How to use the Rent Affordability Calculator
- 1 Enter your income before tax.
- 2 Enter any partner or housemate income.
- 3 Read the rent limits at 25% and 30% of income.
- 4 Check the bond you will need.
Worked example
A single renter earning $80,000. At 30% of gross income, the rental stress line is about $462 a week, or about $2,000 a month. A more comfortable 25% would be about $385 a week. The bond on $462 a week would be about $1,846.
Features
Rental stress line
30% of gross household income, the common measure.
Comfortable range
25% of income as a safer target.
Bond estimate
Four weeks of rent, the usual bond in most states.
When to use it
Rental searches
Set a weekly rent budget before inspections.
Sharing
Combine incomes with housemates.
Moving cities
Compare rent with income in a new city.
Applications
Show agents you can afford the rent.
Frequently asked questions
What is rental stress?
Usually when a lower-income household spends more than 30% of gross income on rent.
How much rent can I afford?
A common guide is no more than 30% of gross income, ideally around 25%.
How much is a bond?
Usually four weeks' rent, held by the state bond authority.
Is rent quoted weekly?
Yes. Rent in Australia is usually advertised per week.
What do agents look for?
Income, employment, rental history, references and sometimes savings.
Can I get rent assistance?
Commonwealth Rent Assistance may be available if you receive certain payments from Services Australia.
What other costs should I plan for?
Moving, utilities connection, contents insurance and internet.
Is 30% realistic in capital cities?
Many renters pay more in Sydney and Melbourne. Sharing or living further out helps.
Can rent be increased?
Rules on how often rent can rise vary by state, often once every 12 months.
Should I use take-home pay?
Checking rent against take-home pay gives a more practical budget.
How do I show income to an agent?
Recent payslips, an employment letter or bank statements. Self-employed renters can use tax returns.
Can I negotiate rent?
Sometimes, especially when vacancies are high or for longer leases.
Is there a limit on rent increases?
Most states limit increases to once every 12 months and require written notice.
What is a rental bidding ban?
Several states ban agents from inviting offers above the advertised rent.
What if my rent is above 30%?
Look at ways to bring it down over time, such as sharing, moving further out at the end of the lease, or increasing income. Budget carefully for other essentials in the meantime.
Does rent affordability differ by city?
Yes. Median rents in Sydney and Perth are much higher than in Adelaide or Hobart, so the same income goes further in some cities than others.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated