What Is Good Cash Flow on a Rental Property? (2026)

Cash flow is what is left each month after a rental pays all of its bills. It is the number that decides whether a property builds your wealth or quietly drains it. Here is what 'good' looks like in 2026 - and the mistake that makes a bad deal look good.

The rule of thumb

Many long-term-rental investors aim for at least $100–$200 in monthly cash flow per unit after every expense. It is a guideline, not a law - high-appreciation markets accept thinner cash flow, while cash-flow markets expect more. The key word is after every expense.

The expenses people forget

A deal that looks great at 'rent minus mortgage' often disappears once you count the rest:

• Vacancy - budget 5–8% of rent for empty months.
• Repairs & maintenance - typically 5–10% of rent.
• Capital expenditure - roofs, HVAC, water heaters; set aside another 5–10%.
• Property management - 8–10% even if you self-manage today (your time has value).
• Taxes, insurance, and any HOA.

Count all of these and the true cash flow appears. Skipping them is how investors buy a 'cash-flowing' rental that loses money the first time the furnace dies.

Run the real number

The Plannful Rental Property Analyzer forces every expense line in and returns true monthly cash flow, cap rate, cash-on-cash and DSCR - so you see the deal as it really is before you offer.

See the Rental Property Analyzer →

Own several? The Multi-Property Dashboard rolls cash flow, equity and occupancy across up to 12 properties.

Frequently asked questions