How much rent can you afford?
The most common guideline is the 30% rule: spend no more than 30% of your gross (before-tax) income on rent. Many landlords use a matching test, the 40× rule: your yearly income should be at least 40 times the monthly rent. Both give the same answer, since 30% of income divided by 12 months equals income divided by 40.
The calculator also checks your other debts. Your recommended rent is the lower of the 30% amount and the most you can pay while keeping rent plus all debt payments under 36% of income. If you have large car or student loan payments, that second limit is often the one that matters.
Costs to budget besides rent
- Utilities such as electricity, gas, water, trash and internet
- Renters insurance, which protects your belongings and is often required
- Security deposit, application fees and moving costs
- Parking, pet rent and amenity fees
Frequently asked questions
What if I don't make 40 times the rent?
Landlords may accept a co-signer or guarantor, a larger security deposit, proof of savings, or a roommate whose income counts toward the total.
Is the 30% rule realistic in expensive cities?
Many renters in high-cost areas pay more than 30%. If you do, try to keep other spending and debts low and keep building an emergency fund.
Should I use gross or take-home pay?
Landlords and the 30% rule use gross income. For a stricter personal budget, many people aim to keep rent near 25% of gross pay or about a third of take-home pay.