, CT$1,416$333,50019.60.42%0.72$1,9330.98
51. Buffalo-Cheektowaga, NY$1,057$226,10017.80.47%0.79$1,4231.07
52. Tucson, AZ$1,212$319,70022.00.38%0.64$1,4050.75
53. Tulsa, OK$1,078$221,70017.10.49%0.83$1,229*0.94
54. Rochester, NY$1,143$204,60014.90.56%0.95$1,4161.17
55. Greenville-Anderson-Greer, SC$1,150$264,60019.20.43%0.74$1,507*0.97
56. Omaha, NE-IA$1,192$268,60018.80.44%0.75$1,450*0.92
57. Urban Honolulu, HI$2,083$897,50035.90.23%0.39$2,5420.48
58. Bridgeport-Stamford-Danbury, CT$1,875$564,50025.10.33%0.56$2,3990.72
59. New Orleans-Metairie, LA$1,217$260,20017.80.47%0.79$1,480*0.97
60. Knoxville, TN$1,145$290,20021.10.39%0.67$1,475*0.86
61. North Port-Bradenton-Sarasota, FL$1,747$402,20019.20.43%0.74$2,1880.92
62. Bakersfield-Delano, CA$1,300$338,30021.70.38%0.65$1,6560.83
63. Albuquerque, NM$1,156$287,80020.70.40%0.68$1,3840.82
64. McAllen-Edinburg-Mission, TX$957$140,90012.30.68%1.15$1,0171.22
65. Albany-Schenectady-Troy, NY$1,280$285,90018.60.45%0.76$1,7111.02
66. Charleston-North Charleston, SC$1,605$377,50019.60.43%0.72$1,8840.85
67. Baton Rouge, LA$1,135$241,10017.70.47%0.80$1,149*0.81
68. Worcester, MA$1,426$423,70024.80.34%0.57$2,043*0.82
69. Allentown-Bethlehem-Easton, PA-NJ$1,365$300,80018.40.45%0.77$1,839*1.04
70. El Paso, TX$1,079$180,20013.90.60%1.02$1,146*1.08
71. Columbia, SC$1,193$232,40016.20.51%0.87$1,226*0.90
72. Cape Coral-Fort Myers, FL$1,712$362,20017.60.47%0.80$1,8350.86
73. Lakeland-Winter Haven, FL$1,363$266,50016.30.51%0.87$1,6081.02
74. Boise City, ID$1,487$468,90026.30.32%0.54$1,540*0.56
75. Oxnard-Thousand Oaks-Ventura, CA$2,317$822,70029.60.28%0.48$2,4240.50
76. Dayton-Kettering-Beavercreek, OH$1,039$201,10016.10.52%0.88$1,2481.05
77. Stockton-Lodi, CA$1,734$530,70025.50.33%0.55$2,0150.64
78. Greensboro-High Point, NC$1,093$231,00017.60.47%0.80$1,271*0.93
79. Colorado Springs, CO$1,699$461,80022.70.37%0.62$1,621*0.60
80. Little Rock-North Little Rock-Conway, AR$1,055$214,10016.90.49%0.84$1,121*0.89
81. Provo-Orem-Lehi, UT$1,534$535,50029.10.29%0.49$1,3630.43
82. Des Moines-West Des Moines, IA$1,150$267,40019.40.43%0.73$1,360*0.86
83. Deltona-Daytona Beach-Ormond Beach, FL$1,500$324,30018.00.46%0.78$1,673*0.88
84. Kiryas Joel-Poughkeepsie-Newburgh, NY$1,638$393,60020.00.42%0.71$2,1310.92
85. Winston-Salem, NC$1,016$233,30019.10.44%0.74$1,332*0.97
86. Madison, WI$1,354$372,40022.90.36%0.62$1,565*0.71
87. Akron, OH$1,033$213,00017.20.48%0.82$1,2310.98
88. Ogden, UT$1,500$471,50026.20.32%0.54$1,5910.57
89. Palm Bay-Melbourne-Titusville, FL$1,556$339,60018.20.46%0.78$1,7790.89
90. Wichita, KS$987$201,20017.00.49%0.83$1,043*0.88
91. Syracuse, NY$1,077$187,70014.50.57%0.97$1,4931.35
92. Augusta-Richmond County, GA-SC$1,120$226,10016.80.50%0.84$1,329*1.00
93. Durham-Chapel Hill, NC$1,466$396,10022.50.37%0.63$1,745*0.75
94. Fayetteville-Springdale-Rogers, AR$1,157$307,20022.10.38%0.64$1,2560.69
95. Harrisburg-Carlisle, PA$1,212$253,10017.40.48%0.81$1,5981.07
96. Jackson, MS$1,072$200,50015.60.53%0.91$1,289*1.09
97. Spokane-Spokane Valley, WA$1,264$405,30026.70.31%0.53$1,494*0.63
98. Toledo, OH$939$176,30015.60.53%0.90$1,1451.10
99. Chattanooga, TN-GA$1,163$272,40019.50.43%0.72$1,3400.83
100. New Haven, CT$1,525$353,10019.30.43%0.73$2,0911.01

