Rent Affordability Calculator
How much rent can you actually afford? Enter your income and debts to get a realistic number based on the 30% rule and your own budget.
How to Use This Rent Affordability Calculator
Enter three values to see how much rent fits your budget:
- Monthly Gross Income: Your total income before taxes from all sources. Use your gross (pre-tax) figure, as the 30% rule is traditionally applied to gross income.
- Existing Monthly Debts: All monthly debt payments — car loans, student loans, credit card minimums. This reduces how much you can allocate to rent.
- Income % for Housing: The percentage of income you want to spend on rent. Start with 30% (the classic rule), or try 25% for a more conservative approach.
The 30% Rule — How It Works
Adjusted Max = (Monthly Income × 0.30) − Monthly Debts
Example: $6,000 income, $400 debts
Max Rent = ($6,000 × 0.30) − $400 = $1,400/mo
The 30% rule originated from the US Department of Housing and Urban Development in 1969, which defined households spending more than 30% of income on housing as "cost-burdened." Today, many financial advisors prefer the 25% rule — leaving more room for savings, retirement, and emergencies.
Landlord Requirements
Most landlords require your monthly gross income to be at least 2.5-3x the monthly rent. For $2,000/month rent, they want $5,000-$6,000/month income. They typically verify this with pay stubs, bank statements, or tax returns.
Example: Renter on $75,000/Year Salary
Alex's Apartment Budget in Chicago, IL
| Annual Salary | $75,000 |
| Monthly Gross Income | $6,250 |
| Car Loan | $350/mo |
| Student Loan | $200/mo |
| Total Existing Debts | $550/mo |
| Max Rent (30% rule) | $1,875 − $550 = $1,325/mo |
| Recommended (25% rule) | $1,563 − $550 = $1,013/mo |
| Landlord Income Req. (3x) | $4,500 min at $1,500 rent |
Alex's debts significantly limit his rental budget. He should either pay down debts before renting, look for roommates to split costs, or find a market with lower rents relative to income.