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Sm2Co17 rubber magnet is a kind of bonded magnet and can be produced using by-products obtained in the cutting process of sintered compact after Sm–Co system sintered magnets were made. These rubber magnets are still expensive, but they are effectively used for the sensors requiring a small amount of them. Their magnetic properties largely depend on the interaction between the rubber and the magnetic powder. This article describes the effect of the stearic acid and the compacting pressure on the density and magnetic properties of Sm(Co0.6Cu0.08Fe0.3Zr0.02)8.35 rubber magnets. In the case of 1.5 wt% of stearic acid and 850 MPa of compacting pressure, this article shows that the isotropic rubber magnet is 5.51 g/cm3 in density, 0.34 T in remanence, and 22.99 kJ/m3 in energy product. [ABSTRACT FROM AUTHOR]