Rent Affordability Calculator
How much rent can you afford? Based on the standard income-to-rent ratio used by landlords and financial advisors.
Housing is most people's largest expense, and overspending on rent is one of the fastest ways to derail your financial goals. The 30% rule — spending no more than 30% of gross income on rent — is the standard guideline used by landlords and HUD. But your ideal ratio depends on your debt, savings goals, and local market. This calculator helps you find the right rent ceiling for your situation.
With $6,000/month income, you can afford up to $1,800/month in rent using the 30% rule. This leaves $4,200/month for all other expenses and savings.
Student loans, car payments, minimum credit card payments
Rent affordability
Max monthly rent
$1,800
Max annual rent
$21,600
Rent-to-income
30%
Annual income
$72,000
How to use this calculator
Monthly gross income — Your total monthly income before taxes. Include all sources: salary, side income, investment income.
Monthly debt payments — All recurring debt payments: student loans, car payments, minimum credit card payments. This affects how much rent you can truly afford.
Affordability rule — Conservative (25%) for aggressive savers or high-debt situations. Standard (30%) is the most common guideline. Aggressive (40%) may work in high-cost cities with minimal other expenses.
Real-world examples
$6K/month income, 30% rule
Max rent: $1,800/month. This leaves $4,200 for taxes, food, transportation, insurance, debt payments, and savings. In many cities, $1,800 gets a decent 1-bedroom.
$4K/month income, 25% rule
Max rent: $1,000/month. Using the conservative rule ensures you have room for debt payments and aggressive saving. You may need roommates in high-cost cities.
High-cost city: $8K income, 40% rule
Max rent: $3,200/month. In NYC or SF, this might be necessary for basic housing. But it leaves only $4,800 for everything else — tight if you have debt or savings goals.
Formula & Methodology
Maximum rent
- Rule % = 25%, 30%, or 40% depending on your situation
Assumptions & limitations
- Based on gross (pre-tax) income. Your take-home pay is typically 70–80% of gross.
- Doesn't account for variable housing costs like utilities, parking, or renter's insurance.
- Landlords typically require 2.5–3x monthly rent in gross income for approval.
- In high-cost cities, many households exceed 30% — HUD considers over 30% 'cost-burdened'.
Frequently asked questions
What is the 30% rule?
Spend no more than 30% of gross income on rent. This is the most common guideline used by landlords for approval and by HUD for defining 'cost-burdened' households.
When should I use 25% or 40%?
Use 25% if you have high debt payments or are aggressively saving. 40% may work in high-COL cities if you have minimal other expenses.
What if rent includes utilities?
If utilities are included, you can count the total housing cost against the 30% rule. If not, budget an extra 10–20% of rent for utilities, parking, and renter's insurance.
How do landlords verify income?
Most require pay stubs, tax returns, or offer letters. They typically look for 2.5–3x monthly rent in gross income. Some also check debt-to-income ratio.