Rent Affordability Calculator
Affordable rent, with the income basis stated. The thirty percent rule was written against take-home pay and is routinely applied to gross, which sets the budget too high by whatever you pay in tax.
Also called: how much rent can i afford, 30 percent rent rule.
$36,000.00 a month at 30% of take-home income. With 5,000 of utilities the full housing cost is $41,000.00, or 34.17% of income. You would need $108,000.00 upfront. Computed on take-home pay, which is the basis the thirty percent rule was written against. No existing debt entered. Any loan or card payment reduces what is genuinely available for rent.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
How this is calculated
The share applies to income, less existing debt payments, which reduce what is genuinely available. The basis matters more than the percentage: thirty percent of gross and thirty percent of take-home differ by the tax rate, and for a higher-rate taxpayer that is a third of the answer. Utilities are separated because the rule covers rent alone while the bill covers the household, and landlords commonly require an income multiple that is a separate test from what you can afford.
the thirty percent rule is stated on take-home pay and quoted on gross, which changes the answer by the tax rate- I
- Income
- s
- Share
Method and limits
What it assumes
- A single household income. Joint applications usually combine incomes.
What it deliberately does not model
- The thirty percent rule dates from mid-century US housing policy and fits high-cost cities badly.
- Landlord income multiples vary and are a separate constraint from affordability.
- It ignores everything else in the budget, so passing this does not mean the budget works.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Is the 30 percent rule on gross or take-home?
- Take-home, as originally stated. Applying it to gross sets the budget too high by your tax rate, which for a higher-rate taxpayer is a substantial difference.
- Why do landlords want a multiple of the rent?
- It is their affordability test rather than yours, commonly thirty to forty times the monthly rent as annual income. Passing your own budget does not guarantee passing theirs.