How much of your income should go to rent?
The common rule is no more than about 30% of gross monthly income on rent: on $5,000 a month that is $1,500. HUD counts households above 30% as cost burdened and above 50% as severely cost burdened.
Where does the 30% rule come from?
The common answer is no more than 30% of your gross monthly income. That figure is a government affordability measure. A U.S. Department of Housing and Urban Development (HUD) research report puts it this way:
"The so-called '30 percent rule' is a standard threshold level of housing cost burden that can be traced to the Brooke Amendment to the 1968 Housing and Community Development Act." ... "The 50-percent threshold corresponds to HUD's definition of severe cost burden in its Worst Case Housing Needs reports."
Source: HUD Office of Policy Development and Research, Rent Burden in the Housing Choice Voucher Program (October 2017), read October 31, 2026. In plain terms, a household paying more than 30% of income for housing is counted as cost burdened, and one paying more than 50% as severely cost burdened. Housing cost usually includes utilities as well as rent.
Does the 30% rule still fit?
It is a yardstick, not a budget. The 30% line was built to count how many households are stretched, so it ignores what you earn, where you live and what else you pay for. A Congressional Research Service report, Housing Cost Burdens in 2024: In Brief (read October 31, 2026), notes that the standard "fails to account for intentional decisions on the part of a household", such as paying more to live near work. On a high income, 30% can leave plenty over. On a low one, it can leave too little.
Landlords use a different test. Many landlords ask for gross income of 2.5 to 3 times the rent. Three times the rent means rent is about 33% of income, and 2.5 times means 40%, so the screen is looser than the 30% line.
Should you use gross or take-home pay?
The 30% rule is usually stated against gross pay, the amount before tax and deductions, and many landlords ask about it too. That is the figure on an offer letter or a pay stub's first line, and it is what this page's calculator expects. Your own budget runs on take-home pay, which is lower once income tax, payroll tax, retirement contributions and health premiums come out. If you want a stricter check, run the same rent against your take-home pay. A rent that is 30% of gross pay will be a noticeably larger share of what actually reaches your account each month, so leave room for that.
What should rent be on a $60,000 salary?
On a $60,000 salary, 30% of gross income is $1,500 a month and 25% is $1,250. The table divides each annual salary by 12, then multiplies by 0.30 and 0.25. The 25% column is there for anyone who wants room for savings or debt payments.
| Annual gross | Monthly | Rent at 30% | Rent at 25% |
|---|---|---|---|
| $40,000 | $3,333 | $1,000 | $833 |
| $60,000 | $5,000 | $1,500 | $1,250 |
| $80,000 | $6,667 | $2,000 | $1,667 |
| $100,000 | $8,333 | $2,500 | $2,083 |
| $150,000 | $12,500 | $3,750 | $3,125 |
These are gross figures, before tax. To use your own number, enter it in the calculator at the top of the page.
What if rent nearby costs more than 30%?
First, check what similar homes actually ask. Average rent by city shows typical asking rents by bedroom count, so you can see whether the 30% figure is realistic where you are looking. Is rent going down? covers whether prices in your area are moving. Second, remember that the asking price is a starting point. Listings that have sat on the market for weeks are often the ones where a landlord will move, because an empty unit earns nothing. How to negotiate rent walks through making a written offer. Other options are a roommate, a smaller unit, or a longer lease in exchange for a lower rent.
How do you check one listing?
Paste the listing link into Lowball's listing check. It works on a phone and shows our estimate of a fair rent for that home, the comparable listings behind it, and an opening offer you could make. If the fair rent is close to your 30% number, you have a concrete figure to ask for. If you browse rentals on a computer, the free browser extension shows the same estimate on each Zillow rental as you look.
Refreshed 2026-10-31. Every figure on this page is either arithmetic shown in full or quoted from the sources linked above. This is general information, not financial advice.