Can't find properties meeting the Rule of 2% (or Rule of 1%)

[John Williams]

I'm considering a jump into residential real estate as an investment opportunity and have read about the Rule of 1% and Rule of 2% (i.e. monthly rent should be 1-2% of the property price). I understand they aren't necessarily "hard and fast" rules, but based on my financial modeling, I won't reliably generate cash flow unless I land in that 1-2% range.

If my understanding is correct, I'll need to find a property with a Price-to-Rent Ratio between 4.17 and 8.33 in order to meet the Rule of 2% or 1%, respectively.

Rule of 1% requires Price-to-Rent Ratio below 8.33

Rule of 2% requires Price-to-Rent Ratio below 4.17

I've downloaded Zillow data to calculate the Price-to-Rent Ratio in various areas (searching my city and those nearby). I have barely been able to find any zip codes with an average Price-to-Rent Ratio below 10.

What gives? Does this indicate that the market just isn't ripe for a cash-flowing property that meets the Rule of 1% or 2%? Or do I just need to look harder to find the diamond in the rough?