The most common guideline for renters is the 30% rule: spend no more than 30% of your gross (pre-tax) monthly income on rent.
What 30% looks like at different incomes
| Annual gross income | Monthly income | Max rent at 30% |
|---|---|---|
| $50,000 | $4,167 | $1,250 |
| $75,000 | $6,250 | $1,875 |
| $100,000 | $8,333 | $2,500 |
| $150,000 | $12,500 | $3,750 |
Why many landlords use a similar test
Many landlords ask that your income be around three times the monthly rent — effectively the same 30% guideline. Have recent pay slips or tax documents ready when you apply.
Costs beyond rent
- Utilities — electricity, gas, water, internet.
- Renters insurance — usually inexpensive and sometimes required.
- Security deposit and fees — application fees and often a deposit due up front.
- Parking, pets and amenities — these can add monthly charges.
When 30% is too much — or too little
If you carry student loans or other debt, aim below 30%. If you have no debt and live somewhere expensive, going slightly above may be workable — but leave room for savings.
Renting now, buying later?
If you plan to buy eventually, compare your rent with a mortgage payment in our mortgage calculator and read our home buying checklist.
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