RentCalc / Rent-to-income
Rent-to-income ratio calculator
For tenants: will I qualify for this apartment? For landlords: does this applicant's income cover the rent? Check it against 3x, 2.5x and the NYC 40x rule.
Rent-to-income ratio
30.0%
Income is 3.33× the rent
Affordable (30% or less) HUD counts over 30% of income on housing as cost-burdened.
3x, 40x, 30%: the same rule wearing different clothes
Landlords quote multiples, budget guides quote percentages. Convert them and they land within a few points of each other:
| Rule as stated | As a monthly multiple | Rent as % of gross |
|---|---|---|
| 2.5x monthly rent | 2.5× | 40% |
| 3x monthly rent | 3× | 33.3% |
| 30% rule | 3.33× | 30% |
| 40x monthly rent, per year | 3.33× | 30% |
| 80x (NYC guarantor) | 6.67× | 15% |
So the 40x rule and the 30% rule are exactly equivalent: 40 ÷ 12 = 3.33, and 1 ÷ 3.33 = 30%. The 3x rule is a little looser, which is why someone can pass a 3x screen and still fail a 40x building on the same salary.
Income needed for common rents
| Rent | 2.5x (yearly) | 3x (yearly) | 40x rule |
|---|---|---|---|
| $1,000 | $30,000 | $36,000 | $40,000 |
| $1,250 | $37,500 | $45,000 | $50,000 |
| $1,500 | $45,000 | $54,000 | $60,000 |
| $1,750 | $52,500 | $63,000 | $70,000 |
| $2,000 | $60,000 | $72,000 | $80,000 |
| $2,250 | $67,500 | $81,000 | $90,000 |
| $2,500 | $75,000 | $90,000 | $100,000 |
| $3,000 | $90,000 | $108,000 | $120,000 |
| $3,500 | $105,000 | $126,000 | $140,000 |
| $4,000 | $120,000 | $144,000 | $160,000 |
For landlords: screening on income fairly
Apply one written standard to every applicant, since inconsistent screening is how fair-housing complaints start. Use gross income and verify it the same way each time: two recent pay stubs, an employer letter or last year's tax return. Several states and cities, including California, New York, Washington DC and New Jersey, protect "source of income", so housing vouchers and other lawful income must count. For voucher holders, apply the ratio only to the tenant's share of the rent.
If an applicant falls short, the usual alternatives are a qualified guarantor, a combined-income application with roommates, or proof of savings covering a year's rent. Some states cap security deposits, so check before asking for more upfront.
Questions people ask
What is a good rent-to-income ratio?
Rent at or below 30% of gross monthly income is the usual benchmark. The US Department of Housing and Urban Development counts households paying more than 30% as "cost-burdened" and more than 50% as "severely cost-burdened". Most landlords approve applicants up to about 33%, which is the 3x rule.
What does 3x the rent mean?
Your gross monthly income has to be at least three times the monthly rent. For a $1,800 apartment that is $5,400 a month, or $64,800 a year.
What is the 40x rent rule?
Common in New York City: your annual gross income must be at least 40 times the monthly rent. A $2,500 apartment needs $100,000 a year. Guarantors are usually held to 80x.
Do landlords count a roommate's or co-signer's income?
Roommates on the same lease are often assessed on combined income, though some landlords require each person to meet a share of it. A guarantor (co-signer) usually has to earn much more, commonly 80x the monthly rent in NYC or 4–5x elsewhere.
What counts as income for rental applications?
Gross wages or salary, plus documented self-employment income, benefits, alimony, pensions and sometimes savings (some landlords accept a year's rent in the bank instead). Expect to show pay stubs, an offer letter, tax returns or bank statements.