# How much rent can I afford?

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.

- Page: https://www.acalculator.org/finance/rent-affordability-calculator
- JSON spec: https://www.acalculator.org/finance/rent-affordability-calculator.json
- Version: cc8ac5dc0e05

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| income | Gross income | Income before tax, per year (or per month with the switch), of everyone who will pay the rent. |
| debts | Monthly debt payments | Car, student loan, credit card minimum, and other debt payments each month. |
| utilities | Utilities and renter’s insurance | What you expect to pay each month on top of the rent: power, heat, water, internet, and insurance. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| rent | Rent you can afford | The most monthly rent that keeps housing within 30% of income and housing plus debts within 36%. |
| limit | Limited by | Which rule sets the most rent: the 30% housing rule or the 36% debt rule. |
| rent30 | Rent by the 30% rule | 30% of gross monthly income, minus the utilities. |
| rent36 | Rent by the 36% debt rule | 36% of gross monthly income, minus the debt payments and the utilities. |
| rent40x | Rent a 40x landlord accepts | The most rent for which the yearly income is at least 40 times the rent: the yearly income ÷ 40. |
| housing | Rent plus utilities | The rent you can afford plus the utilities: your housing cost each month. |
| yearly | Rent per year | The rent you can afford times 12. |
| monthlyIncome | Gross income per month | The yearly income ÷ 12. |

## 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.

## Assumptions

- 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

1. income = $60,000.00, debts = $250.00, utilities = $150.00 gives rent = $1,350.00, limit = 30% housing rule, rent36 = $1,400.00, rent40x = $1,500.00, housing = $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.
2. income = $90,000.00, debts = $900.00, utilities = $200.00 gives rent = $1,600.00, limit = 36% debt rule, rent30 = $2,050.00, rent40x = $2,250.00, yearly = $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.
3. income = $36,000.00, debts = $0.00, utilities = $0.00 gives rent = $900.00, rent40x = $900.00, monthlyIncome = $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.

## FAQ

### 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.

## Sources

- U.S. Department of Housing and Urban Development, HUD User, Rental Burdens: Rethinking Affordability Measures (the 30% of income standard, with utilities in housing costs). https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios (a maximum total debt-to-income ratio of 36% for manually underwritten loans). https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios
- StreetEasy, How much rent can you afford? (the 40x income rule many New York landlords use). https://streeteasy.com/blog/how-much-rent-can-i-afford-in-nyc/