Rent-to-Income Ratio Calculator
Check rent against gross income using both standards that matter — the 30% affordability guideline and the 3×-income screen most landlords apply. They don’t always agree.
Rent as a share of gross income
28.6%
Within guidelines$2,000.00 rent against $7,000.00/month gross income — income covers the annual rent 3.50×
Rent falls within both the 30% guideline and the 3x-income screen most landlords apply.
30% guideline
PassesRent is 28.6% of gross income. HUD treats anything above 30% as cost burdened.
Max rent at 30%: $2,100.00
3× income screen
PassesIncome covers annual rent 3.50×. Most landlords require at least 3×.
Income needed for 3×: $72,000.00/yr
Rent for the unit, before utilities or add-on fees.
Pre-tax income. Both standard rules are based on gross, not take-home, pay.
Optional — car loans, student loans, credit-card minimums. Used for the combined burden figure below.
Breakdown
Before taxes, utilities, and other debts.
Work backwards
$6,000.00/month gross
Screening notice. This is an affordability ratio, not an approve/deny decision. Fair-housing law requires income criteria be applied consistently to every applicant, and some states and cities restrict income-ratio screening or require that housing vouchers and other subsidies count as income. Check your local rules before using a ratio as a cutoff.
The two rules, and why they disagree
The 30% guideline says rent shouldn’t exceed 30% of gross monthly income. It comes from federal housing policy — HUD defines a household paying more than 30% as “cost burdened,” and more than 50% as “severely cost burdened.” It is the standard cited in affordability research and news coverage.
The 3× income screen says gross annual income should be at least three times the annual rent. This is the rule landlords actually apply on applications, because it’s easy to verify against a pay stub or offer letter. Here’s the catch: 3× income implies rent can reach 33.3% of gross income, so it is marginally looser than the 30% rule. An applicant at 32% clears the landlord’s screen while still being cost burdened by HUD’s definition. The calculator reports both independently rather than hiding that gap behind a single verdict.
Gross income, not take-home
Both rules use gross, pre-tax income. That’s the practical choice — it’s what appears on the documents a landlord can verify — but it makes the ratio look friendlier than the household’s actual cash flow. Depending on tax bracket and withholding, 30% of gross is commonly 38–40% of net pay. If you’re a renter using this to budget rather than to pass a screen, run the numbers against your take-home pay as well and see whether the answer still works.
Screening applicants lawfully
An income ratio is a legitimate, objective screening criterion — but only if you apply it the same way to every applicant. Inconsistent application of an otherwise neutral rule is one of the most common ways landlords create fair-housing exposure without intending to.
Local law increasingly constrains the practice, too. Many states and cities prohibit refusing to count housing vouchers, Section 8, or other subsidies as income; some cap the income multiple you may require; and some require that a voucher holder be screened only against their own share of the rent rather than the full contract rent. Write your criteria down, apply them uniformly, and confirm them against current state and local rules before you use a number as a cutoff.
Frequently asked questions
Educational tool only. This produces an affordability ratio, not an approve or deny recommendation. Fair-housing and source-of-income laws vary by state and city — consult current local rules and, where appropriate, counsel before setting screening criteria. Not legal advice.