How much rent can I afford based on my salary?
A common starting point is 30% of gross income, minus utilities and renters insurance. On $50,000, that's $1,050 a month after $200 of bills. On $70,000, it's $1,550. On $100,000, it's $2,300. The table shows all three rules side by side, using the calculator's example costs.
| Salary | Take-home a month | 30% rule | 50/30/20 share | Total-debt limit |
|---|---|---|---|---|
| $40,000 | $2,860 | $800 | $30 | $700 |
| $50,000 | $3,530 | $1,050 | $365 | $1,000 |
| $60,000 | $4,199 | $1,300 | $700 | $1,300 |
| $65,000 | $4,534 | $1,425 | $867 | $1,450 |
| $70,000 | $4,840 | $1,550 | $1,020 | $1,600 |
| $75,000 | $5,133 | $1,675 | $1,166 | $1,750 |
| $80,000 | $5,426 | $1,800 | $1,313 | $1,900 |
| $90,000 | $6,012 | $2,050 | $1,606 | $2,200 |
| $100,000 | $6,598 | $2,300 | $1,899 | $2,500 |
| $150,000 | $9,483 | $3,550 | $3,341 | $4,000 |
Read the columns as a range, not a verdict. The 30% rule is simple, but it doesn't know you have a car payment. The 50/30/20 share knows your other needs, so it's the one most likely to surprise you at lower incomes, when food and transport take a bigger part of each paycheck. Your budget is a choice you make inside that range.
Your state and local taxes, health premiums, and retirement contributions lower take-home further, which makes the 50/30/20 column smaller than shown. Enter your real paycheck amount in the calculator for an exact figure, or check it with the paycheck calculator.
How do the 30% rule, 50/30/20, and a total-debt limit work?
Each asks a different question, and none is a law. They often disagree, which is the useful part.
- The 30% rule. The Census Bureau reports that HUD considers households spending more than 30% of income on housing to be cost-burdened, and that HUD's housing costs include rent, utilities, and other fees. So utilities belong inside the 30%. It uses gross income and ignores your debts.
- The 50/30/20 share. The Consumer Financial Protection Bureau (CFPB) describes it as a common rule of thumb on take-home pay, with 50% for needs. In this calculator, rent shares that 50% with groceries, transport, and minimum debt payments. Its answer depends on your other needs, and the CFPB says consumers sometimes find rules like this hard to apply to their own lives.
- A total-debt limit. The CFPB defines debt-to-income as monthly debt payments over gross income, and says limits vary by loan and lender. We apply the idea to renting with a 36% limit on rent, bills, and debts together. That percentage is a rule of thumb, so set your own.
The calculator's budget is the lower of the 30% rule and the total-debt limit, since those need only your income and debts. In our example, that's $1,425. At that rent, needs would take 62% of take-home pay, well over 50%. That gap is why a rent that "fits the rule" can still feel tight.
Debt can change the answer too. With $800 of monthly debt payments instead of $300, the 30% rule still says $1,425, but the total-debt limit falls to $950. If debt is the squeeze, the debt payoff calculator can show what clearing it would free up.
How much rent can I afford making $20 an hour?
At $20 an hour and 40 hours a week, you'd earn $41,600 a year, so the 30% rule leaves about $840 for rent after $200 of bills. Choose "Hour" in the calculator to enter any wage and schedule.
| Hourly pay | Yearly gross | 30% rule | Total-debt limit | 50/30/20 share |
|---|---|---|---|---|
| $18.00 | $37,440 | $736 | $623 | $0 |
| $20.00 | $41,600 | $840 | $748 | $84 |
| $22.00 | $45,760 | $944 | $873 | $223 |
| $25.00 | $52,000 | $1,100 | $1,060 | $432 |
| $30.00 | $62,400 | $1,360 | $1,372 | $780 |
What income do I need for a given rent?
Run the rules in reverse. For $1,800 of rent plus $200 of bills, the 30% rule needs $80,000 a year in gross income. A budget that meets 50/30/20 with our example costs needs about $96,617.
Landlords may use a separate test. Some ask for monthly income of a set multiple of rent. Practices vary by landlord and place, and the CFPB's report on tenant screening cites one screening company's guide listing income under 3 times rent as a possible reason for denial or conditional approval. At 3 times, $1,800 of rent asks for $64,800 a year. A "40x" rule, stated on yearly income, asks for $72,000. Passing a screen doesn't mean the rent fits your budget, so run both.
| Rent | 30% rule | Total-debt limit | 3x rent | 40x rent |
|---|---|---|---|---|
| $1,000 | $48,000 | $50,000 | $36,000 | $40,000 |
| $1,200 | $56,000 | $56,667 | $43,200 | $48,000 |
| $1,500 | $68,000 | $66,667 | $54,000 | $60,000 |
| $1,800 | $80,000 | $76,667 | $64,800 | $72,000 |
| $2,000 | $88,000 | $83,333 | $72,000 | $80,000 |
| $2,500 | $108,000 | $100,000 | $90,000 | $100,000 |
| $3,000 | $128,000 | $116,667 | $108,000 | $120,000 |
What these rent rules leave out
- Move-in cash. A $1,800 apartment with one month's deposit and $100 of fees takes $3,700 before you unpack. Deposit rules vary by state, so ask first.
- Rent rises. A budget that barely fits today can stop fitting at renewal. Leave some room, and test next year's rent in the calculator.
- Where you live. Rules of thumb don't know your local rents. In a high-cost city, you may have to go over 30%. If you do, the 50/30/20 column shows what you'd give up elsewhere.
- Your savings goals. A rent can pass every rule and still leave no room for what you're saving toward. Try the budget calculator to see the whole month.
If rent is already out of reach, dialing 211 or visiting 211.org connects you with local housing help. A HUD-approved housing counselor can also help you build a plan. If you're weighing a purchase, see the rent vs. buy calculator.
Common questions
Is the 30% rule based on gross or net income?
Gross income, before taxes. That's why it can feel tight: 30% of gross on a $65,000 salary is about 36% of estimated take-home pay, before state tax.
How much rent can I afford on $60,000 or $80,000?
With the example costs, the 30% rule gives about $1,300 on $60,000 and $1,800 on $80,000, after $200 of utilities and insurance.
Should I include my roommate or partner’s income?
Include everyone on the lease who will pay rent, and count their debts and needs too. A landlord may look at combined income or may screen each person separately, so ask.
Do utilities count toward the 30%?
Under HUD's definition as reported by the Census Bureau, yes. A listing at 30% of your income with utilities on top puts you over that line. This calculator takes them out first.
What if I get paid differently each month?
Use a cautious average, such as your lowest few months. Rent stays the same in a slow month.
Sources
- More Than 19 Million Renters Burdened by Housing Costs · U.S. Census Bureau
- My spending rule to live by · Consumer Financial Protection Bureau
- What is a debt-to-income ratio? · Consumer Financial Protection Bureau
- Tenant background checks market report · Consumer Financial Protection Bureau
- Find a housing counselor · Consumer Financial Protection Bureau