What is the 30% rent rule?

The 30% rule says you should spend no more than 30% of your gross monthly income on rent. For example, if you earn $5,000/month, your max rent should be $1,500. This rule was established by the U.S. government in the 1960s and is still widely used as a guideline.

Is the 30% rule still realistic today?

The 30% rule is a useful starting point, but many renters in high-cost cities spend 35–50% of income on rent. Financial experts often suggest a more conservative 25% to leave room for debt payments, savings, and emergencies. The best approach is a full budget review.

Should I use gross or net income for rent calculations?

The traditional 30% rule uses gross income (before taxes). However, budgeting with take-home pay (net income after taxes) gives a more accurate picture of what you can actually afford. Our Professional tab calculates both.

How do roommates affect rent affordability?

Splitting rent with one or more roommates dramatically improves affordability. A $2,400 apartment shared between 2 people is $1,200 each — potentially well within the 30% rule on a $48,000/year salary. Our Roommate Split tab also calculates proportional splits based on each person's income.

Rent Affordability Calculator

Calculate how much rent you can afford based on income, debt, and expenses using the 30%, 25%, and 35% rules. Includes budget-based analysis, take-home pay estimate, and roommate split calculator.

Monthly Gross Income ?

Monthly Debt Payments ?

Max Rent (30% rule)

—

Comfortable Rent (25%) —

Stretch Rent (35%) —

Suggested Rent-to-Income Ratio —

Extended More scenarios, charts & detailed breakdown ▾

Annual Salary

Max Rent (30% rule)

—

Comfortable Rent (25%) —

Monthly Gross Income —

Professional Full parameters & maximum detail ▾

Annual Gross Salary

Estimated Tax Rate

Utilities

Food & Groceries

Transportation

Insurance (all)

Subscriptions & Misc

Debt Payments

Emergency Fund Monthly

Savings & Investments

Income

Gross Monthly Income —

Estimated Take-Home Pay —

Budget Analysis

Total Monthly Expenses —

Available for Rent —

Rent Affordability

Max Rent (30% gross) —

Your Rent-to-Income Ratio —

Affordability Verdict —

How to Use This Calculator

Enter your monthly gross income and monthly debt payments for a quick estimate using the 30%, 25%, and 35% rules.
Use the Income-Based tab to calculate from your annual salary.
Use the Budget-Based tab to enter all monthly expenses and see what is left for rent.
Use the Roommate Split tab to calculate equal or income-proportional rent splits between 2–3 people.
Use the Professional tab for a full analysis including estimated take-home pay, all expenses, and an affordability verdict.

Formula

30% Rule: Max Rent = Monthly Gross Income × 0.30
Budget Method: Available for Rent = Take-Home Pay − All Expenses
Roommate Income Split: Each Share = Total Rent × (Person Income / Total Income)

Example

Example: Annual salary $72,000. Monthly gross = $6,000. 30% rule: max rent = $1,800. After taxes (25%) and all expenses ($1,800), available for rent = $2,700 take-home − $1,800 expenses = $900 strictly available — consider a roommate in high-cost areas.

Frequently Asked Questions

The 30% rule says you should spend no more than 30% of your gross monthly income on rent. For example, if you earn $5,000/month, your max rent should be $1,500. This rule was established by the U.S. government in the 1960s and is still widely used as a guideline.
The 30% rule is a useful starting point, but many renters in high-cost cities spend 35–50% of income on rent. Financial experts often suggest a more conservative 25% to leave room for debt payments, savings, and emergencies. The best approach is a full budget review.
The traditional 30% rule uses gross income (before taxes). However, budgeting with take-home pay (net income after taxes) gives a more accurate picture of what you can actually afford. Our Professional tab calculates both.
Splitting rent with one or more roommates dramatically improves affordability. A $2,400 apartment shared between 2 people is $1,200 each — potentially well within the 30% rule on a $48,000/year salary. Our Roommate Split tab also calculates proportional splits based on each person's income.

Related Calculators

Sources & References (5) ▾

HUD — Fair Market Rents — U.S. Department of Housing and Urban Development
CFPB — Renting a Home Resources — Consumer Financial Protection Bureau
Census Bureau — American Community Survey Housing Data — U.S. Census Bureau
Bureau of Labor Statistics — Rent CPI Component — U.S. Bureau of Labor Statistics
Federal Reserve — Rental Market Conditions — Federal Reserve