"How much rent can I afford?" is the first question every renter should answer — and the 30% rule is only the beginning. Here are four rules, what each one is good for, and how to find your own number.
1. The 30% rule
Spend no more than 30% of your gross (pre-tax) monthly income on rent. On $60,000 a year ($5,000/month), that's $1,500. It's simple, but it ignores debt and high-cost cities where 30% isn't realistic.
2. The 3× income rule (landlords' rule)
Many landlords require gross monthly income of at least three times the rent. It's essentially the 30% rule from the landlord's side — useful for knowing what you'll qualify for.
3. The 40× rule
Common in high-cost markets: your annual income should be at least 40 times the monthly rent. $60,000 ÷ 40 = $1,500. Guarantor services often use 80× for the guarantor.
4. The 50/30/20 budget
Put 50% of take-home pay toward needs (rent, utilities, groceries, minimum debt payments, insurance), 30% toward wants and 20% toward savings and extra debt payoff. If rent alone eats most of your 50%, it's too high.
Don't forget your debt
Car loans, student loans and card payments reduce what you can safely spend. A conservative check: keep rent plus monthly debt payments under about 36% of gross income.
Find your number
The calculator below runs all of these rules at once and tells you whether a specific rent is comfortable, a stretch or rent-burdened.
If your number is lower than the rents you see
- Get a roommate — and split fairly with our rent split calculator.
- Look one neighborhood or suburb over, and compare total cost including commute.
- Ask about move-in specials and longer leases at a lower monthly rate.
- Use a free apartment locator to find specials faster.
By the Connected Renter team. General information only — not legal or financial advice.
