The 0.5% rule...Can you be successful?

[Kyle Scholnick]

I live just outside of Washington DC where I would say the average home price is about $475,000. 

Based on the going rate for rents, for $475,000 house I probably won't be able to get more than $2800 in rental income for the month.

Can these numbers ever work out?

I am well aware I am missing some information here about a general analysis of the property but I'm just speaking in general terms. 

Not sure if this makes a difference but this is a stable area, even in 2008 prices only dropped by about 20% from what I hear.

Also I was looking into living in the house I rent out as wellfor now but eventually will move out and that will be just a rental.

What do you think, do you always have to abide by the 1% rule?