How Much Rent Can I Afford?

Quick answer: the 30% rule and the 40× rule

The most widely used benchmark is to keep housing costs at or below 30% of your gross (before-tax) income. HUD calls households that pay more than 30% of income for housing "cost-burdened," and those paying more than 50% "severely" burdened (HUD PD&R). On a $60,000 salary, 30% works out to $1,500 a month.

Many landlords use a different-looking test that lands in the same place: your gross annual income should be at least 40 times the monthly rent. StreetEasy describes this as a rule "many NYC landlords and property managers subscribe to" (StreetEasy). Since 12 months ÷ 40 = 30%, the 40× rule and the 30% rule give the same answer when rent is the only cost. It's a screening convention, not a law, and some landlords ask for more. A "3× the rent" monthly test is also common; it allows rent of about 33% of gross pay.

Where the 30% line comes from

It started as a 19th-century rule of thumb: "a week's wages for a month's rent." The 1969 Brooke Amendment capped public-housing rent at 25% of income, and laws passed in 1981 and 1983 raised that cap to 30% of adjusted income (Congressional Research Service). It has been the federal yardstick ever since — useful, but not tailored to you.

How the calculator works

The calculator gives three answers side by side, because each one tells you something different.

1. The gross-income limit

Gross monthly income × 30% − utilities = maximum rent

Example: $5,000 × 30% − $200 utilities = $1,300 a month ($60,000 a year).

The calculator counts utilities as part of housing cost, the way HUD does when it measures "gross rent." If your utilities are included in the rent, leave that field at zero. You can change the 30% to a lower or higher share if you prefer a tighter or looser target.

2. The landlord test

Gross annual income ÷ 40 = highest rent most landlords will approve

Example: $60,000 ÷ 40 = $1,500 a month.

3. The debt-aware limit

If you carry car, student loan or credit card payments, the calculator also keeps rent + utilities + debt payments at or below 43% of gross income, a debt-aware check based on a common mortgage benchmark for total debt. It recommends whichever limit is lower. When you enter take-home pay, it also shows what's left each month after rent, utilities and debts.

Rent you can afford by income

These figures come straight from the calculator at the 30% setting, with no other debts. The middle column shows how $200 a month of utilities you pay yourself shrinks the rent budget.

Notice the last column equals the first rent column: the 40× test is the 30% rule in disguise. But the landlord test looks at rent alone, while the 30% rule should include utilities. So you can pass a landlord's screen and still be over 30% once the power and gas bills arrive.

Income needed for common rents

Working backwards: to keep a given rent at 30% of gross pay, multiply the monthly rent by 12 and divide by 0.30 — or simply multiply it by 40.

Median rent by state and the income it takes

The U.S. median gross rent was $1,487 a month in the Census Bureau's 2024 American Community Survey (1-year estimates), up from $1,406 in 2023 — an increase of about 5.8% in a year (ACS 2024 via Maryland Dept. of Planning; ACS 2023 via Hawaii Data Book). Over the longer 2020–2024 five-year estimates, the median was $1,413, about $100 higher than in 2015–2019 (Census Bureau).

So a typical U.S. rental needs about $59,480 a year to stay at 30%, and a typical California rental about $84,160. These are 2024 medians for all renters, including long-time tenants; if you're moving now, asking rents in your area may be higher. The 2025 ACS release date was still being set when we checked, so these remain the latest state figures.

How debt payments lower your rent budget

The 30% rule ignores what else you owe. The calculator doesn't. Here's a $60,000 earner with different monthly debt payments and no separate utilities:

At this income, debts start to bite once payments pass $650 a month. With $900 of payments, the recommended rent falls to $1,250. If debt is squeezing your housing budget, the debt payoff calculator shows how fast extra payments clear it.

Check it against your take-home pay

The 30% rule is based on gross pay, but you pay rent from take-home pay. Take a single filer in Texas earning $60,000: our paycheck calculator puts take-home pay at about $4,199 a month. With $1,500 rent, $200 of utilities and $300 of debt payments, the calculator shows $2,199 left for everything else.

That $1,700 of rent and utilities is 34% of gross pay — already over the 30% line — and 40% of take-home pay. To see whether the rest covers food, transportation, insurance and savings, put the leftover into the budget calculator, which uses the 50/30/20 split on take-home pay.

How many renters are cost-burdened?

If 30% feels out of reach, you're far from alone. Harvard's Joint Center for Housing Studies reports a record 22.7 million renter households — 49% — were cost-burdened in 2024 (JCHS 2026, via NLIHC). The Congressional Research Service, using the same data, puts it at 49.4%, with 26.2% severely burdened (paying more than half their income). By comparison, 20.7 million owners (23.9%) were cost-burdened (CRS R48945).

