Free rent affordability calculator
Calculate your rent-to-income ratio and the maximum rent your income supports — enter gross income and rent to see if you're within the 30% guideline, updated live, as you type.
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Results are estimates. Consult a professional.
How the rent affordability calculator works
The most widely used benchmark for housing affordability is the rent-to-income ratio: the share of your gross monthly income consumed by rent. Financial planners and lenders commonly cite 30% as the upper limit — spending more than 30% on housing is considered 'cost-burdened' by the U.S. Department of Housing and Urban Development. The calculator shows your current ratio and compares it against three thresholds.
Worked example: $75,000 salary and a $2,200/month apartment
Jordan earns $75,000 per year before taxes. They are considering an apartment at $2,200/month. Is that within the 30% guideline, and what is their maximum recommended rent?
Maximum monthly rent by income and ratio threshold
Find your annual gross income in the left column. The three columns show the maximum monthly rent at conservative (25%), standard (30%), and stretched (35%) thresholds. These figures are based on gross (pre-tax) income, as is standard for the rent ratio.
| Annual Income | 25% Max Rent | 30% Max Rent | 35% Max Rent |
|---|---|---|---|
| $40,000 | $833/mo | $1,000/mo | $1,167/mo |
| $60,000 | $1,250/mo | $1,500/mo | $1,750/mo |
| $80,000 | $1,667/mo | $2,000/mo | $2,333/mo |
| $100,000 | $2,083/mo | $2,500/mo | $2,917/mo |
| $120,000 | $2,500/mo | $3,000/mo | $3,500/mo |
Source: Rent-to-income formula on gross annual salary ÷ 12. HUD defines the 30% threshold as the standard affordability benchmark.
In high-cost metros like New York City, San Francisco, and Boston, median renters routinely pay 40–50% of income on rent, which is why local median income — not national averages — matters most when evaluating a specific market.
Tips for keeping rent affordable
The 30% rule is a starting guideline, not a guarantee of comfort. These five considerations help you set a rent budget that works for your real financial picture.
- Use net income, not gross, for a reality check — The 30% rule uses gross income by convention, but your rent is paid from take-home pay. If you are in a high tax bracket or have large 401(k) deductions, recalculate using after-tax income to see what you can actually afford without dipping into savings.
- Factor in all housing costs, not just rent — Renters insurance, utilities, parking, and pet fees add $200–$600/month in many markets. Budget for total housing cost so you are not surprised after signing the lease.
- Negotiate rent on longer leases or in shoulder seasons — Landlords in most markets prefer stable tenants over vacancies. Offering a 15-month lease or signing in November–February (when demand is lower) can earn $50–$200/month off the asking price.
- Split the ratio across roommates — A $2,400/month two-bedroom shared between two earners costs each person $1,200 — the same total that a single $40,000-income renter could not afford alone becomes well within the 25% threshold for both.
- Re-evaluate when income changes — A raise or new job is the right moment to re-run this calculator. Rather than immediately upgrading your apartment, consider redirecting the new income into savings for six months first to build an emergency fund before increasing fixed expenses.
Accuracy and limitations
The 30% rule is a historical guideline developed by the U.S. government in the 1960s when housing costs, tax rates, and household structures looked very different from today. In high-cost cities, nearly all renters exceed it regardless of income level; in lower-cost markets, many renters comfortably pay less than 20%. The ratio also ignores student loan debt, medical expenses, childcare, and other major obligations that affect what is truly affordable for a specific household.
Not financial advice — consult a financial professional for your specific situation.
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