Take-home estimate uses a flat 22% effective federal+FICA rate. Your actual number depends on state tax, 401(k), and benefit deductions — check a recent pay stub for the real figure. Nothing on this page is uploaded.
Where the 30% rule actually came from
The 30% number isn't a financial-planner invention. It's a legacy of the 1981 Brooke Amendment to US housing law, which capped public housing rent at 30% of a tenant's adjusted income. HUD then adopted "30% of income on housing" as the dividing line between affordable and "cost-burdened" — and the rule of thumb leaked out into mainstream personal finance as "spend no more than 30% on rent."
It's a useful starting line, but it's a 1981 starting line in a 2026 housing market. Use the calculator's four numbers as a range, not a single answer.
The four numbers explained
1. The classic 30% rule
30% of gross (pre-tax) monthly income. This is the number most listicles cite. It's the easiest to compute and the easiest to overshoot, because gross isn't what hits your account.
2. The landlord ceiling (3× rent)
Most US landlords require your gross monthly income to be at least 3 times the rent — equivalent to about 33% of gross going to rent. This is the maximum a property manager will rent to you, which is very different from the maximum you should pay. Treat it as a hard cap, not a target.
3. The conservative target (30% of net)
30% of your take-home pay. This is the number that actually leaves you room to eat, save, and pay down debt. For most US earners it lands roughly 20-25% below the gross-based number, and that gap is exactly where the "rent-poor" trap lives.
4. The 50/30/20 headroom
50% of your net income minus your existing monthly debt payments. This shows how much of your "needs" budget is left for rent after car loans, student loans, and credit card minimums are accounted for. If this number is lower than the others, the others are lying to you. Run the full 50/30/20 calculator for a complete picture.
What rent-to-income ratio is "safe"?
- Under 25%: comfortable. You have room for savings, debt payoff, and the occasional emergency.
- 25-30%: the sweet spot the original rule was designed for.
- 30-40%: cost-burdened by HUD's definition. Workable in HCOL metros but every other category has to flex.
- Over 40%: severely cost-burdened. Almost any unexpected bill becomes credit card debt.
If your number is over 30%
You're not alone — almost half of US renters spend more than 30% of income on housing, and in coastal metros it's a clear majority. Three things actually move the number:
- Find the leak in needs first. Run the 50/30/20 calculator and see whether anything else in the needs bucket is bloated. Often the rent-to-income number is fine but the insurance, transport, or grocery bill is the real problem.
- Cut a wants line that's secretly a need. Subscriptions, dining out, the second car. Our 30-minute subscription audit usually finds $40-90/month with no lifestyle impact.
- Renegotiate at renewal. If you've been a clean tenant, ask for a flat renewal instead of the bumped rate. Landlords lose more on a 30-day vacancy than on a $50/month freeze. Our retention-call playbook works for rent too.
Frequently asked questions
How much rent can I afford on $40k?
$40,000 gross is about $3,333/month. The 30% rule gives $1,000/month. The conservative 30%-of-net version is closer to $780/month. Landlords will approve up to $1,100. The honest target on $40k is somewhere between $780 and $1,000 depending on your other debts.
How much rent can I afford on $50k?
$50,000 gross is $4,166/month. 30% rule = $1,250. Conservative target = $975. Landlord ceiling = $1,375.
How much rent can I afford on $80k?
$80,000 gross is $6,666/month. 30% rule = $2,000. Conservative = $1,560. Landlord ceiling = $2,200.
Is the 30% rule the same in Canada or the UK?
The 30% threshold is roughly universal because HUD's framework was widely copied, but the underlying tax rates differ. This calculator uses a US-flat 22% effective rate for the take-home estimate; if you're outside the US, replace the take-home line with your real number.
Does the calculator save my data?
No. Everything runs in your browser. Close the tab and the numbers are gone. There's no account, no email capture, no analytics on the inputs.