How Much Rent Can I Afford?

The 30% Rule Explained

The "30% rule" is a popular guideline suggesting you spend no more than 30% of your gross (pre-tax) income on rent. For example, if you earn $60,000/year ($5,000/month), you'd aim for $1,500/month or less in rent.

However, this rule has limitations:

• It doesn't account for your other debts
• It uses gross income, not take-home pay
• It doesn't consider your savings goals
• It may not reflect the cost of living in your area

A Better Approach

Our calculator takes a more comprehensive approach by considering:

• Your actual take-home pay (after estimated taxes)
• Existing debt payments that reduce your available income
• Utility costs that add to your housing expense
• Your savings goals (because rent shouldn't prevent you from building wealth)

What Landlords Look For

Most landlords require tenants to have income of 2.5x to 3x the monthly rent. If you're applying for a $1,500/month apartment, you'll typically need to show at least $4,500/month ($54,000/year) in income.

What to Include in Your Rent Budget

• Utilities: Electric, gas, water, trash, and internet can add 10–20% to the headline rent.
• Up‑front costs: Security deposit, broker fees (if any), application fees, and move‑in costs.
• Renter’s insurance: Low cost, but many leases require it.
• Parking: In dense neighborhoods, monthly parking can rival a utility bill.

How to Use the Result

Treat the calculator’s range as a planning tool. If the number feels tight, aim lower and keep flexibility for savings, emergency funds, or future moving costs.