How Much Rent Can I Afford? Calculator
A common guideline is to spend no more than 30% of gross income on rent; many landlords require gross annual income of 40x the monthly rent. These are rules of thumb, not laws. Enter your numbers to compare them.
Enter your income to see how much rent you can afford.
The 3 income rules
30% rule
Gross monthly × 30%
A budgeting guideline
40x rule
Annual income ÷ 40
A common landlord income test
3x rule
Gross monthly ÷ 3
Another landlord test (same as 36x annual)
Income needed for common rents
Gross annual income, before tax.
| Monthly rent | 30% rule | 3x rule | 40x rule |
|---|---|---|---|
| $1,000 | $40,000 | $36,000 | $40,000 |
| $1,500 | $60,000 | $54,000 | $60,000 |
| $2,000 | $80,000 | $72,000 | $80,000 |
| $2,500 | $100,000 | $90,000 | $100,000 |
| $3,000 | $120,000 | $108,000 | $120,000 |
The 30% and 40x columns match because both work out to rent × 40 per year.
Rent affordability FAQ
What is the 30% rule for rent?
A common guideline is to spend no more than 30% of your gross (before-tax) income on rent. With $5,000 gross per month, that is $1,500. It is a rule of thumb, not a law, and it ignores your debts and local costs, so the debt-adjusted and 50/30/20 figures above can be lower.
What is the 40x rule, and how is it different from the 3x rule?
Some landlords ask for a gross annual income of 40 times the monthly rent. Others ask for gross monthly income of 3 times the rent, which is the same as 36 times annually. For $2,000 rent that is $80,000 a year (40x) or $72,000 a year (3x). The 40x rule gives the same rent figure as the 30% rule. Landlords set their own tests; neither is a law.
Does the rent budget include utilities?
The 30% and income-multiple rules look at rent only. The 50/30/20 figure here subtracts the utilities and debt payments you enter from the needs share of your take-home pay, so a higher utilities estimate lowers the comfortable rent.
What if I don't meet the landlord's 40x income requirement?
Common options are a co-signer or guarantor with enough income, proof of savings, a larger security deposit where your state allows it, or a cheaper unit. Ask the landlord what they accept, in writing. Deposit limits differ by state; see the security deposit limits by state page. Security deposit limits by state
Should I use gross or take-home income?
Landlords and the 30% and 40x rules use gross income, before tax. The 50/30/20 budget uses take-home pay. If you leave take-home blank, this calculator estimates it as 75% of gross, which is only an estimate; enter your real figure for a better answer.
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General information only, not legal or financial advice. Landlords set their own income requirements.