How much rent can I afford?
Enter your income, debt payments, and utilities to see the most rent that keeps your housing within the usual rules of thumb.
- Rent you can afford
- $1,350.00
On a gross income of $60,000.00 a year, you can afford about $1,350.00 a month in rent.
- Limited by
- 30% housing rule
- Rent by the 30% rule
- $1,350.00
- Rent by the 36% debt rule
- $1,400.00
- Rent a 40x landlord accepts
- $1,500.00
- Rent plus utilities
- $1,500.00
- Rent per year
- $16,200.00
- Gross income per month
- $5,000.00
Rent you can afford: $1,350.00. On a gross income of $60,000.00 a year, you can afford about $1,350.00 a month in rent.
Rent you can afford by gross income
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes the most rent an income can afford under the 30% rule and a 36% debt-to-income limit, after debt payments and utilities, and the rent a landlord’s 40x income rule accepts.
Example with the default inputs (Gross income $60,000.00, Monthly debt payments $250.00, Utilities and renter’s insurance $150.00): On a gross income of $60,000.00 a year, you can afford about $1,350.00 a month in rent.
Method: rent = min(0.30 × M − utilities, 0.36 × M − debts − utilities), with M = gross yearly income ÷ 12; a 40x landlord accepts rent up to the yearly income ÷ 40.
- Housing (rent plus utilities) should be at most 30% of gross monthly income, the line above which HUD counts a household as cost-burdened.
- Housing plus other debt payments should be at most 36% of gross monthly income, Fannie Mae’s limit for manually underwritten mortgages, used here as a rule of thumb.
- The 40x rule compares the rent alone with the yearly income, as landlords do.
- These are rules of thumb, not a budget: savings, taxes, and living costs vary.
Worked examples
Each example is checked against the calculator on every build.
- Gross income $60,000.00, Monthly debt payments $250.00, Utilities and renter’s insurance $150.00 gives Rent you can afford $1,350.00, Limited by 30% housing rule, Rent by the 36% debt rule $1,400.00, Rent a 40x landlord accepts $1,500.00, Rent plus utilities $1,500.00.Source: HUD User, Rental Burdens: Rethinking Affordability Measures (the 30% of income standard). https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html; Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios (36%). https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios
- Gross income $90,000.00, Monthly debt payments $900.00, Utilities and renter’s insurance $200.00 gives Rent you can afford $1,600.00, Limited by 36% debt rule, Rent by the 30% rule $2,050.00, Rent a 40x landlord accepts $2,250.00, Rent per year $19,200.00.Source: HUD User, Rental Burdens: Rethinking Affordability Measures (the 30% of income standard). https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html; Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios (36%). https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios
- Gross income $36,000.00, Monthly debt payments $0.00, Utilities and renter’s insurance $0.00 gives Rent you can afford $900.00, Rent a 40x landlord accepts $900.00, Gross income per month $3,000.00.Source: HUD User, Rental Burdens: Rethinking Affordability Measures (the 30% of income standard). https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html; Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios (36%). https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios
How it works
Write M for the gross monthly income (the yearly income ÷ 12; a monthly income entered with the switch is used as it is), D for the monthly debt payments, and U for the monthly utilities (each 0 when left empty).
- The 30% rule: housing (rent plus utilities) at most 30% of M, so the rent is at most 0.30 × M − U.
- The 36% debt rule: housing plus debt payments at most 36% of M, so the rent is at most 0.36 × M − D − U.
- Rent you can afford: the smaller of the two. When they are equal, the page names the 30% rule. There is no answer when the smaller one is 0 or less.
- The 40x rule: a landlord who asks for a yearly income of 40 times the rent accepts rent up to the yearly income ÷ 40 = 0.30 × M. It compares the rent alone, so the rent you can afford always passes it.
- Other values: rent plus utilities; rent per year = 12 × rent.
Assumptions
- Income is gross (before tax), as HUD, lenders, and landlords count it.
- The rules are rules of thumb, not a budget; savings goals, taxes, and living costs vary.
- The 36% limit comes from mortgage underwriting and is used here as a guide for renters.
Worked examples by hand
$60,000 a year, $250 of debt payments, $150 of utilities. M = $5,000. The 30% rule allows 1,500 − 150 = $1,350 of rent; the 36% rule allows 1,800 − 250 − 150 = $1,400. The smaller is $1,350, set by the 30% housing rule. Housing is $1,500 a month, and a 40x landlord accepts rent up to 60,000 ÷ 40 = $1,500.
$90,000 a year, $900 of debt payments, $200 of utilities. M = $7,500. The 30% rule allows 2,250 − 200 = $2,050; the 36% rule allows 2,700 − 900 − 200 = $1,600. The debts set the limit: $1,600 a month ($19,200 a year), by the 36% debt rule. A 40x landlord would accept up to $2,250.
$36,000 a year, no debts, no utilities. M = $3,000, so the 30% rule allows $900 and the 36% rule $1,080. The rent you can afford is $900, the same as the 40x rule: 36,000 ÷ 40 = $900.
Other questions people ask
How much rent can I afford on my salary?
A common rule is to keep rent and utilities at or under 30% of your gross monthly income. On $60,000 a year ($5,000 a month) that is $1,500 for housing; with $150 of utilities, $1,350 of rent.
Why does the page also use a 36% rule?
Debts compete with rent. Mortgage lenders such as Fannie Mae limit housing plus all other debt payments to 36% of gross income for manually underwritten loans; the page borrows that limit, so large car or student loan payments lower the rent you can afford.
What is the 40x rule?
Many landlords want your yearly gross income to be at least 40 times the monthly rent, so $60,000 a year qualifies for rent up to $1,500. It is the 30% rule in another form, applied to the rent alone.
Should I use my gross or take-home pay?
The 30% rule, HUD’s cost-burden measure, and landlords’ income checks all use gross income, before tax. If your take-home pay is much lower than usual (large deductions or high taxes), aim below the result.
What counts as a monthly debt payment?
Car loans, student loans, personal loans, credit card minimum payments, and child support or alimony you pay. Do not include rent, utilities, groceries, or insurance premiums.
Is the 30% rule a hard limit?
No. It is a guide. HUD counts households that pay more than 30% of income for housing as cost-burdened and more than 50% as severely cost-burdened, but many renters pay more by choice or need.