Rent Calculator
How much rent can you afford? Your maximum rent by the 30% rule, the landlord’s 40× income rule and a 36% debt-to-income limit – from your gross income, debts and utilities.
The 30% rule
The best-known guideline says rent should take no more than 30% of gross income. It comes from a 1969 federal housing law that capped public-housing rent at 25% of income, later raised to 30%. Households paying more are called “cost-burdened” by HUD; above 50% “severely cost-burdened”.
The landlord’s 40× rule
Many landlords and property managers, especially in New York and other big cities, ask for a gross annual income of at least 40 times the monthly rent. For a $1,800 apartment you would need $72,000 a year. If you earn less, they may accept a guarantor who earns 80× the rent.
Debts change the picture
The 30% rule ignores car payments, student loans and credit cards. The calculator also applies a 36% debt-to-income limit – rent, utilities and debt payments together – and shows the lower of the two. With $72,000 a year, $400 of debt payments and $200 of utilities that is $1,560 a month.
Upfront costs
Budget for the first month’s rent, a security deposit (often one month, capped by law in many states), application and broker fees and moving costs – easily two to three months of rent before you get the keys.
Frequently asked questions
How much rent can I afford on $50,000 a year?
About $1,250 a month by the 30% rule, before utilities. A landlord using the 40× rule would approve rent up to $1,250 as well.
Is the 30% rule gross or net income?
Gross, before taxes. If you want to budget from take-home pay, aim for 25–35% of net income instead.
What income do I need for $2,000 rent?
$80,000 a year under the 40× rule, or $6,667 a month under the 30% rule.