An asterisk marks a metro that contains more than one HUD Fair Market Rent area; the most populous one is shown.

Who passes 1.0, and what it takes

Sixteen metros reach a DSCR of 1.0 at 8.18% on either rent; the columns at 7.40% show what the Freddie Mac rate itself would do.

MetroMedian gross rentMedian valueGRMDSCR on ACS rent at 8.18%DSCR on ACS rent at 7.40%HUD 2BR FMRDSCR on FMR at 8.18%DSCR on FMR at 7.40%
Syracuse, NY$1,077$187,70014.50.971.05$1,4931.351.46
McAllen-Edinburg-Mission, TX$957$140,90012.31.151.24$1,0171.221.32
Rochester, NY$1,143$204,60014.90.951.02$1,4161.171.27
Toledo, OH$939$176,30015.60.900.97$1,1451.101.19
Pittsburgh, PA$1,053$215,00017.00.830.90$1,389*1.101.18
Jackson, MS$1,072$200,50015.60.910.98$1,289*1.091.18
El Paso, TX$1,079$180,20013.91.021.10$1,146*1.081.16
Harrisburg-Carlisle, PA$1,212$253,10017.40.810.88$1,5981.071.16
Buffalo-Cheektowaga, NY$1,057$226,10017.80.790.86$1,4231.071.15
Chicago-Naperville-Elgin, IL-IN$1,430$323,00018.80.750.81$2,011*1.061.14
Dayton-Kettering-Beavercreek, OH$1,039$201,10016.10.880.95$1,2481.051.14
Allentown-Bethlehem-Easton, PA-NJ$1,365$300,80018.40.770.83$1,839*1.041.12
Lakeland-Winter Haven, FL$1,363$266,50016.30.870.94$1,6081.021.10
Albany-Schenectady-Troy, NY$1,280$285,90018.60.760.82$1,7111.021.09
New Haven, CT$1,525$353,10019.30.730.79$2,0911.011.08
Cleveland, OH$1,050$215,40017.10.830.89$1,274*1.001.08

The pattern is the Rust Belt and the Texas border: upstate New York (Syracuse, Rochester, Buffalo, Albany), Ohio (Toledo, Dayton, Cleveland), Pennsylvania (Pittsburgh, Harrisburg, Allentown), McAllen and El Paso, Jackson, Mississippi, a few others (Lakeland, New Haven, Augusta) and Chicago on the HUD rent. Syracuse and Rochester are the cautionary cases: they have the highest real estate taxes relative to value in the table (2.43% and 2.52% of the median value a year), so a lender that adds taxes to the payment sees much less cushion. Adding the ACS median tax to the payment, as a lender's PITIA formula does (without insurance, which we do not have by metro), and also dropping our 5% vacancy haircut as lenders usually do, the best score at 8.18% is 0.98 on Census rent and 1.04 on HUD rent, and only 3 metros reach 1.0 on HUD rent (our arithmetic).

