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How to Calculate Rent to Value (At Purchase)
![Contain 800x800](https://bpimg.twic.pics/no_overlay/uploads/uploaded_images/1645910197-PFOH_-_Rent_to_Value__At_Purchase__Moment.jpg?twic=v1/output=image/quality=55/contain=800x800)
Rent to Value (At Purchase) – Measures the monthly gross income to the purchase price. The higher the rent to value ratio, better the investment.
Gross Income
÷ Purchase Price
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= Rent to Value (At Purchase)
$22,400
÷ $1,800,000
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= 1.24%
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