Rent Calculator
Find out how much rent you can afford using the 30% rule and see conservative vs. stretched limits.
Inputs
Car loans, student loans, etc. Not utilities or food.
If utilities are included in rent, the total is already counted in the 30% budget.
Gas, electric, internet. Subtracted from your rent budget.
Recommended Max Rent (30%)
$1,725
Conservative Max Rent (28%)
$1,600
Stretched Max Rent (35%)
$2,038
Annual Rent at 30% Rule
$20,700
Gross Monthly Income
$6,250
Total Housing + Debt Ratio
27.6%
Rent plus existing debts as a percentage of gross income.
Utilities Deducted
$150
Step by step
Gross monthly income
$75,000 ÷ 12
= $6,250
30% housing budget
$6,250 × 30%
= $1,875
Subtract estimated utilities
$1,875 − $150
= $1,725
Utilities reduce the remaining budget available for rent.
Total housing + debt ratio
($1,725 rent + $0 debts) ÷ $6,250
= 27.6%
How it works
The 30% rule — spending no more than 30% of gross income on housing — has been the standard US affordability benchmark since the 1981 Omnibus Budget Reconciliation Act defined 30% as the threshold above which a household is considered 'cost-burdened.' In practice, many households in high-cost cities spend more and still manage; others in lower-cost areas target 25–28% to save aggressively. The right number depends on your income, debts, savings rate and local costs.
Formulas
30% rule
Max Rent = Gross Monthly Income × 30%
With separate utilities
Net Rent Budget = Gross Monthly Income × 30% − Monthly Utilities
The 30% rule is a guideline. Actual affordability depends on your full financial picture including savings rate, local cost of living and career stability.
Frequently Asked Questions
Should the 30% be based on gross or take-home pay?
The original rule and most lenders use gross income because it's consistent and harder to manipulate. In practice, applying it to take-home income is more conservative — especially in high-tax states where the difference between gross and net is large.
What if I live in a high-cost city where 30% is impossible?
Many residents of New York, San Francisco and similar cities spend 40–50% on housing. If you're in that situation, the key is to make sure your other spending (food, transport, debt) is lean enough to still cover savings. The 50/30/20 framework (50% needs, 30% wants, 20% savings) can be more useful than a single housing rule.
Does the 30% include utilities?
Traditionally, the benchmark covers total housing costs — rent plus utilities. Toggle the 'utilities included' option to account for this correctly. Many listings quote rent without utilities, so your true housing cost is higher than the rent alone.
What if I have high student loans or car payments?
The 30% rule applies only to housing. If your total debt load (housing + other debts) exceeds 36–43% of gross income, lenders will flag this in mortgage underwriting. For renters, high debt is a budget problem: less of the 70% left after housing is available for savings and discretionary spending.