The big metros are far from it. Rent is 0.30% of value in the New York metro (GRM 28.0), 0.24% in Los Angeles (35.2), 0.45% in Dallas (18.6) and 0.44% in Chicago (18.8); Chicago scores 0.75 on Census rent but 1.06 on HUD's two-bedroom figure, which describes recent movers into standard units rather than the whole rental stock.

What this table does not tell you

  • The value is the owner-occupied stock, not what an investor pays. The ACS asks homeowners what their home would sell for; it covers every house, condo and mobile home that is owned and lived in. Investor purchases skew cheaper, older and smaller, which is why the 1% rule is applied to individual listings. A listing in the bottom third of a metro can pass where the metro median never will (our reading).
  • The rent is the renter stock. Census median gross rent is for all renter-occupied units, mostly apartments, and “gross” rent adds tenant-paid utilities to contract rent (our reading of the Census definition), so a landlord's rent is lower. HUD's figure is a two-bedroom unit rented by recent movers. A three-bedroom house usually rents for more than either (our reading).
  • The 5-year file lags. It pools 2020 to 2024. Home values and rents have moved since, and the interest rate is today's, so the DSCR column mixes dates.
  • Margins of error exist. The CSV carries the Census margin of error of rent and value for each metro; at the top of the ranking they are 1% to 3% of the estimate (McAllen: rent plus or minus $14, value plus or minus $3,800).
  • No insurance, vacancy beyond 5%, HOA, repairs or reserves, and no lender overlays. Lender minimums on DSCR vary and some accept ratios under 1.0; see our DSCR loan requirements. Property taxes shown are medians for owner-occupied units; an investor can lose a homestead exemption.
  • GRM is not return. Two metros with the same GRM can have very different taxes, insurance and maintenance; our cap rate calculator and rental property calculator (which also has state-level rent, tax and insurance inputs) carry those. Landlords who take housing vouchers should read our Section 8 landlord guide, because Fair Market Rents also set the base for voucher payment standards.

What a reader can do with this

  1. Screen with the break-even, not the rule. At today's estimated rate and 25% down, a property needs rent of about 0.59% of its price to cover principal and interest, and more once taxes and insurance are in. Use the 1% rule as a stricter filter, not as the test of whether a loan will qualify.
  2. Look at your metro's row, then at the listing. Compare the listing's rent and price with the metro's GRM and tax rate. If the metro median is far from 0.59% and the listing is not, ask why: age, condition, neighborhood, or a rent that a lease does not support.
  3. Check the rate your DSCR lender will quote, because every 0.5 point moves the break-even rent by roughly 0.03 points of value (our arithmetic). Compare quotes with our DSCR loan rates page and run a specific property through the DSCR loan calculator.
  4. Treat HUD's figure as a cross-check. HUD's FMR is a 40th-percentile rent for standard units; if your pro forma rent is far above it, you need a reason.
  5. Match expectations to the market type. In the low-GRM markets above, passing DSCR is easier and the risks sit in taxes, vacancy and condition; in the coastal markets the rent will not cover the debt at 75% loan-to-value without much more equity (our arithmetic).

For one of these lenders in depth, read our Kiavi review.

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FAQ

Rent, value and real estate taxes: U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates, tables B25064, B25077 and B25103, downloaded from the data.census.gov API on October 20, 2026 (variable labels from the Census API metadata); metro ranking: Census Bureau Vintage 2025 population estimates for metropolitan statistical areas (cbsa-est2025-alldata.csv); release status of the 2025 ACS: Census Bureau press release CB26-129 of August 4, 2026. Fair Market Rents: HUD, FY2027 Fair Market Rents file and the notice in the Federal Register of September 1, 2026 (2026-17891). Mortgage rate: Freddie Mac Primary Mortgage Market Survey, week of October 15, 2026, read October 20, 2026, and FRED series MORTGAGE30US. The DSCR-type gap is from our own DSCR loan rates page (federal HMDA data, our arithmetic). GRM, ratios, break-even rents and DSCR are our arithmetic with the script analyze.py. This is analysis of public documents, not investment, legal, tax or lending advice.

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