| Income | 30% rent |
|---|---|
| $30,000 | $750 |
| $45,000 | $1,125 |
| $60,000 | $1,500 |
| $75,000 | $1,875 |
| $90,000 | $2,250 |
| $105,000 | $2,625 |
| $120,000 | $3,000 |
| $135,000 | $3,375 |
| $150,000 | $3,750 |
Where the 30% rule comes from
HUD treats households paying more than 30% of income on housing as cost-burdened, and more than 50% as severely cost-burdened. So 30% of gross income is a common ceiling: $60,000 a year supports about $1,500 a month in rent.
What landlords look for
Many landlords want gross income of about 40 times the monthly rent (for $1,500 rent, $60,000 a year), which is the same as the 30% rule. Remember utilities, renters insurance and parking when you budget.
Frequently asked questions
What is the 30% rule?
Spend no more than 30% of gross income on rent, a common US guideline.
Is the 30% rule based on gross or net income?
Gross income, before tax.
What if I have a lot of debt?
Aim lower than 30%; the 50/30/20 budget puts all needs, including rent, at 50% of take-home pay.