How the Rent Rules Work

Many landlords and budgets use a front-end rule: rent should not exceed a share of your gross (pre-tax) income—often 25% to 33%. The 30% rule is common: if you earn $5,000 per month, cap rent at $1,500. Lower percentages (25%, 28%) leave more for other expenses and savings; 33% or 40% pushes the limit.

If you have significant monthly debt (car, student loans, cards), a rent+debt rule can be safer: for example, rent plus other debt stays under 36%, 40%, or 43% of income. The calculator then sets affordable rent = (income × that %) minus your debt. That keeps your total obligations in check.

What Else to Budget For

• Utilities: Electric, gas, water, internet—often not included in rent. Ask for typical bills before signing.
• Upfront: Security deposit (often 1–2 months), application fee, first (and sometimes last) month’s rent, moving costs.
• Renter’s insurance: Covers your belongings; many landlords require it.
• Ongoing: The “after rent and debt” amount should cover groceries, transport, savings, and discretionary spending.

Ways to Spend Less on Rent

• Consider roommates—a two-bedroom split is often cheaper per person than a one-bedroom.
• Look in lower-cost areas or a bit farther from the center; compare commute and lifestyle.
• Negotiate: some landlords will lower rent, waive a fee, or offer a longer lease for a discount.
• Check if heat, water, or internet are included; that can make a higher rent effectively cheaper.

Frequently Asked Questions

What is the 30% rule for rent?

Rent should not exceed 30% of gross monthly income. Some use 25% or 28% to be more conservative, or 33% for a higher cap. Landlords often use similar ratios when screening tenants.

Should my debt affect how much rent I can afford?

Yes. Car, student, and credit card payments reduce what you can safely put toward rent. The “36%−debt”, “40%−debt”, and “43%−debt” options set rent so that rent plus other debt stays under that share of income.

Is the result before or after tax?

The calculator uses pre-tax (gross) income, matching common rules and landlord checks. For a stricter budget, use a lower percentage or enter an approximate take-home amount as your “income.”

What else should I budget for when renting?

Besides rent: utilities (if not included), internet, renter’s insurance, security deposit, application or moving costs, and day-to-day spending. The “remaining after rent and debt” is a starting point for these and savings.