How Much Rent Can You Afford?
The 30% rule caps rent at 30% of gross income — $1,500 a month on $60,000. A rent-by-salary table, the landlord 3× rule, and when to aim lower.
The short version
- The 30% rule: spend no more than 30% of gross monthly income on rent — $1,500 a month on a $60,000 salary.
- Many landlords require gross monthly income of at least 3× the rent, which works out to about 33%.
- Debts matter: if you pay a lot toward a car or student loans, aim below 30%.
- Budget for utilities, renters insurance, and parking too — they’re part of what housing costs you.
- HUD considers households paying more than 30% of income on housing “cost-burdened.”
Rent is most people’s biggest monthly bill, so getting it right shapes the rest of your budget. The most common guideline is to keep rent at or below 30% of your gross income. It’s a good starting point, but your debts, your city, and your savings goals can push the right number up or down.
The 30% rule
Multiply your gross (pre-tax) monthly income by 0.30. If you earn $60,000 a year, that’s $5,000 a month and a rent target of $1,500. The guideline comes from federal housing policy: HUD defines households paying more than 30% of income for housing as cost-burdened.
| Annual salary | Monthly income | 30% rule | Landlord 3× rule |
|---|---|---|---|
| $30,000 | $2,500 | $750 | $833 |
| $40,000 | $3,333 | $1,000 | $1,111 |
| $50,000 | $4,167 | $1,250 | $1,389 |
| $60,000 | $5,000 | $1,500 | $1,667 |
| $75,000 | $6,250 | $1,875 | $2,083 |
| $100,000 | $8,333 | $2,500 | $2,778 |
| $150,000 | $12,500 | $3,750 | $4,167 |
Paid hourly? Multiply your wage by 2,080 for a yearly figure. At $25 an hour, monthly income is about $4,333 and 30% is $1,300.
The landlord’s test
Many landlords and property managers require your gross monthly income to be at least three times the rent. For a $2,000 apartment, that means earning $6,000 a month, or $72,000 a year. Some state it as annual income of 40 times the monthly rent, which is the same as the 30% rule. If you don’t meet the bar, a co-signer or guarantor can help.
When to aim lower than 30%
- You have significant debt payments — keep rent plus debts under about 36% of gross income.
- Utilities, parking, or pet rent aren’t included in the advertised rent.
- You’re saving for a home down payment or building an emergency fund.
- Your income varies month to month, as with commission or gig work.
In high-cost cities, spending more than 30% is common, and sometimes unavoidable. If you do, offset it elsewhere: the 50/30/20 budget gives 50% of take-home pay to all needs combined, so a bigger rent means trimming other necessities or wants.
Don’t forget the move-in costs
Expect to pay first month’s rent plus a security deposit — often equal to a month’s rent — and sometimes last month’s rent, application fees, and moving costs. Having two to three months of rent saved before you sign makes the move far less stressful.
Renting vs. buying
If you’re weighing whether to keep renting or buy, compare the full costs of each — including the down payment, maintenance, and what your savings could earn — with the rent vs. buy calculator.
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Frequently Asked Questions
How much rent can I afford on $50,000 a year?
About $1,250 a month under the 30% rule. Landlords using a 3× income test would approve up to about $1,389. With other debt payments, aim lower.
Is the 30% rule based on gross or net income?
Gross — your income before taxes. Because take-home pay is lower, 30% of gross income is closer to 35% to 40% of what actually reaches your bank account.
What does 3× the rent mean?
Your gross monthly income must be at least three times the monthly rent. For $1,800 rent, you’d need to earn $5,400 a month, or $64,800 a year.
Should rent include utilities in my budget?
Ideally, yes. Housing costs include utilities, so if they aren’t included in the rent, keep rent a little below 30% to leave room for them.
Sources
This article is for general education and is not financial, tax, or legal advice. Figures reflect published IRS and SSA amounts as of the date above; verify current limits with the linked sources or a qualified professional before acting.
About the author
David Miles is the founder of FigureMoney and builds independent, source-backed personal-finance tools across the Modern Site Builders network. Every calculator and guide cites the IRS, SSA, or primary research behind its numbers.
Calculators in this guide
Rent Affordability Calculator
Find how much rent you can afford from your income and debts using the 30% rule, the landlord 3× income rule, and a take-home-pay budget.
50/30/20 Budget Calculator
Split your take-home pay into needs, wants, and savings with the 50/30/20 rule — or your own split — and compare it with what you actually spend.
Rent vs. Buy Calculator
Should you rent or buy? Compare the true cost of buying a home against renting and investing the difference, with a year-by-year net-worth break-even.
Popular salaries: hourly pay and take-home
What a salary works out to per hour, per month, and after taxes in every state.
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