Rent you can afford by hourly wage
| Hourly pay (40 h/week) | Yearly gross | Rent at 30% (same as 40x rule) | Landlord max at 3x rule |
|---|---|---|---|
| $15/hour | $31,200 | $780 | $867 |
| $18/hour | $37,440 | $936 | $1,040 |
| $20/hour | $41,600 | $1,040 | $1,156 |
| $22/hour | $45,760 | $1,144 | $1,271 |
| $25/hour | $52,000 | $1,300 | $1,444 |
| $30/hour | $62,400 | $1,560 | $1,733 |
| $35/hour | $72,800 | $1,820 | $2,022 |
| $40/hour | $83,200 | $2,080 | $2,311 |
The 30% rule
The classic guideline is to spend no more than 30% of your gross monthly income on rent. It comes from the US Department of Housing and Urban Development (HUD), which treats households paying more than 30% as cost-burdened. At $22 an hour full-time you earn about $3,813 a month before tax, so 30% is about $1,144.
The 40x rent rule landlords use
Many landlords, especially in New York and other big cities, require your yearly gross income to be at least 40 times the monthly rent. For a $1,500 apartment that’s $60,000 a year. Divide your salary by 40 to find the most they’ll usually approve. Here’s a handy fact: the 40x rule and the 30% rule give exactly the same number (30% ÷ 12 months = 1/40). Some landlords use a looser 3x rule instead: your monthly gross income must be at least 3 times the rent (monthly income ÷ 3), which allows about 11% more rent.
The 50/30/20 budget
Split your take-home pay: 50% for needs (rent, utilities, groceries, insurance, minimum debt payments), 30% for wants, and 20% for savings and extra debt payoff. If rent alone eats most of your 50%, look for a roommate, a cheaper area or ways to cut other needs.
More detail and examples: how much rent can I afford.
How Much Rent Can I Afford? FAQs
How much rent can I afford making $20 an hour?
Full-time at $20 an hour is about $41,600 a year or $3,467 a month before tax. The 30% rule (and the landlord 40x rule) gives about $1,040 a month. A landlord using the 3x rule may approve up to about $1,155.
How much rent can I afford with a $50,000 salary?
About $1,250 a month. The 30% rule and the 40x rule ($50,000 ÷ 40) give the same answer.
Is the 30% rule based on gross or net income?
Gross, before taxes. If you want to be more careful, aim for 30% of your take-home pay instead, or use the 50/30/20 split.
What income do I need for $2,000 rent?
About $80,000 a year ($2,000 × 40), or about $38.50 an hour full-time.