How much rent can I afford?
Enter your pre-tax income, per year or per month, and your monthly debt payments. The rent calculator shows the rent that is comfortable for your budget and the most you could reasonably spend, based on the same debt-to-income rules lenders use for mortgages. If you are paid by the hour, the salary calculator converts your wage to a yearly income.
How the result is calculated
Rent plus your other monthly debts should stay at or below 28% of your gross monthly income to be safe. Up to 36% is acceptable but leaves less room for savings, and anything above that is aggressive.
Example: with an income of $60,000 a year ($5,000 a month) and $300 of monthly debt payments, the recommended maximum rent is 28% × $5,000 − $300 = $1,100, and the upper limit is 36% × $5,000 − $300 = $1,500. Every dollar of debt payments lowers the rent you can afford by a dollar, so paying off a car loan or a credit card frees up room for housing.
How much rent can I afford on my salary?
The table shows the monthly rent for common incomes with no other debts. The hourly wage assumes full-time work of 2,080 hours a year.
| Annual income | Hourly wage | Safe (28%) | Maximum (36%) | 30% rule |
|---|---|---|---|---|
| $30,000 | $14.42 | $700 | $900 | $750 |
| $40,000 | $19.23 | $933 | $1,200 | $1,000 |
| $50,000 | $24.04 | $1,167 | $1,500 | $1,250 |
| $60,000 | $28.85 | $1,400 | $1,800 | $1,500 |
| $75,000 | $36.06 | $1,750 | $2,250 | $1,875 |
| $100,000 | $48.08 | $2,333 | $3,000 | $2,500 |
| $150,000 | $72.12 | $3,500 | $4,500 | $3,750 |
The 30% rule
A popular rule of thumb is to spend no more than 30% of gross income on rent. It is easy to remember, but it ignores your other debts. If you pay a car loan or student loans, a lower share is safer. In expensive cities many people pay more than 30%, which makes saving much harder. Since the rule uses income before tax, check what is left after taxes with the take-home paycheck calculator.
What landlords look for: the 40x and 3x rules
Many landlords require a yearly income of at least 40 times the monthly rent, which is the same as spending no more than 30% of gross income on rent. Others ask for a monthly income of at least 3 times the rent, or one third of income. They also check your credit and rental history and may ask for a guarantor if your income is too low.
Costs beyond the rent
- utilities, internet and phone;
- renter's insurance;
- parking and pet fees;
- a security deposit, often one month's rent, plus application and moving costs.
Ways to spend less on rent
- share a larger place with roommates;
- look a little further from the city center;
- negotiate a longer lease for a lower monthly rent;
- pay down debts so more of your income is free for housing — the debt payoff calculator shows the fastest way.
Renting or buying?
If you are thinking about buying instead, the house affordability calculator uses the same 28/36 rule to find the home price that fits your income, and the rent vs. buy calculator compares the real cost of renting and owning over the years you plan to stay. Lenders look at your debt-to-income ratio the same way this calculator does.