The Home Maintenance 1% Rule

The common rule of thumb is to budget 1% of your home's value annually for maintenance and repairs. For a $300,000 home, that's $3,000 per year. However, this rule oversimplifies — older homes and homes in poor condition need significantly more. A more accurate approach adjusts for age (older homes need 1.5–3%), current condition, climate, and square footage. The square footage method ($1–$2.50/sqft/year) often gives a more realistic estimate for larger or older properties.