How Much Rent Can You Afford?

A common rule of thumb is to keep rent at or below 30% of your gross monthly income. On a $90,000 salary, that is about $7,500 a month in income and roughly $2,250 in rent. If you carry significant debt, use the debt-adjusted cap instead — about 40% of income minus your existing monthly payments — and choose whichever number is lower.

The 30% rule suggests spending no more than 30% of your gross (pre-tax) monthly income on rent. It is a budgeting guideline, not a law, meant to leave enough room for savings, debt, and other living costs. In high-cost markets some renters stretch to 35%, while debt-heavy households should aim closer to 25%.

Many landlords and property managers require that your gross monthly income be at least three times the rent (a 3x or roughly 33% rent-to-income ratio). They also review your debts, credit, and rental history. Showing income comfortably above the threshold and a clean payment record makes approval far more likely.

If the home price your monthly rent could finance as a mortgage is close to what you would buy anyway, owning may build equity instead of paying a landlord. The decision also depends on how long you will stay, upfront cash, and maintenance costs. This calculator shows the equivalent purchase price so you can compare the two paths directly.

Under the 30% rule, $3,000 in rent calls for about $10,000 in gross monthly income, or roughly $120,000 a year. Many landlords using a 3x-income standard would want around $9,000 a month ($108,000 a year). Existing debt payments can raise the income you need, since they reduce how much of your paycheck is free for housing.