Rent is the biggest bill for most renters, and both your budget and your landlord care about how it compares with your income. This rent affordability calculator applies the three rules that come up most often: the 30% of income guideline, the landlord’s 40× income test and a debt-to-income cap that accounts for the loan payments you already make. It shows a comfortable rent and a stretch maximum, and it checks any specific rent you are considering.
How to use the rent affordability calculator
- Enter your gross household income, yearly or monthly, before taxes. Include everyone who will be on the lease.
- Enter your monthly debt payments: car loan, student loans, credit card minimums and any other loans.
- Enter the utilities you would pay on top of rent.
- Set a debt-to-income limit. 36% is a common conservative choice.
- Optionally enter a rent you are considering to see what share of income it takes and whether you meet the 40× rule.
The three affordability rules
30% rule. Rent plus utilities should stay at or below 30% of gross monthly income:
40× rule. Landlords often require annual income of at least 40 times the monthly rent:
Debt-to-income cap. Your housing cost plus existing debt payments stay within a set share of gross income:
The calculator’s comfortable rent is the lower of the 30% rule and the DTI cap, so it works for both your budget and your debt load. The stretch figure is the most generous of the three. You may get approved at that level, but it leaves less room for saving.
Worked example
A household earns $72,000 a year, or $6,000 a month, pays $450 a month toward a car loan and credit cards, and expects $150 of utilities.
- 30% rule: $6,000 × 0.30 − $150 = $1,650
- 40× rule: $72,000 ÷ 40 = $1,800
- 36% DTI cap: $6,000 × 0.36 − $450 − $150 = $1,560
- Comfortable rent: $1,560 a month. Stretch maximum: $1,800.
An apartment at $1,900 would take 34.2% of gross income with utilities, which HUD classes as cost-burdened. It would also need $76,000 of income to pass a 40× screen, $4,000 more than this household earns.
Rent by share of income
For $6,000 a month of gross income:
| Share of income | Rent + utilities |
|---|---|
| 20% | $1,200 |
| 25% | $1,500 |
| 30% | $1,800 |
| 35% | $2,100 |
| 40% | $2,400 |
Making rent work
- Count every housing cost. Renter’s insurance, parking, pet rent and amenity fees all count toward what the apartment really costs.
- Lower your debts first. Paying off a car loan or card balance raises the rent the DTI cap allows. See your ratio with the debt-to-income calculator.
- Leave room to save. Rent at 25% of income instead of 30% frees up $300 a month on a $6,000 income. That money can go toward an emergency fund or a home down payment.
- Roommates and income. Landlords usually combine the incomes of everyone on the lease for the 40× test, though some require each tenant to qualify on their own share.
If you are weighing whether to keep renting at all, compare the long-run cost with the rent vs. buy calculator.
Estimates only, not financial advice. Landlord screening criteria vary, and local costs of living may justify a lower or higher share of income.
Frequently asked questions
How much rent can I afford on $72,000 a year?
Under the 30% rule, $72,000 a year ($6,000 a month) supports $1,800 for rent and utilities combined, or $1,650 in rent if utilities run $150. Most landlords using the 40× rule would approve rent up to $1,800. With $450 of monthly debt payments, a 36% debt-to-income cap lowers the comfortable figure to $1,560.
What is the 40× rent rule?
Many landlords and property managers require a yearly gross income of at least 40 times the monthly rent. A $2,000 apartment needs $80,000 of income. Applicants below that may need a guarantor or a larger deposit, and some landlords use 30× or 36× instead.
Where does the 30% rule come from?
The US Department of Housing and Urban Development counts households that spend more than 30% of gross income on rent plus utilities as cost-burdened, and more than 50% as severely cost-burdened. The 30% benchmark dates back to federal housing-assistance rules and has become the everyday budgeting rule of thumb.
Should I use gross or take-home pay?
The 30% rule and landlord income tests use gross, pre-tax income. If you budget from take-home pay, a common target is to keep rent around 25% to 35% of what actually hits your bank account, depending on your other costs.