Rent Affordability Calculator – How Much Rent Can I Afford?
Find out how much rent you can afford based on your income using the 30% rule.
Rent Affordability: The 30% Rule and Beyond
The traditional 30% rule says rent should not exceed 30% of gross monthly income. This guideline comes from a 1969 US federal housing standard and is still widely used by landlords and financial advisors — though modern housing markets in major cities have made it increasingly difficult to meet.
| Annual Income | Monthly Gross | 30% Rent Budget | Affordable at Market Rate? |
|---|---|---|---|
| ,000 | ,333 | ,000/mo | Difficult in most US metros |
| ,000 | ,000 | ,500/mo | Feasible in smaller cities |
| ,000 | ,667 | ,000/mo | Feasible in most markets |
| ,000 | ,000 | ,000/mo | Comfortable in most markets |
Many financial planners now use the 50/30/20 rule: 50% for needs (including rent), 30% for wants, 20% for savings. Under this framework, rent is one of several essential expenses competing for the 50% budget alongside utilities, groceries, and transportation. Spending over 50% of gross income on housing is considered severely rent-burdened.
What is the 30% rent rule?
Spend no more than 30% of gross monthly income on rent. On a ,000/month gross income, max rent is ,500. This leaves room for other expenses and savings.
Is the 30% rule still realistic?
In cities like New York, San Francisco, and Boston, median rents often exceed 30% of median incomes. Financial experts increasingly suggest focusing on total housing cost as a percentage of take-home pay, using 30–35% of net (not gross) income as the target.