# What income do I need for this rent?

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.

- Page: https://www.acalculator.org/finance/rent-calculator
- JSON spec: https://www.acalculator.org/finance/rent-calculator.json
- Version: 7bf80fdad6a3

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| rent | Rent | The rent, per month (or per year with the switch). |
| income | Gross income | Income before tax, per year (or per month with the switch), of everyone who will pay the rent. |
| share | Rent as a share of income | The rent as a percent of the gross monthly income. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| rent | Rent | The rent, per month (or per year with the switch). |
| income | Gross income | Income before tax, per year (or per month with the switch), of everyone who will pay the rent. |
| share | Rent as a share of income | The rent as a percent of the gross monthly income. |
| need40x | Income the 40x rule asks for | The yearly gross income many landlords ask for: 40 times the monthly rent. |
| rent30 | Rent the 30% rule allows | The monthly rent that is 30% of the gross monthly income (the same as the yearly income ÷ 40). |
| yearlyRent | Rent per year | The monthly rent times 12. |
| monthlyIncome | Gross income per month | The yearly income ÷ 12. |

## Method

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.

## Assumptions

- 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.

## Worked examples

1. rent = $1,800.00, income = $75,000.00 gives share = 28.8%, need40x = $72,000.00, rent30 = $1,875.00, yearlyRent = $21,600.00, monthlyIncome = $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, share = 30% gives income = $100,000.00, need40x = $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. income = $52,000.00, share = 25% gives rent = $1,083.33, rent30 = $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.

## FAQ

### 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.

## Sources

- U.S. Department of Housing and Urban Development, HUD User, Rental Burdens: Rethinking Affordability Measures (the 30% of income standard; cost-burdened and severely cost-burdened households). https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html
- 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/