Three ways to size your rent
- 30% rule: rent up to 30% of gross monthly income. On $5,000 a month, that's $1,500.
- 40x rule: landlords often want yearly income of at least 40 times the rent, the same $1,500 on a $60,000 salary.
- Debt-adjusted: keep rent plus debt payments under about 36% of gross income. With $300 of monthly debts on $5,000 a month, rent should stay under $1,500.
The calculator recommends the lowest of these, so your rent fits every test.
Rent and salary quick reference
| Yearly gross income | Max rent (30%) | Income needed by landlords (40x) |
|---|
| $40,000 | $1,000 | $1,000 rent |
| $50,000 | $1,250 | $1,250 rent |
| $75,000 | $1,875 | $1,875 rent |
| $100,000 | $2,500 | $2,500 rent |
Build the rest of your plan with the budget calculator, or see whether buying could make sense with the rent vs buy calculator. Converting an hourly wage? Use the salary to hourly calculator.
Last reviewed October 2026.
Frequently asked questions
How much rent can I afford?
A common guideline is to spend no more than 30% of your gross (pre-tax) monthly income on rent. On a $60,000 salary, that is $1,500 a month. If you have big debt payments or live in a high-cost area, a lower share may be safer.
What is the 40x rent rule?
Many landlords and property managers require your yearly gross income to be at least 40 times the monthly rent. For a $1,500 apartment, you would need to earn $60,000 a year. Some use 3 times the monthly rent in monthly income, which is close to the same thing (36x).
Should I use gross or take-home pay?
The 30% rule and landlord checks use gross income. But your budget is paid from take-home pay, so the calculator also shows rent as a share of your net income and what is left for everything else.
What if I can't qualify on my own?
Options include a co-signer or guarantor, a roommate, a larger security deposit, showing savings, or looking for a slightly cheaper place. Some guarantor companies will co-sign for a fee.
Do utilities count toward the 30%?
Ideally, yes. Housing costs include rent plus utilities, renter's insurance and parking. Add your expected utilities in the calculator to see the full picture.