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Find out how much rent you can afford based on income and expenses
Rent affordability is a measure of how much of your income can be safely allocated to housing costs. The traditional "30% rule" recommends spending no more than 30% of gross monthly income on rent, though the 50/30/20 budgeting rule offers a more nuanced framework.
30% Rule Maximum Rent
$1,800.00
Based on $6,000.00/mo gross income
50/30/20 Rule Max
$1,800.00
Conservative Max
$3,300.00
Conservative estimate after debts, savings, and living expenses.
| Annual Income | Gross/Month | Max Rent |
|---|---|---|
| $35,000 | $2,917 | $875 |
| $50,000 | $4,167 | $1,250 |
| $60,000 | $5,000 | $1,500 |
| $75,000 | $6,250 | $1,875 |
| $100,000 | $8,333 | $2,500 |
| $120,000 | $10,000 | $3,000 |
Formula
Max Rent (30% Rule) = Gross Monthly Income × 0.30Gross Monthly Income = Annual salary ÷ 12, before taxes
0.30 = The 30% threshold recommended by housing agencies
Worked Example
$72,000/year income: how much rent is affordable?
Did you know? As of 2024, the national median asking rent in the US was $1,987/month: exceeding the 30% threshold for households earning less than $79,500/year. Over 21 million renter households are considered cost-burdened, spending more than 30% of income on rent (source: U.S. Census Bureau American Housing Survey).
Sources
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