How Much Rent Can I Afford?
Rent that fits your income, your debts and landlords’ tests
- 30% rulerent + utilities ≤ 30% of gross income
- $1,675
- Landlord 40x testincome at least 40 × monthly rent
- $1,875
- With your debtsrent + utilities + debts ≤ 36%
- $1,650
- A $1,800 rentrent + utilities, share of gross income
- ! Above 30%32.0%
- Share of take-home payrent + utilities
- 41.7%
- Income a $1,800 rent needs30% rule / 40x landlord test
- $80,000 / $72,000
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Estimate only, not a loan offer or a landlord's decision. Landlords set their own income requirements. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
| Monthly rent | With utilities, % of income | % of take-home | Passes 40x test |
|---|---|---|---|
| $1,500 | 27.2% | 35.4% | ✓ Yes |
| $1,600 | 28.8% | 37.5% | ✓ Yes |
| $1,700 | 30.4% | 39.6% | ✓ Yes |
| $1,800 | 32.0% | 41.7% | ✓ Yes |
| $1,900 | 33.6% | 43.8% | ✕ No |
| $2,000 | 35.2% | 45.8% | ✕ No |
| $2,100 | 36.8% | 47.9% | ✕ No |
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How much rent can you afford?
The most common guideline is the 30% rule: keep rent plus utilities at or below 30% of your gross monthly income. It's the same line the U.S. Department of Housing and Urban Development uses to define housing cost burden. This calculator also checks two other tests:
- The landlord 40x test: many landlords require gross annual income of at least 40 times the monthly rent.
- Your debts: rent, utilities and debt payments together at or below about 36% of gross income leaves room to save.
With the example numbers, a $75,000 income with $400 of monthly debts and $200 of utilities supports rent of about $1,650. An $1,800 apartment passes most landlords' 40x test, but rent and utilities would take 32% of gross income and about 42% of take-home pay.
Beyond the rules of thumb
- Budget on take-home pay: in the 50/30/20 budget, all needs, including rent, food and transportation, fit in 50%.
- Count move-in costs: first month, a deposit, possibly last month and application fees.
- High-cost cities often make 30% hard. If you go over, cut elsewhere and keep an emergency fund.
Frequently asked questions
How much rent can I afford?
A common guideline is to keep rent plus utilities at or below 30% of your gross income, the line HUD uses for housing cost burden. With the example numbers, a $75,000 income with $400 of monthly debts and $200 of utilities supports rent of about $1,650 a month.
What is the 40x rent rule?
Many landlords and property managers require your gross annual income to be at least 40 times the monthly rent. A $1,800 rent needs $72,000 a year. Some accept a guarantor or extra deposit if you fall short.
Should I use gross or take-home pay?
The 30% rule and landlord tests use gross income. Your budget runs on take-home pay, so also check what share of it rent and utilities take. In the popular 50/30/20 budget, all needs, including rent, food and transportation, fit in 50% of take-home pay.
Is it better to rent or buy?
It depends on prices, rates and how long you'll stay. Compare both with our rent vs. buy calculator.