acalculator

What income do I need for this rent?

Enter any two of rent, income, and the share of income spent on rent to get the third, plus the income a landlord’s 40x rule asks for.

Your numbers

Rent as a share of income
28.8%

A rent of $1,800.00 a month on a gross income of $75,000.00 a year is 28.8% of income.

Under 30% of income

  1. Under 30% of income
  2. 30% to 50% of income
  3. 50% or more of income
Income the 40x rule asks for
$72,000.00
Rent the 30% rule allows
$1,875.00
Rent per year
$21,600.00
Gross income per month
$6,250.00

Rent as a share of income: 28.8%. A rent of $1,800.00 a month on a gross income of $75,000.00 a year is 28.8% of 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 income a rent needs, the rent an income supports, or the share of income a rent takes (fill any two), with the 40x income rule and the 30% rent rule.

Example with the default inputs (Rent $1,800.00, Gross income $75,000.00): A rent of $1,800.00 a month on a gross income of $75,000.00 a year is 28.8% of income.

Formula: rent = income ÷ 12 × share ÷ 100; the 40x rule asks for a yearly income of 40 × the monthly rent; the 30% rule allows a rent of 30% of the monthly income.

  • Income is gross (before tax) and the share is of the gross monthly income, as HUD and most landlords count it.
  • Rent is the monthly rent alone; utilities and fees are not included unless you add them to it.
  • The 30% rule and the 40x rule are rules of thumb, not laws; landlords and programs set their own limits.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Rent $1,800.00, Gross income $75,000.00 gives Rent as a share of income 28.8%, Income the 40x rule asks for $72,000.00, Rent the 30% rule allows $1,875.00, Rent per year $21,600.00, Gross income per month $6,250.00.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
  2. Rent $2,500.00, Rent as a share of income 30% gives Gross income $100,000.00, Income the 40x rule asks for $100,000.00.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
  3. Gross income $52,000.00, Rent as a share of income 25% gives Rent $1,083.33, Rent the 30% rule allows $1,300.00.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

How it works

Rent is per month and income is per year before tax; either can be entered per year or per month with the switch next to it, and the page converts at 12 months a year. Fill any two of the three values and the page finds the third.

  1. The equation: rent = income ÷ 12 × share ÷ 100, where the share is the rent as a percent of gross monthly income.
  2. Rearranged: income = 1,200 × rent ÷ share, and share = 1,200 × rent ÷ income.
  3. Limits: rent (more than 0, up to $10,000,000 a month), income (more than 0, up to $1,000,000,000 a year), and share (more than 0, up to 100%). A solved value outside its limits has no answer, for example a share over 100% (a rent above the monthly income).
  4. The 40x rule: the yearly income many landlords ask for is 40 × the monthly rent.
  5. The 30% rule: the most rent it allows is 30% of the gross monthly income: 0.30 × income ÷ 12, which equals income ÷ 40. So a rent meets the 30% rule exactly when the income meets the 40x rule.
  6. Other values: rent per year = 12 × rent; gross income per month = income ÷ 12.
  7. Bands: a share under 30% shows as under 30% of income; from 30% up to 50% as 30% to 50%; 50% or more as 50% or more.

Assumptions

  • The share is of gross (before-tax) income, as HUD and most landlords count it.
  • The rent is the rent alone; utilities, parking, and fees are not included unless you add them.
  • The 30% rule and the 40x rule are rules of thumb, not laws.

Worked examples by hand

$1,800 a month on $75,000 a year. Monthly income is 75,000 ÷ 12 = $6,250, so the share is 1,800 ÷ 6,250 = 28.8%. The 40x rule asks for 40 × 1,800 = $72,000, which $75,000 meets; the 30% rule allows 0.30 × 6,250 = $1,875. Rent per year is $21,600.

The income a $2,500 rent needs at 30%. income = 1,200 × 2,500 ÷ 30 = $100,000 a year, the same as the 40x rule: 40 × 2,500 = $100,000.

The rent 25% of $52,000 a year allows. rent = 52,000 ÷ 12 × 0.25 = $1,083.33 a month. The 30% rule would allow 52,000 ÷ 40 = $1,300.

Other questions people ask

How much income do I need to rent an apartment?

Many landlords ask for a yearly gross income of 40 times the monthly rent. A $2,500 rent needs $100,000 a year. Some ask for less, some for more, and a guarantor can help if you fall short.

What is the 30% rule for rent?

A rule of thumb that rent should take no more than 30% of your gross (before-tax) monthly income. HUD counts a household that pays more than 30% of its income for housing as cost-burdened, and more than 50% as severely cost-burdened.

Are the 40x rule and the 30% rule the same?

Yes, in effect. If rent is 30% of monthly income, the yearly income is rent ÷ 0.30 × 12 = 40 × the rent. So an income of 40 times the rent is exactly the 30% rule.

How do I find what share of my income goes to rent?

Divide the monthly rent by the gross monthly income and multiply by 100. $1,800 on $75,000 a year ($6,250 a month) is 28.8%.

Should I count roommates’ income?

Count the income of everyone who will pay the rent, if the landlord counts it too. Many landlords add up the incomes of all the tenants on the lease; some check each person against their share of the rent.

Does rent include utilities here?

No, the page uses the rent you enter. To test utilities too, add them to the rent. The rent affordability calculator on this site subtracts them for you.