Is the 70% rule the same in every state?

No — it's a national heuristic. Many investors flex it to 75-80% in high-ARV states and closer to 60-70% in lower-cost markets because rehab cost is a different share of ARV.

Is there official data on ARV multipliers by state?

No government or MLS source tracks this; it's an investor convention, so any state table (including this one) should be treated as an estimate range to test locally.

How do I calculate MAO with a local multiplier?

MAO = (ARV x your chosen multiplier) - estimated rehab cost - assignment fee/margin. Validate ARV with recent comparable sales first.

Does Offr AI calculate ARV and MAO automatically?

Yes — Offr AI generates an ARV estimate, a rehab cost range, and a suggested MAO for each lead it surfaces from your buy box.

Average ARV Multipliers by State: Benchmark Ranges & Methodology | Offr AI

Average ARV Multipliers (Rehab-to-ARV Ratios) by State: Estimate Ranges

ARV multiplier conventions like the 70% rule vary by market. See labeled estimate ranges by state cost tier and how to verify them with local comps.

Updated 2026-08-24 · 8 min read · Offr AI

Short answer

The traditional 70% rule (MAO = 70% of ARV minus rehab) is a national rule of thumb, not a state-specific statistic. In practice, investors in high-cost states often use a higher multiplier (75-80%) because rehab cost is a smaller share of ARV, while lower-cost states often stick closer to 65-70%. These are estimate ranges to test against your own comps, not verified per-state data.

Where the "70% rule" comes from and why it isn't state-specific by default

The 70% rule is a widely used investor heuristic, not a government or MLS statistic. No public agency publishes an "ARV multiplier by state." Investors adjust the multiplier locally based on rehab costs relative to ARV, competition for deals, and typical holding costs — all of which vary by metro more than by state line.

Illustrative ARV multiplier ranges by cost tier

State cost tier	Example states	Typical multiplier range used
High ARV / lower rehab-to-ARV ratio	CA, NY, MA	75%-80%
Mid-tier	TX, FL, CO, AZ	70%-75%
Lower ARV / higher rehab-to-ARV ratio	OH, IN, MS, AL	60%-70%

These are illustrative planning ranges, not measured averages. Always validate MAO against 3-5 recent, comparable ARV sales and an actual contractor rehab estimate.

How to reproduce this yourself

Pull deed/transfer records from your county recorder or a title company for the ZIP codes or city you're evaluating (many counties publish these free online).
Filter for "double-close" or same-day/short-hold transactions (buyer and seller on the same parcel within 0-30 days) as a rough proxy for wholesale-style flips.
Cross-reference sale prices with an ARV estimate from recent comparable sales (MLS or a public comp tool) to back into estimated spreads.
Pull HUD/Census ACS data for household income, vacancy rate, and rent-to-price ratio by ZIP to gauge investor demand.
Check FHFA House Price Index for the metro to see appreciation trend context.
Cross-check foreclosure/pre-foreclosure filing counts from your county clerk or an ATTOM-style public data feed to estimate distressed-inventory volume.

Limitations

These are estimate ranges, not audited findings. Public deed records don't label a transaction "wholesale deal" — the double-close/short-hold proxy above will include unrelated flips and renovations. Sample sizes, time periods, and data completeness vary by county. Always validate any range against your own local pull before using it to price a deal or set expectations with a client.

Where Offr AI fits in

Once you've benchmarked a market using the steps above, Offr AI turns a plain-English buy box into 25+ off-market distressed leads across all 50 states, each with skip-traced owner phone numbers, an ARV estimate, a rehab range, a suggested Maximum Allowable Offer (MAO), ready-to-send contracts, and call scripts, plus matching to your local cash-buyer list. Try 3 searches free, or see pricing for the $45/mo platform-only or $65/mo all-access plan (7-day free trial).

Frequently asked questions

Is the 70% rule the same in every state?: No — it's a national heuristic. Many investors flex it to 75-80% in high-ARV states and closer to 60-70% in lower-cost markets because rehab cost is a different share of ARV.
Is there official data on ARV multipliers by state?: No government or MLS source tracks this; it's an investor convention, so any state table (including this one) should be treated as an estimate range to test locally.
How do I calculate MAO with a local multiplier?: MAO = (ARV x your chosen multiplier) - estimated rehab cost - assignment fee/margin. Validate ARV with recent comparable sales first.
Does Offr AI calculate ARV and MAO automatically?: Yes — Offr AI generates an ARV estimate, a rehab cost range, and a suggested MAO for each lead it surfaces from your buy box.

Try it on a real deal

Type a buy box in plain English and Offr AI returns 25+ distressed, off-market properties with owner phone numbers, ARV, rehab range, max offer, the contract and the script. Three searches free, no card.

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