Knowing how much rent you can afford prevents financial stress and ensures you still have room for savings, debt payments, and life. Here’s how to calculate your number.
The 30% Rule
The most common guideline: spend no more than 30% of gross monthly income on rent.
| Annual Salary | Gross Monthly | 30% of Gross | 25% of Gross |
|---|---|---|---|
| $30,000 | $2,500 | $750 | $625 |
| $35,000 | $2,917 | $875 | $729 |
| $40,000 | $3,333 | $1,000 | $833 |
| $45,000 | $3,750 | $1,125 | $938 |
| $50,000 | $4,167 | $1,250 | $1,042 |
| $60,000 | $5,000 | $1,500 | $1,250 |
| $70,000 | $5,833 | $1,750 | $1,458 |
| $75,000 | $6,250 | $1,875 | $1,563 |
| $80,000 | $6,667 | $2,000 | $1,667 |
| $100,000 | $8,333 | $2,500 | $2,083 |
| $125,000 | $10,417 | $3,125 | $2,604 |
| $150,000 | $12,500 | $3,750 | $3,125 |
A Better Rule: 30% of Take-Home Pay
The 30% of gross rule was created in 1981 when tax rates are different. Many advisors recommend using take-home pay instead:
| Annual Salary | Monthly Take-Home (est.) | 30% of Take-Home | Difference vs. Gross Rule |
|---|---|---|---|
| $30,000 | $2,100 | $630 | -$120 |
| $50,000 | $3,400 | $1,020 | -$230 |
| $75,000 | $4,800 | $1,440 | -$435 |
| $100,000 | $6,200 | $1,860 | -$640 |
| $150,000 | $8,800 | $2,640 | -$1,110 |
The take-home method is more conservative but leaves more breathing room for savings and debt.
What Landlords Require
Most landlords use the 3× monthly rent rule for gross income:
| Monthly Rent | Required Gross Income | Required Annual Salary |
|---|---|---|
| $800 | $2,400/month | $28,800 |
| $1,000 | $3,000/month | $36,000 |
| $1,200 | $3,600/month | $43,200 |
| $1,500 | $4,500/month | $54,000 |
| $1,800 | $5,400/month | $64,800 |
| $2,000 | $6,000/month | $72,000 |
| $2,500 | $7,500/month | $90,000 |
| $3,000 | $9,000/month | $108,000 |
How Much Rent by Hourly Wage
| Hourly Wage | Annual Salary | Max Rent (30% gross) | Max Rent (30% take-home) |
|---|---|---|---|
| $15/hr | $31,200 | $780 | $660 |
| $18/hr | $37,440 | $936 | $795 |
| $20/hr | $41,600 | $1,040 | $880 |
| $25/hr | $52,000 | $1,300 | $1,085 |
| $30/hr | $62,400 | $1,560 | $1,280 |
| $35/hr | $72,800 | $1,820 | $1,475 |
| $40/hr | $83,200 | $2,080 | $1,660 |
Total Housing Costs (Not Just Rent)
Remember to include everything, not just base rent:
| Cost | Typical Range |
|---|---|
| Base rent | Your calculated amount |
| Renter’s insurance | $15-$30/month |
| Utilities (not included) | $100-$250/month |
| Parking (urban areas) | $50-$200/month |
| Pet rent/deposit | $25-$75/month |
| Total additional costs | $190-$555/month |
Factor these in — if your rent budget is $1,500, your base rent should be $1,000-$1,300 to cover extras.
When You’re Rent-Burdened
The HUD defines “rent-burdened” as spending more than 30% of income on housing, and “severely burdened” at 50%+:
| Status | Share of Income | % of U.S. Renters |
|---|---|---|
| Comfortable | Under 30% | ~50% |
| Rent-burdened | 30-50% | ~25% |
| Severely burdened | Over 50% | ~25% |
About half of all U.S. renters are cost-burdened.
Key Takeaways
- The 30% rule: spend no more than 30% of gross income on rent — or better, 30% of take-home
- Landlords require 3× monthly rent in gross income to approve your application
- Include utilities, insurance, and parking in your total housing budget
- On $50K salary, max rent is about $1,000-$1,250 depending on which rule you use
- Half of U.S. renters exceed the 30% threshold — if you do, prioritize reducing housing costs
- Use our budget calculator to see how rent fits into your total spending plan