How much rent can you actually afford?

What is the 30% rule?

The 30% rule is a long-standing rule of thumb stating that housing costs — rent, in this case — shouldn't exceed 30% of gross monthly income. It traces back to US federal housing assistance guidelines rather than any hard financial law, so it functions as a useful starting benchmark rather than a rule everyone must strictly follow. This calculator shows it alongside a more conservative 25% ceiling and a more aggressive 35% ceiling so you can see the full range before deciding what fits your situation.

Should I use gross or net income?

This calculator uses gross (pre-tax) monthly income, matching how the 25/30/35% guidelines and most landlord screening criteria are typically quoted. Since your actual take-home pay is lower than gross income, budgeting against gross income builds in a natural cushion — just keep in mind the percentage of your real spendable (net) income going to rent will be noticeably higher than the percentage shown here.

How do existing debts affect what I can afford?

Rent alone doesn't tell the whole story — car payments, student loans, and credit card minimums all compete for the same income. This calculator adds your existing monthly debts to the 30%-rent scenario and flags it if the combined total climbs above 40% of gross income, a commonly used combined-obligation ceiling similar to the "back-end DTI" limit mortgage lenders apply. See the dedicated Debt-to-Income Ratio Calculator for a deeper breakdown of that ratio on its own.

Landlords vs. my own comfort level — which matters more?

A landlord's income requirement (often 2.5x to 3x rent, which lines up closely with the 30-35% guidelines used here) is a screening minimum, not a recommendation for your personal budget. If you carry significant debts, have irregular income, or are chasing aggressive savings goals, the more conservative 25% ceiling may leave you in a healthier financial position even if you'd qualify for a higher rent. For a companion view of your full monthly budget rather than just the rent line item, see the Budget Calculator.

Worked example: at $6,000/month gross income with $300/month in existing debts, the three ceilings come to $1,500 (25%), $1,800 (30%), and $2,100 (35%). Checking the 30% scenario against the combined-debt guideline: $1,800 rent + $300 debts = $2,100, which is exactly 35% of gross income — comfortably under the 40% combined ceiling, so no warning appears. If existing debts were higher, say $700/month, the same $1,800 rent would push the combined total to $2,500, or 41.7% of income, and the tool would flag it.