What is the 30% rent rule?

The 30% rule suggests spending no more than 30% of your gross (pre-tax) monthly income on housing -- a guideline that originated with the U.S. Department of Housing and Urban Development (HUD). Because take-home pay is what actually lands in your account, this calculator lets you apply the percentage to take-home for a more conservative number. Either way it's a starting point: your ideal number depends on your other expenses and savings goals.

Should I include utilities in my rent budget?

Yes -- your total housing cost includes rent plus utilities (electricity, water, gas, internet). When budgeting, add estimated utilities to the rent price to see the true cost. Ask the landlord or previous tenant about typical utility costs before signing.

Can I afford to live alone or should I get roommates?

If rent for a solo apartment exceeds 30% of your income, roommates are a smart financial move. Splitting a two-bedroom often saves 25-40% compared to a studio or one-bedroom. Run both scenarios through the calculator to see the actual difference.

For educational purposes only — not financial advice. Learn about our editorial process

C.14 · Housing

How much rent fits your income — without crowding the rest out.

The 30% rule is a maximum, not a goal — aim lower if you can. We solve for what leaves room for savings, debt payments, and a life.

Rule of thumb

30% of pre-tax pay

U.S. housing-agency (HUD) guideline

Inputs

Monthly take-home pay (after taxes)

$5,500

Max share of pay for rentAs a % of take-home pay; 25-30% is typical

28.00%

UtilitiesElectric, internet, water

$200

Other monthly billsSubscriptions, gym, phone — these lower how much is left for rent

$300

Rent you can afford · monthly

$1,040/mo

Where each dollar of take-home goes

Rent 19%Bills 9%Left over 72%

Monthly allocation

Every dollar of your take-home, by where it goes

Rent$1,04019%

Utilities$2004%

Other bills$3005%

Money left over · for savings & life$3,96072%

Total housing cost$1,540 · 28% of take-home

How we compute this

Rent math, fully loaded.

Max rent = monthly take-home × max%. But rent is rarely the whole housing cost — utilities + renters insurance + parking add up. Subtract them first, then apply the rule.

Suggested rent = (monthly take-home × max rent %) − utilities − other bills

HUD (the U.S. housing agency) calls a household "cost burdened" — stretched too thin — when housing costs (rent plus utilities) top 30% of pre-tax income. Financially, 25-28% of take-home is a more honest target. Markets vary wildly — in San Francisco or Manhattan, 40% is common. In Cleveland or Indianapolis, 20% is achievable.

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Answers

Frequently asked questions

A common guideline is to spend no more than 28-30% of your income on rent. The classic rule uses gross (pre-tax) income, but this calculator applies your percentage to take-home (after-tax) pay for a more honest target. If your take-home is about $4,500/mo, that's roughly $1,260-$1,350. In expensive cities some people stretch to 35%, but that leaves less room for savings and emergencies.

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How much rent fits your income — without crowding the rest out.

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How much rent fits your income — without crowding the rest out.

Rent math, fully loaded.

Continue the decision

How much rent fits your income — without crowding the rest out.

Rent math, fully loaded.

Continue the decision

Make it a habit.

Protect your rental

Lemonade Renters Insurance

State Farm Renters Insurance

Allstate Renters Insurance

Frequently asked questions

How much of my income should go to rent?

What is the 30% rent rule?

Should I include utilities in my rent budget?

Can I afford to live alone or should I get roommates?

City-specific rent calculators

Austin

Charlotte

Chicago

Columbus

Dallas

Denver

Fort Worth

Houston

Indianapolis

Jacksonville

Las Vegas

Los Angeles

Memphis

Miami

Nashville

New York City

Oklahoma City

Philadelphia

Phoenix

Portland

San Antonio

San Diego

San Francisco

San Jose

Seattle

How much rent fits your income — without crowding the rest out.

Rent math, fully loaded.

Continue the decision