2% rule for rental properties

[Ana Brasher]

I have read that real estate investors look for property that meet the 2% rule.  The monthly rental of a home should be 2% of the home purchase price.  I have not seen any properties close to that %.  Occasionally I will see properties at 1%.  Many homes are overprice but even at tax assessment value, the rental income is not meeting the 2% rule.

Am I mis-interpreting this rule?