How Much Rent Can I Afford? Tables by Hourly Wage and Salary
Most renters can afford about 30% of their gross monthly income in rent. At $20 an hour that is about $1,040 a month; on a $60,000 salary it is about $1,500. The tables below give the number for every common wage, plus the income landlords will ask to see.
"How much rent can I afford?" really has two answers. One is what your budget can carry. The other is what a landlord will approve you for. They are calculated differently, and the second one is usually the one that decides where you live. This guide gives you both.
The Three Rules Everyone Uses
Almost every rent calculator, and almost every landlord, uses one of three rules. They are closer than they look.
The 30% rule
Spend no more than 30% of your gross monthly income on rent. Gross means before taxes and deductions. This is the rule most budgeting advice starts from, and it is the benchmark federal housing programs use to define a household as "cost-burdened."
The 40x rule
Many landlords want your annual income to be at least 40 times the monthly rent. On a $1,500 apartment, that means $60,000 a year. Do the arithmetic and the 40x rule is exactly the 30% rule written a different way, so both give the same maximum.
The 3x rule
Other landlords want your monthly gross income to be at least three times the rent. That works out to rent of 33% of income, so it is slightly more generous than 30%. It is the most common screening rule for apartments outside the most expensive cities.
Quick formula: take your gross monthly income and multiply by 0.3. That is your comfortable rent ceiling under the 30% and 40x rules. Divide the same income by 3 and you have the most a 3x landlord will approve.
How Much Rent Can I Afford by Hourly Wage?
These figures assume a full-time schedule of 40 hours a week for 52 weeks, which is 2,080 hours a year. If you work fewer hours, or your hours change from week to week, use your average from the last three months of pay stubs instead.
| Hourly wage | Annual income | Monthly gross | Rent at 30% / 40x | Max at 3x |
|---|---|---|---|---|
| $15/hour | $31,200 | $2,600 | $780 | $867 |
| $16/hour | $33,280 | $2,773 | $832 | $924 |
| $17/hour | $35,360 | $2,947 | $884 | $982 |
| $18/hour | $37,440 | $3,120 | $936 | $1,040 |
| $20/hour | $41,600 | $3,467 | $1,040 | $1,156 |
| $22/hour | $45,760 | $3,813 | $1,144 | $1,271 |
| $25/hour | $52,000 | $4,333 | $1,300 | $1,444 |
| $28/hour | $58,240 | $4,853 | $1,456 | $1,618 |
| $30/hour | $62,400 | $5,200 | $1,560 | $1,733 |
| $35/hour | $72,800 | $6,067 | $1,820 | $2,022 |
| $40/hour | $83,200 | $6,933 | $2,080 | $2,311 |
| $45/hour | $93,600 | $7,800 | $2,340 | $2,600 |
| $50/hour | $104,000 | $8,667 | $2,600 | $2,889 |
So if you are asking how much rent you can afford making $18 an hour, the comfortable answer is about $936 and the landlord ceiling is about $1,040. At $25 an hour, it is about $1,300 comfortably and $1,444 at most.
How Much Rent Can I Afford by Salary?
| Annual salary | Monthly gross | Rent at 30% / 40x | Max at 3x |
|---|---|---|---|
| $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 |
| $90,000 | $7,500 | $2,250 | $2,500 |
| $100,000 | $8,333 | $2,500 | $2,778 |
| $120,000 | $10,000 | $3,000 | $3,333 |
| $150,000 | $12,500 | $3,750 | $4,167 |
On $70,000 a year you can afford about $1,750 a month by the 30% rule. Most landlords would approve you for up to about $1,944 if they use the 3x rule.
Two incomes? Most landlords add together the incomes of every adult on the lease. Two roommates each earning $45,000 qualify together for roughly $2,250 a month under the 30% rule. Before you sign together, read our guide to joint and individual leases. It explains what each person is responsible for.
When 30% Is Too Much, and When It Is Fine
The 30% rule is based on gross income, but you pay rent from take-home pay. Taxes, health insurance and retirement contributions come out first. So the same rent feels very different depending on everything else you owe.
- Aim lower than 30% if you carry a car payment, student loans or credit card balances, or if you have no emergency savings yet. Housing is the one bill you cannot pause.
- 30% is reasonable if your other debts are small and you already have two or three months of expenses saved.
- Above 30% can work in high-cost cities, or if the rent includes utilities, parking or internet you would otherwise pay separately. Compare the total cost of living there, not just the rent.
Check it against your take-home pay
A useful second test is the 50/30/20 budget. Put 50% of your take-home pay toward needs, 30% toward wants and 20% toward savings and debt. Rent, utilities, groceries, transportation and insurance all have to fit inside that first 50%. If rent alone uses most of it, the apartment is too expensive, whatever the 30% rule says.
Count the costs that are not rent
- Utilities: electricity, gas, water, trash and internet, unless the lease includes them
- Renters insurance, which many landlords require
- Parking, pet rent, amenity fees and storage
- Commuting, which can erase the savings of a cheaper apartment further out
The Money You Need Before You Move In
The monthly rent is not the number that stops most people. The upfront cost is. Before you get the keys you will usually pay some combination of:
- The first month's rent
- A security deposit, often equal to one month's rent
- An application fee for each application you submit
- Sometimes the last month's rent, a pet deposit, or a move-in fee
On a $1,400 apartment that can easily be $2,800 to $4,200 before you have paid a mover. Our guide to first and last month's rent breaks down what landlords can ask for. If the deposit is the hard part, look at security deposit alternatives.
If You Earn Less Than 3x the Rent
Falling short of a landlord's income rule does not always mean no. It means you need to make up the difference somewhere else:
- Add a cosigner or guarantor who earns enough to cover the gap. See how a cosigner for an apartment works.
- Count every income you have. Part-time work, freelance income, benefits and support payments can all count if you can document them. Our guide to proof of income for an apartment lists what landlords accept.
- Show savings. Some landlords will accept bank statements showing several months of rent in the bank instead of the income multiple.
- Offer a longer lease or a larger deposit, where your state allows it.
- Show you have always paid on time. A record of paid rent is often more persuasive than an income ratio. A Renter Score gives a landlord that record in one link.
Run your own numbers: the free rent-to-income calculator shows your ratio for any rent and income, and whether it meets the 30%, 3x and 40x tests. Enter your income before you start searching so you only look at homes you can actually get approved for.
Rent Affordability Questions
Can I afford $1,000 rent making $20 an hour?
Yes, if you work full time. $20 an hour is about $3,467 a month before taxes. $1,000 is 29% of that, just inside the 30% rule, and well within the 3x rule, which allows up to about $1,156.
Is the 30% rule based on gross or net income?
Gross income, before taxes. That is why it can feel tight. If you want a stricter test, keep rent to roughly 25% of gross, or check that rent and all your other essential costs fit within half of your take-home pay.
How much rent can I afford on $50,000 a year?
About $1,250 a month under the 30% or 40x rule, and up to about $1,389 with a landlord who uses 3x.
Do landlords count income from a second job or side work?
Usually, as long as you can prove it. Two to three months of pay stubs, bank deposits or a year of tax returns for self-employment income are the usual evidence. Cash income nobody can verify rarely counts.
What if my roommate and I earn different amounts?
Most landlords look at the combined household income, so a higher earner can carry a lower one on the application. Decide how you will split the rent before you apply. The lease rarely splits it for you.
Should I spend less than I can afford?
If you can, yes. Every $100 below your ceiling is $1,200 a year toward savings, and savings are what protect you when a paycheck is late or a job ends. The cheapest apartment you would be happy in is usually the right one.
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