How Much Should I Spend on Rent?
Enter your gross monthly income to see the 30% limit, the landlord 3x cap, and what is left over.
Short answer: no more than 30% of gross monthly income. On $5,000 a month that is $1,500 in rent, leaving $3,500 for everything else. Landlords usually apply a stricter test — income of at least 3× the rent, which caps you at about $1,667 on the same income. Above 30% of income, U.S. housing policy calls a household cost-burdened.
The 30% threshold is the U.S. policy definition of a cost-burdened household. Figures from the calculator below.
How much rent can I afford, by income?
Gross monthly income — before tax. The last column is the cap most landlords apply when they require income of at least three times the rent.
| Monthly income | 25% (conservative) | 30% rule | 35% (stretched) | Landlord 3x cap |
|---|---|---|---|---|
| $3,000 | $750 | $900 | $1,050 | $1,000 |
| $4,000 | $1,000 | $1,200 | $1,400 | $1,333 |
| $5,000 | $1,250 | $1,500 | $1,750 | $1,667 |
| $6,000 | $1,500 | $1,800 | $2,100 | $2,000 |
| $7,500 | $1,875 | $2,250 | $2,625 | $2,500 |
| $10,000 | $2,500 | $3,000 | $3,500 | $3,333 |
Same arithmetic as the rent affordability calculator: rent = income × your chosen share; the landlord cap is income ÷ 3.
Where the 30% rule comes from
The 30% threshold comes from U.S. housing policy: households spending more than 30% of income on housing are defined as cost-burdened, and more than 50% as severely cost-burdened. It is a policy definition of strain, not a law and not a personal budget. In expensive metros many people exceed it by necessity.
Frequently asked questions
How much should I spend on rent?
The common guideline is no more than 30% of gross monthly income. On $5,000 a month that is $1,500. Landlords separately often require income of at least three times the rent, which caps rent at about $1,667 on the same income. Spending above 30% is described in U.S. housing policy as being cost-burdened.
What is the 30% rule for rent?
A guideline that housing should take no more than 30% of gross monthly income. It derives from the U.S. definition of a cost-burdened household: one spending more than 30% of income on housing. Above 50% is severely cost-burdened.
Is the 30% rule based on gross or net income?
Gross income, before taxes. That is why the rule feels tight in practice: 30% of gross can be closer to 40% of take-home pay once taxes and payroll deductions come out.
Why do landlords want you to earn 3x the rent?
It is roughly the same test stated differently. Requiring income of at least three times the rent caps rent at about 33% of gross income, which lines up with the 30% guideline.