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Rent affordability calculator: how much rent can I afford?

Find the rent you can afford with the 30% rule and the 40× income rule landlords use, and the income you need for a specific apartment.

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Results

Maximum rent (30% of gross income)

$1,875

Maximum rent under the 40× rule

$1,875

Income landlords may require for this rent (40×)

$88,000

Maximum rent with your debts (36% total)
$1,850
This rent as a share of gross income
35.2%
Rent-burdened (over 30%)

Three common rules

Landlords, lenders and budget experts use different yardsticks to judge an affordable rent:

  • 30% rule: rent should not exceed 30% of gross monthly income. This is the threshold the Department of Housing and Urban Development (HUD) uses to define a cost-burdened household.
  • 40× rule: many landlords, especially in large cities, ask for an annual gross income of at least 40 times the monthly rent. That works out to the same 30% on a monthly basis.
  • 36% debt rule: rent plus other monthly debts, such as car and student loans, should stay under about 36% of gross income.

Worked example

You earn $75,000 a year, pay $400 a month in other debts and are looking at a $2,200 apartment.

  1. Gross monthly income: 75,000 ÷ 12 = $6,250.
  2. 30% rule: 6,250 × 0.30 = $1,875.
  3. 40× rule: 75,000 ÷ 40 = $1,875.
  4. With debts: 6,250 × 0.36 − 400 = $1,850.
  5. Income the landlord may require for $2,200: 2,200 × 40 = $88,000.
  6. This rent would take 35.2% of your gross income, so you would be rent-burdened.

Burden levels

Share of gross income HUD category What it means
30% or less not cost-burdened room for savings and other goals
30 to 50% cost-burdened budget is tight
over 50% severely cost-burdened high risk of falling behind

If you do not meet the income requirement

  • Add a guarantor who earns 80 times the rent, a common requirement in New York.
  • Use an institutional guarantor service, for a fee.
  • Show savings or offer several months of rent upfront where local law allows it.
  • Add a roommate and split the rent.

Beyond the rule of thumb

The 30% rule uses gross income, so it can be too generous for high earners in high-tax states and too strict for some low-income households. Also budget for utilities, renter’s insurance, parking and a security deposit, and compare the result with a full monthly budget.

This calculator gives estimates for education and planning. It is not investment, tax or legal advice; for decisions about your own situation, talk to a qualified financial professional.

Frequently asked questions

How much rent can I afford on my salary?

The classic guideline is 30% of gross income. On $75,000 a year, that is $6,250 a month and a maximum rent of about $1,875.

What is the 40 times rent rule?

Many landlords, especially in New York and other big cities, require an annual gross income of at least 40 times the monthly rent. A $2,200 apartment therefore needs $88,000 a year, or a guarantor.

What does rent-burdened mean?

The Department of Housing and Urban Development considers a household cost-burdened when it spends more than 30% of income on housing and severely cost-burdened above 50%.

Should I count my debts when budgeting for rent?

Yes. A common lender-style check keeps rent plus other debt payments under about 36% of gross income. With $400 of monthly debts on $75,000, that leaves about $1,850 for rent.

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Results are estimates provided for information purposes. They do not replace professional advice.

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