30% rule
HUD standardGross monthly income × 0.30
$1,500/mo
30% of $5,000/mo gross
Renters
Rent affordability calculator
How much rent can you afford? See the 30% rule, the 40x rent rule landlords use, and a debt-adjusted budget side by side. Free, instant, no signup.
Last updated: July 2026
That income is
On $60,000 a year gross ($5,000 a month), here is your maximum rent under each rule:
40x rent rule
Gross annual income ÷ 40
$1,500/mo
$60,000/yr ÷ 40 — what NYC-style landlords approve
Debt-adjusted budget
Most realistic(Monthly income − debts) × 0.30
$1,380/mo
After $400/mo in debt payments
Enter a rent to see the income a landlord would ask for and whether you clear the 40x and 3x screens.
Runs in your browser — nothing you type is saved. All rules use gross (pre-tax) income; the debt-adjusted view is a budgeting heuristic, not a lending standard.
How to calculate how much rent you can afford
To calculate how much rent you can afford, multiply your gross monthly income by 0.30 (the 30% rule), or divide your gross annual income by 40 (the 40x rule landlords use) — both give the same number. On a $60,000 salary that is $1,500 a month. If you carry debt payments, subtract them from monthly income first and then take 30%: $60,000 with $400 a month in debts supports about $1,380 in rent.
- 30% rule: gross monthly income × 0.30 = max rent
- 40x rent rule: gross annual income ÷ 40 = max rent (landlord view: rent × 40 = income required)
- 3x monthly rule: gross monthly income ÷ 3 = max rent (the most common screen outside NYC)
- Debt-adjusted: (gross monthly income − monthly debt payments) × 0.30 = realistic max rent
The 30% and 40x rules are the same math in different clothes: rent at 1/40 of annual income works out to exactly 30% of gross (12 ÷ 40 = 0.30). The 3x monthly rule is slightly looser at about 33%. None of them know about your student loans or car payment — that is what the debt-adjusted view is for. And if the number looks too low for your city, remember it is per household, not per person: splitting a place changes everything. The rent split calculator shows what each roommate would actually pay.
Worked example: a $60,000 salary
$60,000 a year is $5,000 a month gross. Here is the maximum rent each rule allows, including the debt-adjusted view with $400 a month in debt payments:
| Rule | Formula | Max rent |
|---|---|---|
| 30% rule | $60,000 ÷ 12 × 0.30 | $1,500/mo |
| 40x rent rule | $60,000 ÷ 40 | $1,500/mo |
| 3x monthly rule | $5,000 ÷ 3 | $1,667/mo |
| Debt-adjusted ($400/mo debts) | ($5,000 − $400) × 0.30 | $1,380/mo |
Found a place and moving in mid-month? Your first payment probably is not a full month — check it with the prorated rent calculator.
Where the 30% and 40x rules come from
The 30% threshold is the federal government's affordability line: HUD considers households "cost burdened" when they pay more than 30% of income for housing, and severely cost burdened above 50%. The line traces back to the 1969 Brooke Amendment, which capped public-housing rent at 25% of income; Congress raised it to 30% in 1981, and it stuck as the national benchmark. The 40x rule is the rental industry's version of the same ratio, common in New York City screening; elsewhere most landlords use the looser 3x-monthly-income screen. None of these are laws — a landlord can set stricter or looser standards, as long as they apply them evenly to every applicant.
What landlords check before approving you
Knowing your budget is half the job; the other half is clearing the screening. These are the four things most US landlords look at, and how to show up ready:
| Check | What it means | How to prepare |
|---|---|---|
| Income ratio (40x or 3x rule) | NYC-style landlords want gross annual income of at least 40 × the monthly rent; most other US landlords want gross monthly income of at least 3 × the rent. Both are industry conventions, not laws. | Know your gross annual and monthly income before you apply; include all verifiable sources. |
| Income verification documents | Recent pay stubs (usually 2–3), a W-2 or full tax return, and bank statements are the standard proof. New job? An offer letter on company letterhead works. Self-employed applicants typically show 1099s or tax returns plus bank statements. | Gather the documents as PDFs before touring so you can apply the same day. |
| Credit and background screening | Most landlords run a credit report and look at payment history, debts in collections, and prior evictions. There is no universal minimum score — smaller landlords often weigh income and references more heavily than the number. | Check your own report first and be ready to explain any negative marks up front. |
| Guarantor or co-signer fallback | If your income falls short of the ratio, many landlords accept a guarantor — conventionally earning about 80 × the monthly rent where the 40x rule is used — or an institutional guarantor service, or a larger deposit or prepaid months where state law allows it. | Line up your guarantor and their documents before you apply, not after a rejection. |
This is general information, not legal or financial advice. The 30%, 40x, and 3x figures are guidelines and screening conventions verified in July 2026, not statutes; individual landlords set their own criteria within fair-housing law.
Rent affordability FAQ
What percentage of my income should go to rent?
The standard benchmark is 30% of gross (pre-tax) income. It comes from HUD, which considers households paying more than 30% of income for housing "cost burdened" and those paying more than 50% severely cost burdened. It is a budgeting guideline, not a law — in expensive metros many renters land above it.
What is the 40x rent rule?
A screening standard made famous by New York City landlords: your gross annual income should be at least 40 times the monthly rent — $80,000 a year for a $2,000 apartment. It is the same ratio as the 30% rule (12 ÷ 40 = 30%), just expressed as an income requirement. It is common practice, not a law, and guarantors are conventionally asked to earn 80x.
How do landlords verify income?
Typically with 2–3 recent pay stubs plus a W-2 or tax return, and often bank statements. Starting a new job? An offer letter on company letterhead usually works. Self-employed applicants show 1099s or tax returns and bank statements. Many landlords also call the employer to confirm.
Do these rules use gross or net income?
Gross — income before taxes and deductions. Both the 30% rule and the 40x rule are defined on gross income, and that is the number landlords screen against. For your own budget, checking the result against take-home pay is smart: 30% of gross can be 40% or more of net.
What if I can't afford the rent on my own?
Roommates are the usual fix: landlords screen combined household income, so two people earning $45,000 each clear the 40x rule on a $2,200 apartment that neither could rent alone. A guarantor (conventionally earning 80x the rent) or an institutional guarantor service is the other common route.
Next step
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