Rent affordability calculator
How much rent can an income support? See the answer under the three rules renters and landlords use: the 30% rule, the 3x-income rule and the 40x rule. Or work backwards from a rent.
That income is
30% rule
$1,500.00/mo
30% of monthly income
3x income rule
$1,666.67/mo
income is 3 times the rent
40x rule
$1,500.00/mo
yearly income is 40 times the rent
For guidance only, not legal or financial advice. Your lease and your state's or city's rules come first.
The three rent affordability rules
- 30% rule: spend no more than 30% of gross monthly income (before taxes) on rent. A long-standing budgeting guideline.
- 3x income rule: monthly income should be at least three times the rent. Many landlords use it when they review applications.
- 40x rule: yearly income should be at least 40 times the monthly rent. Common in high-rent cities.
Example
Someone earning $60,000 a year makes $5,000 a month. Under the 30% rule they can afford $1,500 a month, under the 3x rule about $1,667, and under the 40x rule $1,500.
Questions landlords ask
- Should I use gross or net income?
- These rules use gross income, before taxes, because that is what pay stubs and offer letters show and what landlords usually ask for.
- What if a renter doesn't meet the rule?
- Landlords often accept a co-signer or guarantor, a larger deposit where the law allows it, or proof of savings. Apply the same standard to every applicant, as fair-housing rules require.
- Do utilities count toward rent?
- The rules are about rent, but a full budget should include utilities and required fees. KeyLedger listings show the full monthly cost, rent plus required fees, for that reason.
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