Rent affordability
The 30% rule and what it means for your salary
Housing experts and the Department of Housing and Urban Development (HUD) define "affordable" housing as costing no more than 30% of gross household income. Landlords enforce this through the "3x rent" rule: your monthly gross income must be at least three times the rent.
| Monthly rent | Annual gross needed | Hourly rate (40 hrs) | After-tax monthly* |
|---|---|---|---|
| $1,000 | $40,000 | $19.23 | ~$2,843 |
| $1,500 | $60,000 | $28.85 | ~$4,091 |
| $2,000 | $80,000 | $38.46 | ~$5,197 |
| $2,500 | $100,000 | $48.08 | ~$6,231 |
*Single filer, federal tax + FICA only, no state tax, no pre-tax deductions. 2026 brackets.
Gross vs. net: which matters more?
Landlords use gross income for qualification, but your budget runs on net income. At $60,000 gross (single), your take-home is roughly $49,100 after federal tax and FICA. That means $1,500 rent is about 37% of your take-home — above the 30% threshold when measured against net income. If you want rent to be 30% of take-home, you need a higher gross salary or lower rent.
Questions
Salary needed for rent FAQ
How much income do I need for rent?
The standard guideline is to spend no more than 30% of your gross monthly income on rent. To afford $1,500 per month rent, you need a gross salary of at least $60,000 per year ($5,000 per month). This calculator shows both the gross salary needed and the after-tax income required.
What is the 30% rule for rent?
The 30% rule says your housing cost should not exceed 30% of your gross income. Originally a HUD guideline for affordable housing, it is widely used by landlords, property managers and lenders to evaluate whether a tenant can afford a unit. Spending above 30% is considered cost-burdened.
Should I base affordability on gross or net income?
Most landlords and property managers use gross income for qualification (the 3x rent rule). But for your personal budget, net income (take-home pay) is more realistic because that is the money actually available to spend. This calculator shows both perspectives.
What is the 3x rent rule?
Many landlords require your gross monthly income to be at least three times the monthly rent. This is effectively the same as the 30% rule expressed differently. For $1,800 rent, you need $5,400 per month gross, or $64,800 per year.
What if I cannot afford 30% of income on rent?
Consider roommates to split costs, look at less expensive neighborhoods, negotiate rent, or reduce other expenses to free up budget. Some financial planners suggest the 50/30/20 budget where 50% of after-tax income covers all needs (housing, food, insurance), giving housing a flexible target within that 50%.
Does the 30% rule include utilities?
Traditionally, the 30% guideline covers rent only, not utilities. If you include utilities, you may want to target 25% for rent alone to leave room for electric, gas, water and internet. This calculator uses rent-only for the 30% calculation.
- Sources: HUD 30% affordability guideline · IRS Rev. Proc. 2025-32 (2026 brackets) · SSA 2026 wage base ($184,500).
- 🔄 Last updated July 2026 · Tax year 2026
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