On a $60,000 gross annual income, the 30% rule gives a maximum rent of $1,500 a month.
| Annual income | Monthly income | 25% | 30% | 35% |
|---|---|---|---|---|
| $30,000 | $2,500 | $625 | $750 | $875 |
| $35,000 | $2,917 | $729 | $875 | $1,021 |
| $40,000 | $3,333 | $833 | $1,000 | $1,167 |
| $50,000 | $4,167 | $1,042 | $1,250 | $1,458 |
| $60,000 | $5,000 | $1,250 | $1,500 | $1,750 |
| $70,000 | $5,833 | $1,458 | $1,750 | $2,042 |
| $80,000 | $6,667 | $1,667 | $2,000 | $2,333 |
| $90,000 | $7,500 | $1,875 | $2,250 | $2,625 |
| $100,000 | $8,333 | $2,083 | $2,500 | $2,917 |
| $120,000 | $10,000 | $2,500 | $3,000 | $3,500 |
| $150,000 | $12,500 | $3,125 | $3,750 | $4,375 |
How it is computed
Affordable rent = gross monthly income × share ÷ 100, with gross monthly income = annual income ÷ 12. Debts and utilities are not deducted.
FAQ
Is the 30% rule realistic?+
It is a common guideline, and many landlords check it. In expensive cities many renters pay more; with debts or high utility costs, aim lower.
Gross or net income?+
The rule uses gross income, before tax. On take-home pay, the same rent is a larger share.