RentCalc / 30% rule
30% rule rent calculator
Thirty percent of your gross income is the classic rent ceiling. Enter your pay to get that number, or enter a rent to see the salary it takes.
30% of your income
$1,250
max rent per month
25%, 30% or 33%? Same pay, different ceilings
| Share of gross | Max rent / month | Where it comes from |
|---|---|---|
| 25% | $1,042 | Original Brooke Amendment cap; a cautious budget |
| 28% | $1,167 | Mortgage lenders' traditional front-end ratio |
| 30% | $1,250 | The standard rule and HUD cost-burden line |
| 33% | $1,375 | Same as the landlord 3x-income rule |
| 35% | $1,458 | A stretch; workable only with low other costs |
The 30% rule formula
Max rent = annual gross income ÷ 12 × 0.30. Reversed, income needed = monthly rent ÷ 0.30 × 12, which is the same as rent × 40. That's why the NYC "40x rule" and the 30% rule always agree.
The rule ignores taxes, debts and where you live. Two people on $60,000 get the same $1,500 answer even if one of them has a $500 car payment. The full affordability calculator adds a debt check and a 50/30/20 check on take-home pay, so it can tell when 30% is too much for you.
Quick lookups: rent by salary · income needed for a rent
Questions people ask
What is the 30% rule for rent?
Spend no more than 30% of your gross (pre-tax) monthly income on rent. Divide your annual salary by 12, then multiply by 0.30. On $50,000 a year that is $4,167 a month, so the most you would spend on rent is $1,250.
Where does the 30% rule come from?
From US federal housing policy. The Brooke Amendment (1969) capped public-housing rent at 25% of a tenant's income, and the cap was raised to 30% in the early 1980s. HUD still uses 30% of income as its line for being "cost-burdened" by housing.
Is the 30% rule realistic?
It's a ceiling, not a target. In expensive cities many renters pay more. HUD's data and Harvard's Joint Center for Housing Studies have repeatedly reported that roughly half of US renter households are cost-burdened. If you have large debt payments or support dependents, aim lower, around 25%. With few other costs, a little above 30% can work.
Should utilities be included in the 30%?
HUD's definition of housing cost includes utilities, so the strict version counts rent plus utilities. Turn on "Include utilities" in the calculator to subtract them from the 30% budget.
How much rent can I afford making $20 an hour?
Full time (2,080 hours a year), $20 an hour is $41,600 a year, or $3,467 a month before tax. 30% of that is $1,040 a month, so a $1,000 apartment fits the 30% rule with a little to spare.