Rent-to-Income Ratio Calculator
Calculate your rent-to-income ratio and compare to recommended guidelines.
Results
Visualization
How It Works
The rent-to-income ratio measures what percentage of gross income goes to rent. HUD defines 'cost-burdened' as spending more than 30% on housing.
The Formula
Ratio = (Monthly Rent / Gross Monthly Income) * 100
Variables
- Monthly Rent — Base rent payment
- Gross Income — Total income before taxes
- Ratio — Percentage of income spent on rent
Worked Example
Rent $1,800, Income $6,000. Ratio = 30%. Right at the recommended maximum.
Practical Tips
- HUD defines 'cost-burdened' at >30% and 'severely burdened' at >50%.
- In expensive metros, many exceed 30% — focus on total financial health.
- Use net income for a more conservative ratio.
- Landlords require 3x rent (33% ratio) to approve applications.
- If ratio is too high, consider roommates or smaller units.
Frequently Asked Questions
What is a good ratio?
Below 25% is excellent, 25-30% good, 30-40% stretched, above 40% risky.
Why do landlords use the 3x rule?
It ensures tenants can pay rent (33%) and cover other expenses.
Include partner's income?
If both on the lease, yes. Combined income / total rent.
What if over 40%?
May need co-signer, higher deposit, or proof of savings.
Is the 30% rule outdated?
Debated, especially in high-cost cities, but still a useful benchmark.