Find out how much rent you can afford using the three tests renters and landlords use most: the 30% rule, the 50/30/20 budget and the 40x income requirement. On a $75,000 salary the 30% rule allows $1,875 a month. With $4,800 of monthly take-home pay, $300 of debt payments and $700 of other essentials, though, the 50/30/20 budget leaves $1,400 for rent, so that is the more comfortable figure.
Rent Affordability Calculator
30% rule, 50/30/20 budget and the 40x landlord test · Updated October 13, 2026
- 30% of gross income
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- 50/30/20 budget left for rent
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- Highest rent at the 40x income test
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- Income landlords want for this rent
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- Do you pass the 40x test?
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- This rent as % of gross income
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- This rent as % of take-home pay
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- Rent plus debts as % of gross income
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Rules of thumb, not lending rules. Landlords set their own income requirements.
Three ways to set a rent budget
- The 30% rule: keep rent at or below 30% of your gross (pre-tax) monthly income. Federal housing policy generally treats housing that costs no more than 30% of income as affordable, and government statistics call households that spend more than 30% cost-burdened and those above 50% severely cost-burdened.
- The 40x rule: many landlords, especially in New York City, want your gross annual income to be at least 40 times the monthly rent. A $2,000 apartment needs $80,000 a year. Some ask for more, and a guarantor usually has to meet the same or a higher bar.
- The 50/30/20 budget: split take-home pay into 50% for needs, 30% for wants and 20% for savings and extra debt payments. Rent is a need, so it has to fit into the 50% together with minimum debt payments, utilities, groceries, insurance and transportation.
The 30% rule and the 40x rule give the same answer. Forty times the monthly rent equals the annual income when rent is one fortieth of yearly pay, and one fortieth of a year's income is exactly 30% of one month's income. The calculator shows both because landlords phrase it one way and budgeting guides the other.
Rent at 30% of income
| Gross annual income | Monthly rent at 30% |
|---|---|
| $40,000 | $1,000 |
| $50,000 | $1,250 |
| $60,000 | $1,500 |
| $75,000 | $1,875 |
| $100,000 | $2,500 |
| $150,000 | $3,750 |
Income landlords look for (40x)
| Monthly rent | Income needed |
|---|---|
| $1,200 | $48,000 |
| $1,500 | $60,000 |
| $2,000 | $80,000 |
| $2,500 | $100,000 |
| $3,000 | $120,000 |
Why debts matter
The 30% rule looks only at income, so two people on the same salary get the same answer even if one of them pays $800 a month toward a car and student loans. The 50/30/20 budget catches this. On a $50,000 salary the 30% rule allows $1,250. If take-home pay is $3,400 a month, debt payments are $250 and other essentials are $600, half of take-home pay leaves only $850 for rent. A $1,500 apartment would take 36% of gross income and 44.1% of take-home pay, and rent plus debts would reach 42% of gross income.
How many renters are stretched
Paying more than 30% is common. Using the 2024 American Community Survey, the Congressional Research Service found that 22.7 million renter households, or 49.4% of all renters, were cost-burdened, and 26.2% of renter households spent more than half of their income on housing.
Other moving costs to budget for
- Security deposit, first month's rent and sometimes last month's rent, often due before you move in.
- Application and credit check fees for each place you apply to.
- Utilities that aren't included in the rent, plus internet and renters insurance.
- Moving costs, furniture and any parking or pet fees.
FAQ
Is the 30% rule based on gross or take-home pay?
Gross pay, the amount before taxes and deductions. That's why it can feel tight: 30% of gross pay is a much bigger slice of what actually lands in your account. In the example above, a $1,600 rent is 25.6% of gross income but 33.3% of take-home pay.
What if I don't meet the 40x income requirement?
Ask whether the landlord accepts a guarantor or co-signer, proof of savings, a larger deposit or prepaid rent where local law allows it. Smaller landlords are sometimes flexible for applicants with strong credit.
Should I count a roommate's or partner's income?
Yes, if they will be on the lease. Landlords usually add up the income of everyone signing. For your own budget, use your share of the rent and your own take-home pay.
Does the rent budget include utilities?
Government cost-burden figures use gross rent, which adds utilities to the rent. If utilities are not included in your lease, subtract an estimate from the rent budget or include them in other essentials.
Related calculators
- Home Affordability CalculatorHow much house you could buy instead
- Rent vs Buy CalculatorCompare renting with owning over time
- Paycheck Calculator 2026Work out your monthly take-home pay
Sources
- Congressional Research Service: Housing cost burdens in 2024, in brief (R48945) · May 13, 2026
- StreetEasy: Rent-to-income ratio and the 40x rule
- Experian: What is the 50/30/20 rule?
- Citizens: What is the 50/30/20 budget rule?
Figures current as of October 13, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.