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Is It Worth Renting?
Budgeting Tools

Rent Affordability Calculator

Don't be «house poor». Find out exactly what you can afford while maintaining a healthy financial life.

Your Finances

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Car loans, student loans, credit cards.

Method Used: 36% DTI Rule

We calculate based on the standard 36% Debt-to-Income rule, which ensures your total debt plus rent doesn't exceed 36% of your gross income. This is safer than the standard "30% of income" rule.

You Can Afford

$1,300/mo

Based on an income of $5,000/mo

Monthly Budget Breakdown

Gross Monthly$5,000
Taxes (Est. 25%)$1,250
Max Rent$1,300

The 3 Rules of Renting

When deciding how much rent you can afford, landlords looks at one number, but you should look at three:

1. The Landlord's Rule (40x Rule)

Most landlords require your annual income to be at least 40 times the monthly rent. This is mathematically the same as ensuring rent is no more than 30% of your gross income.

2. The 30% Rule

The standard advice: Spend no more than 30% of your gross income on housing. This is a good baseline but can be dangerous if you have high student loans or debt.

3. The 36% DTI Rule (Recommended)

This is what our calculator primarily uses. Your total Debt-to-Income (rent + car payments + loans) should not exceed 36% of your Gross Income. This ensures you aren't overleveraged.

Tip: If you live in a high-cost city (NYC, London, SF), these rules often stretch to 40-50%. If so, you must cut back on other "Wants" to compensate.