Rent you can afford by hourly wage
| Hourly pay | Yearly (40 h/week) | Monthly gross | Rent at 30% / 40x | Landlord max at 3x rule |
|---|---|---|---|---|
| $12 | $24,960 | $2,080 | $624 | $693 |
| $15 | $31,200 | $2,600 | $780 | $867 |
| $17 | $35,360 | $2,947 | $884 | $982 |
| $18 | $37,440 | $3,120 | $936 | $1,040 |
| $20 | $41,600 | $3,467 | $1,040 | $1,156 |
| $22 | $45,760 | $3,813 | $1,144 | $1,271 |
| $25 | $52,000 | $4,333 | $1,300 | $1,444 |
| $28 | $58,240 | $4,853 | $1,456 | $1,618 |
| $30 | $62,400 | $5,200 | $1,560 | $1,733 |
| $35 | $72,800 | $6,067 | $1,820 | $2,022 |
| $40 | $83,200 | $6,933 | $2,080 | $2,311 |
| $50 | $104,000 | $8,667 | $2,600 | $2,889 |
Rent you can afford by salary
| Salary | Monthly gross | Rent at 30% / 40x | Landlord max at 3x rule |
|---|---|---|---|
| $30,000 | $2,500 | $750 | $833 |
| $40,000 | $3,333 | $1,000 | $1,111 |
| $50,000 | $4,167 | $1,250 | $1,389 |
| $60,000 | $5,000 | $1,500 | $1,667 |
| $70,000 | $5,833 | $1,750 | $1,944 |
| $80,000 | $6,667 | $2,000 | $2,222 |
| $100,000 | $8,333 | $2,500 | $2,778 |
| $120,000 | $10,000 | $3,000 | $3,333 |
| $150,000 | $12,500 | $3,750 | $4,167 |
The 3 rent rules explained
- The 30% rule. Keep rent at or below 30% of gross income. The US Department of Housing and Urban Development (HUD) calls households that pay more than 30% “cost-burdened”.
- The 40x rule. Many landlords and management companies require yearly gross income of at least 40 times the monthly rent. $1,500 rent needs $60,000 a year. It’s exactly the same number as the 30% rule.
- The 3x rule. Your monthly gross income should be at least 3 times the rent. That allows about 33% of income, so it’s slightly looser.
If you don’t meet a landlord’s requirement, they may accept a co-signer or guarantor (who often needs 80x the rent), a bigger deposit, or proof of savings.
Check your full budget, not just rent
Use the 50/30/20 budget on your take-home pay: 50% for needs (rent, utilities, groceries, insurance, transport, minimum debt payments), 30% for wants and 20% for savings. If rent plus utilities takes more than about 35–40% of your take-home pay, the rest of the budget gets tight.
| Other monthly costs to plan for | Typical range |
|---|---|
| Electricity, gas, water | $100–$250 |
| Internet | $50–$80 |
| Renter’s insurance | $15–$25 |
| Parking (cities) | $0–$250 |
| Move-in: deposit + first month + fees | 2–3× monthly rent |
If rent is too high where you live
- Get a roommate: two people splitting a $1,800 two-bedroom pay $900 each.
- Look one neighborhood further out and compare the extra commute cost with our gas cost calculator.
- Negotiate: offer a longer lease or an on-time payment history in exchange for a lower rent.
- Pay off high-interest debt to free up monthly cash (see the debt payoff calculator).
Questions
How much rent can I afford making $25 an hour?
Full-time, $25 an hour is $52,000 a year or about $4,333 a month before tax. By the 30% rule (and the 40x rule) that’s about $1,300 a month. A landlord using the 3x rule may approve up to about $1,444.
How much rent can I afford making $18 an hour?
About $936 a month by the 30% rule ($37,440 a year ÷ 40). The 3x rule allows up to about $1,040.
What salary do I need for $1,500 rent?
About $60,000 a year by the 40x rule, or $54,000 by the 3x rule.
Is 40% of income on rent too much?
It’s common in expensive cities, but it leaves little for savings and emergencies. If you go above 30%, keep other costs low and avoid new debt.