How much rent can I afford on my salary?

The general rule is that rent should not exceed 30% of your gross monthly income. For example, if you earn $60,000/year ($5,000/month), you can afford up to $1,500/month in rent. Our calculator shows you exact amounts based on your income.

What is the 30% rule for rent?

The 30% rule states that you should spend no more than 30% of your gross (pre-tax) monthly income on housing costs including rent. This guideline helps ensure you have enough money left for other expenses, savings, and emergencies.

Should I use gross or net income for rent calculations?

Most rent affordability calculations, including the 30% rule, use gross income (before taxes). This is the standard used by landlords when evaluating rental applications. However, being more conservative (using net income) can provide extra financial cushion.

What if I can't find rent within 30% of my income?

In expensive cities, spending up to 40% on rent may be necessary. Consider getting a roommate, looking in nearby neighborhoods, or negotiating rent. Many renters in high-cost areas exceed the 30% guideline but should budget carefully for other expenses.

Does the 30% rule include utilities?

The traditional 30% rule covers rent only. When including utilities, many financial advisors recommend keeping total housing costs (rent + utilities) at 30-35% of income. Budget an additional 5-10% of rent for utilities.

How do landlords calculate if I can afford rent?

Most landlords use the 3x rent rule: your gross monthly income should be at least 3 times the monthly rent (equivalent to 33% of income on rent). Some luxury apartments require 40x annual income. Use our 3x Rent Calculator for landlord screening.

Is spending 25% of income on rent better?

Spending only 25% on rent gives you more financial flexibility for savings, investments, and unexpected expenses. This is recommended if you're trying to save aggressively, pay off debt, or build an emergency fund. Our calculator shows both 25% and 30% options.

What's the difference between rent affordability and the 3x rent rule?

Rent affordability (30% rule) tells you how much rent you can comfortably afford. The 3x rent rule is what landlords use to screen applicants - requiring income 3x the rent. Both help ensure financial stability, approaching from different angles.

RentLateFee.com

Free 2025 Calculator

Rent Affordability Calculator

How much rent can I afford? Use the 30% rule to calculate your maximum affordable rent based on your income. See instant results with 25%, 28%, and 30% thresholds.

Last Updated

December 8, 2025

RentLateFee Financial Team

Personal Finance & Housing Specialists

Our team of financial experts helps renters and landlords make informed housing decisions using proven affordability guidelines.

Calculate Your Affordable Rent

Enter your income to see how much rent you can comfortably afford

Annual Gross Income (Before Taxes)

Use your gross income (before taxes) - this is what landlords use to evaluate rental applications.

The 30% Rule Explained

The 30% rule is a widely-used guideline stating that housing costs should not exceed 30% of your gross monthly income.

25% = Aggressive Saver

Maximum flexibility for savings and investments

28% = Balanced

Good balance between housing and other expenses

30% = Standard Maximum

Industry standard upper limit

Related Calculators

Understanding Rent Affordability

Determining how much rent you can afford is one of the most important financial decisions you'll make. The widely-accepted 30% rule suggests that your housing costs shouldn't exceed 30% of your gross monthly income. This guideline helps ensure you have enough remaining for food, transportation, healthcare, savings, and unexpected expenses.

Why the 30% Rule Matters

Financial experts recommend the 30% rule because it creates a sustainable budget that leaves room for other essential expenses. When you spend more than 30% on housing, you become cost-burdened, meaning you may struggle to afford necessities like food, healthcare, transportation, and savings. According to the U.S. Census Bureau, nearly half of American renters spend more than 30% of their income on housing, putting them at financial risk.

Landlords also use income-based criteria when screening tenants. Most property managers require tenants to earn at least 2.5x to 3x the monthly rent. This means that while you might be comfortable spending 30% on rent, you may need to demonstrate even higher income to qualify for certain apartments. Our 3x Rent Calculator can help you understand landlord income requirements.

Factors Beyond the 30% Rule

While the 30% guideline is helpful, your ideal rent budget depends on several personal factors: existing debt payments, student loans, car payments, childcare costs, savings goals, and lifestyle preferences. If you have minimal debt and prioritize location, you might comfortably spend 35% on housing. Conversely, if you're aggressively saving for retirement or paying down debt, aim for 25% or less.

Quick Rent Affordability Chart

Annual Income	Monthly Income	Max Rent (30%)	Max Rent (25%)
$40,000	$3,333	$1,000	$833
$50,000	$4,167	$1,250	$1,042
$60,000	$5,000	$1,500	$1,250
$75,000	$6,250	$1,875	$1,563
$100,000	$8,333	$2,500	$2,083