$
A year, for everyone who’ll pay the rent
$
A month: car, student and personal loans, card minimums
Rent you can afford
$1,500/mo
30% of your income before tax
- Comfortable (25%)
- $1,250/mo
- Stretched (35%)
- $1,750/mo
- Rent$1,500
- Tax and everything else$3,500
What this means
Spending about 30% of your income before tax on rent leaves room for bills, saving and the rest of life. Below 25% is comfortable; above 35%, money gets tight, especially with debts.
Many landlords want your yearly income before tax to be at least 40 times the rent: on your income, up to $1,500/mo.
To move in, expect to pay the first month’s rent and a security deposit, often one month’s rent (state rules vary): about $3,000 at this rent.
Rent at different shares of your income
| Share of income | Rent |
|---|---|
| 20% | $1,000/mo |
| 25% | $1,250/mo |
| 30% | $1,500/mo |
| 35% | $1,750/mo |
| 40% | $2,000/mo |
Moving in
- Rent in advance$1,500
- Deposit$1,500
- To move in$3,000
Assumptions in this estimate
- The 30% guide uses income before tax. If you have high costs such as childcare, aim lower.
- Bills, internet, insurance and moving costs come on top of the rent and deposit.