Cheaper units are getting scarcer: JCHS counts 5.8 million units renting for under $1,000 a month in 2024, down from 8.3 million in 2014. There is one bright spot — national rents fell 0.5% year over year in the first quarter of 2026 (NLIHC summary of JCHS).

Move-in costs and Fair Market Rents

Being able to afford the monthly rent isn't the same as being able to move in. Budget for the first month's rent, a security deposit and any application or move-in fees. California's courts note deposits are "usually 1 to 2 month's rent" there (California Courts); deposit limits and refund rules vary by state, so check your state's rules before you sign. If you're building up that cash, the emergency fund calculator can help you set a target that covers moving costs and a cushion.

Fair Market Rents and housing vouchers

If you use a Housing Choice Voucher, the number that matters is HUD's Fair Market Rent (FMR). FMRs estimate the 40th-percentile gross rent for standard-quality units in each metro area or non-metro county, and they're used to set voucher payment standards and other program limits (HUD USER). The FY2027 FMRs took effect on October 1, 2026 (Federal Register). They aren't current asking rents; they're program limits built from what recent movers paid.

If your rent is over 30%

• Look at the whole budget, not one ratio. Someone with no debt and low transportation costs can carry a higher rent than someone with a car loan. The take-home figure above is the better test.
• Cut the other fixed costs. Lower debt payments raise your debt-aware limit dollar for dollar.
• Add a roommate or a guarantor. Landlords applying the 40× test usually let combined incomes count, though StreetEasy notes a guarantor must also meet the rule — often at a higher multiple.
• Raise income. Our paycheck calculator shows what a raise or more hours would add to take-home pay.

Thinking about buying instead?

A mortgage payment comes with property tax, insurance and possibly mortgage insurance on top. The house affordability calculator uses the 28/36 rule to estimate a price range and the full monthly payment. If a down payment is the goal, the compound interest calculator shows how long your savings will take to get there.

Common questions

How much of my income should go to rent?

The federal benchmark is 30% of gross income, including utilities. HUD calls households paying more than 30% cost-burdened and more than 50% severely cost-burdened.

What is the 40× rent rule?

A landlord screening convention: your gross annual income should be at least 40 times the monthly rent. A $60,000 salary qualifies for up to $1,500. It works out to the same 30% of income, and it isn't a law.

What income do I need for a $2,000 apartment?

$80,000 a year under both the 30% rule and the 40× rule — before utilities. If you pay utilities separately, you need more to stay at 30%.

What is the median rent in the US?

$1,487 a month in 2024 (Census ACS 1-year), up from $1,406 in 2023. California was highest at $2,104 and West Virginia lowest at $883.

How many renters spend more than 30% of income on rent?

About 49% of renter households — a record 22.7 million — in 2024, and about 26% spend more than half their income.

Should I use gross or take-home pay?

Use gross pay for the 30% rule and landlord tests, since that's how they're defined. Then check the result against take-home pay in the budget calculator to make sure the rest of your costs fit.

Sources

1. Rental burdens: rethinking affordability measures — HUD Office of Policy Development and Research. Accessed October 13, 2026.
2. Housing cost burdens in 2024: in brief (R48945) — Congressional Research Service (via EveryCRSReport). Accessed October 13, 2026. May 2026.
3. What is the rent-to-income ratio? — StreetEasy. Accessed October 13, 2026.
4. Maryland ranks: American Community Survey 2024 1-year estimates — Maryland Department of Planning. Accessed October 13, 2026. State ranking tables compiled from Census Bureau ACS 2024 1-year data.
5. State of Hawaii Data Book 2024, table 14.08 — Hawaii Department of Business, Economic Development and Tourism. Accessed October 13, 2026. ACS 2023 1-year median gross rent.
6. Housing costs (ACS 2020–2024 5-year estimates) — U.S. Census Bureau. Accessed October 13, 2026.
7. The State of the Nation's Housing 2026 — Joint Center for Housing Studies of Harvard University. Accessed October 13, 2026.
8. JCHS's 2026 State of the Nation's Housing report finds cost burdens for renters continue to rise — National Low Income Housing Coalition. Accessed October 13, 2026.
9. Fair Market Rents — HUD USER. Accessed October 13, 2026.
10. Fair Market Rents for fiscal year 2027 (FR-6553-N-03) — Federal Register. Accessed October 13, 2026.
11. Security deposits — California Courts Self-Help Guide. Accessed October 13, 2026.