Rent Affordability Calculator

Rules for how much rent you can afford

Rule	How it works	$60,000 income
30% rule	Rent ≤ 30% of gross monthly income	$1,500
40x rule	Annual income ≥ 40 × monthly rent	$1,500
36% debt rule	Rent + debts ≤ 36% of gross monthly income	$1,400 with $400 of debts

Landlords commonly use the 40x rule when screening tenants. The 30% rule is a long-standing budgeting guideline. Taking your other debts into account gives a more realistic figure.

Worked example

On $60,000 a year, gross monthly income is $5,000. 30% of that is $1,500, and 60,000 ÷ 40 is also $1,500. With $400 of monthly debts, keeping all debts under 36% of income suggests about $1,400.

Other costs to budget for

• Utilities, internet and renter’s insurance.
• Security deposit and first month’s rent upfront.
• Parking, pet rent and application fees.
• Commuting costs, which can change with location.

Frequently asked questions

Is the 30% rule realistic?

In high-cost cities many renters pay more than 30%. Treat it as a guideline and make sure your full budget still works.

What is the 40x rent rule?

Many landlords require your yearly income to be at least 40 times the monthly rent. For $2,000 rent, that is $80,000 a year.

Should I use gross or net income?

Both rules here use gross income because that is what landlords check. If your take-home pay is much lower, aim for less.

What if I do not meet the income requirement?

Options include a co-signer or guarantor, a roommate, or showing savings. Policies vary by landlord.