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How Much Rent Can I Afford?

How much rent can I afford? Enter your monthly household income and the calculator shows the rent that fits at a 30% share (or your own percentage), including and excluding utilities. Or turn it around: enter the rent of an apartment you like to see what share of your income it takes and what income landlords would usually expect.

Example: What do you want to know: Maximum rent for my income · Gross monthly household income 4,500 $ · Share of income for rent 30 % · Utilities not included in rent 150 $ → Result: Up to $1,350 a month in total housing cost. Source: HUD USER – Defining Housing Affordability (households paying more than 30 percent of income for housing are cost burdened). Updated: .

$
All household income before taxes – HUD’s 30% standard and most landlords use gross income
%
Rule of thumb: 30%; above 40% counts as overburdened
$
Monthly electricity, heating, water; 0 if rent covers everything
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Result

Result
Up to $1,350 a month in total housing cost
Base rent and income needed
of which about $1,200 base rent (with $150 utilities)
After rent
$3,150 left after rent
Maximum rent by share of income
ShareTotal rentBase rentleft over
25 %$1,125$975$3,375
30 %$1,350$1,200$3,150
33.3 %$1,500$1,350$3,000
40 %$1,800$1,650$2,700
Working
$4,500 × 30% = $1,350 total; minus $150 utilities = $1,200 base rent; $4,500 − $1,350 = $3,150 left.

How it is calculated

What share of income should go to rent?

There is no legal limit, but there are benchmarks. The U.S. Department of Housing and Urban Development (HUD) calls households “cost burdened” when they pay more than 30% of their income for housing, and “severely” burdened above 50%. Many landlords in the US ask for a gross income of about three times the rent – roughly a 33% share; that is a common practice, not a law. Eurostat, the EU statistics office, speaks of housing cost overburden when housing costs exceed 40% of disposable income.

How the calculator works

Gross or net?

HUD’s 30% refers to gross income, so this US version uses gross income as well. Your take-home pay is lower: a 30% share of gross income can be 35–40% of what actually lands in your account. If money is tight, test a lower share, for instance 25%, and look at the table for the amount left after rent. To estimate what heating and electricity will add, use the electricity cost calculator; the square footage calculator helps compare apartment sizes.

Limits of the rule

A fixed percentage fits nobody exactly: with student loans or childcare there is less room, with a very high income 30% may be far more than you need to spend. Treat the result as a starting point for your own budget.

Frequently asked questions

What percent of income should go to rent?

The common rule of thumb is 30% of gross income, the standard HUD uses to define “cost burdened” households. Above 40% Eurostat speaks of overburden.

How much rent can I afford making $70,000 a year?

$70,000 is about $5,833 a month; 30% of that is roughly $1,750 in monthly rent including utilities.

What does “three times the rent” mean?

Many landlords want a gross income of at least three times the monthly rent, which equals a rent share of about 33%. It is a common requirement, not a law.

How much rent can I afford at $20 an hour?

Full-time at $20 an hour is about $3,467 gross per month (40 hours × 52 weeks ÷ 12). At 30% that is around $1,040 a month.

How do I check whether one apartment is too expensive?

Choose “Is this apartment too expensive?” and enter the rent. The calculator shows the share of your income and the income you would need for your target share.

Sources and legal basis

As of:

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