Monthly Expenses
Gross Yield
7.54%
Net Yield
4.39%
Monthly Net Rent
$1,280
What is a good rental yield?
A good gross rental yield typically ranges from 5% to 8% in the US, though this varies significantly by market. Net yield (after expenses) of 4% to 6% is generally considered solid. In expensive metros like San Francisco or New York, yields may be 2-4%, while smaller cities can exceed 10%. The key is balancing yield with appreciation potential and tenant quality.
How is gross vs net yield calculated?
Gross yield is simply (Annual Rent / Property Price) x 100. Net yield factors in expenses: ((Annual Rent - Annual Expenses) / Property Price) x 100. Net yield gives a more accurate picture of your actual return because it accounts for maintenance, insurance, property taxes, and management fees.
What expenses should I include?
Key expenses include: property tax (1-3% of value annually), homeowners insurance, property management fees (8-12% of rent), maintenance and repairs (budget 1-2% of property value per year), HOA fees, vacancy allowance (5-10% of rent), and landlord insurance. Don't forget to budget for capital expenditures like roof replacement or HVAC systems.
Note: This calculator provides estimates based on the inputs provided. Actual yields may vary based on vacancy rates, unexpected repairs, and market conditions. Consult a real estate professional for investment advice.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 527 — Residential Rental Property
- IRS Publication 946 — How to Depreciate Property (MACRS)
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.
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