How to use the Rent Affordability Calculator
- 1 Enter your gross yearly income before tax.
- 2 Enter your monthly debt payments, such as car and student loans.
- 3 Optionally enter your take-home pay.
- 4 Read the suggested maximum rent.
Worked example
A $75,000 income with $400 of monthly debt payments. The 30% rule allows $1,875 and the 40 times rule also $1,875. The 36% debt rule leaves $1,850 after debts, so the suggested maximum rent is about $1,850 a month. Landlords would want about $74,000 of income for that rent.
Features
Three rules
30% rule, 40 times rent rule and 36% debt rule.
Landlord view
The income landlords usually want for that rent.
Take-home share
Rent as a share of your real pay.
When to use it
Apartment hunting
Set a rent budget before viewing.
Roommates
Combine incomes to see what you can share.
Moving cities
Compare rents in a new city with your income.
Job offers
See how a new salary changes your options.
Frequently asked questions
What is the 30% rule?
A guideline that rent should be no more than 30% of gross income. HUD calls households paying more than 30% cost-burdened.
What is the 40 times rent rule?
Many landlords and property managers require yearly income of at least 40 times the monthly rent, so $2,000 rent needs $80,000 income.
Should I use gross or net income?
The rules use gross income, but checking rent against take-home pay gives a more realistic picture.
What if I cannot meet the income rule?
Options include a guarantor, a co-signer, roommates, a larger deposit or a smaller place.
Does rent include utilities?
Budget utilities, renters insurance and parking on top of rent.
How much should I keep for savings?
A common budget puts 20% of take-home pay toward savings and debt payoff.
What upfront costs should I budget?
First month's rent, a security deposit often equal to one month, application fees and moving costs.
Does a good credit score help?
Yes. Landlords often check credit, and a good score can make up for slightly lower income.
Is it better to rent or buy?
It depends on how long you will stay, local prices and rents, and your savings. Buying usually needs about five years to beat renting.
What counts as income for landlords?
Usually salary, self-employment income with tax returns, benefits and regular support payments.
How can I lower rent costs?
Consider roommates, a longer lease, a less central area or negotiating with the landlord.
Does the 30% rule work in expensive cities?
It is a guide. In high-cost cities many renters pay more, so they keep other costs lower and rely on roommates or shorter commutes.
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