How to use this calculator
- Annual income before tax. If you’re renting with a partner or roommates who’ll share the lease, combine your incomes. Landlords usually do.
- Rule of thumb. Pick the rule you want as your headline answer. The table at the bottom shows all three either way.
- Monthly debt payments. Minimum payments on car loans, student loans and credit cards.
- Take-home pay. Let the calculator estimate it from your state and filing status, using the same 2026 tax engine as our paycheck calculator, or enter it from a pay stub.
- Other essentials. Utilities, groceries, insurance, transportation and other must-pay costs. These only affect the 50/30/20 result and the leftover figure.
The result shows your maximum rent, how your take-home pay would split at that rent, and what’s left for everything else.
The three rules
30% of gross income. Federal housing policy has used a share of income to define affordability since 1969, when the Brooke Amendment capped public housing rent at 25% of income; the cap rose to 30% in 1981. Today HUD and the Census Bureau consider households that spend more than 30% of income on housing to be cost-burdened.
The 40× landlord rule. Many landlords, especially in high-cost cities, require gross annual income of at least 40 times the monthly rent. Because a year has 12 months, 40× rent works out to exactly 30% of gross income. Some landlords use 3× the monthly rent instead (36× a year), which allows about 33%.
The 50/30/20 budget. Popularized by Elizabeth Warren and Amelia Warren Tyagi in All Your Worth (2005), this rule splits take-home pay into 50% for needs, 30% for wants and 20% for savings. Rent has to share the needs half with your other essentials and minimum debt payments.
- G is gross annual income
- T is monthly take-home pay
- D is monthly debt payments and E is other monthly essentials
Worked example
A single renter in Illinois earns $75,000 a year, pays $300 a month on debts and spends about $900 a month on other essentials.
- Gross monthly income: $6,250
- 30% rule: 0.30 × $6,250 = $1,875
- 40× rule: $75,000 ÷ 40 = $1,875
- Estimated take-home pay: about $4,835 a month after federal, Social Security, Medicare and Illinois income tax
- 50/30/20 budget: 0.50 × $4,835 − $300 − $900 ≈ $1,218
At $1,875 rent, this renter would have about $1,760 a month left for wants and savings after debts and essentials, and rent would take 39% of take-home pay. At $1,218, about $2,418 would be left.
Maximum rent by income
Single filer in Illinois, with $300 of monthly debts and $900 of other essentials:
| Gross income | Take-home / month | 30% or 40× rule | 3× rent rule | 50/30/20 budget |
|---|---|---|---|---|
| $40,000 | $2,707 | $1,000 | $1,111 | $154 |
| $50,000 | $3,335 | $1,250 | $1,389 | $468 |
| $60,000 | $3,964 | $1,500 | $1,667 | $782 |
| $75,000 | $4,835 | $1,875 | $2,083 | $1,218 |
| $100,000 | $6,198 | $2,500 | $2,778 | $1,899 |
| $150,000 | $8,876 | $3,750 | $4,167 | $3,238 |
At lower incomes, fixed costs eat up most of the needs half of the budget. That’s why the 50/30/20 result falls so far below 30% of gross, and why many lower-income renters end up cost-burdened.
Your state changes the budget answer
The 30% and 40× rules use gross pay, so they’re the same everywhere. The 50/30/20 rule uses take-home pay, which depends on state income tax. At $75,000 for a single filer with the same $1,200 of debts and essentials:
| State | Take-home / month | 50/30/20 max rent |
|---|---|---|
| Texas | $5,133 | $1,366 |
| Florida | $5,133 | $1,366 |
| Pennsylvania | $4,936 | $1,268 |
| Illinois | $4,835 | $1,218 |
| California | $4,829 | $1,215 |
| New York | $4,815 | $1,208 |
| Oregon | $4,667 | $1,134 |
New York City and some other cities add a local income tax, which the estimate doesn’t include. Enter your own take-home pay for the most accurate result.
Tips for setting your rent budget
- Treat the landlord rule as a ceiling, not a target. A landlord’s approval means you meet their minimum, not that the rent fits your budget.
- Count the full monthly cost. Add renters insurance, parking, pet rent and any utilities not included.
- Plan for move-in cash. First month’s rent, a security deposit and sometimes last month’s rent or a broker fee can add up to several times the monthly rent.
- Watch your debt-to-income ratio if you’re saving to buy. Lenders look at housing plus debts as a share of gross income, so the debt-to-income ratio calculator is a good check.
- Thinking about buying? Compare costs over time with the rent vs. buy calculator, see what price you could afford with the home affordability calculator, and build a down payment fund with the savings calculator.
Assumptions and limitations
- Take-home pay is estimated with 2026 federal withholding, Social Security, Medicare and state income tax for a single paycheck with no pre-tax deductions. 401(k) contributions, health premiums and local taxes lower it further.
- The rules are guidelines. Your real budget depends on your other goals, how stable your income is, and the cost of living where you rent.
- To turn an hourly wage into an annual income, use the salary calculator.
Sources
- HUD PD&R Edge: Defining housing affordability: the 30% standard and the Brooke Amendment
- U.S. Census Bureau: Renters more likely than homeowners to spend more than 30% of income on housing
This calculator is for budgeting. Landlords set their own income requirements, so ask before you apply.
Frequently asked questions
How much rent can I afford on $75,000 a year?
The 30% rule and the common 40× landlord rule both put the ceiling at $1,875 a month. A 50/30/20 budget is stricter once you count other costs. For a single filer in Illinois with $300 of debt payments and $900 of other essentials, it suggests about $1,218.
What is the 40× rent rule?
Many landlords require your gross annual income to be at least 40 times the monthly rent. For a $2,000 apartment, that's $80,000 a year. Because 12 ÷ 40 is 0.30, it works out to exactly the 30% rule, just applied from the landlord's side.
What is the 3× rent rule?
Some landlords ask for gross monthly income of at least three times the rent, which is the same as 36 times the rent per year. It's slightly looser than the 40× rule, allowing rent up to about 33% of gross income. Set the income multiple to 36 in the calculator to use it.
Is the 30% rule based on gross or take-home pay?
Gross pay, before taxes. It comes from federal housing policy, where households paying more than 30% of income for housing are considered cost-burdened. Since taxes take a bigger bite in some states than others, 30% of gross can feel very different depending on where you live.
How does the 50/30/20 rule apply to rent?
It splits your take-home pay into 50% for needs, 30% for wants and 20% for savings and extra debt payments. Rent is a need, so it has to fit in the 50% along with minimum debt payments, utilities, groceries, insurance and transportation. That makes it the most conservative of the three rules for most people.
Should utilities count toward my rent budget?
If utilities are included in the rent, compare the full rent to your budget. If you pay them separately, include them in Other essentials so the 50/30/20 result accounts for them. Federal measures of housing cost burden count utilities as part of housing costs.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.