What’s the 30% Rule in Renting?

If you are new to renting, you might be wondering, “how much should I spend on rent?” There are many factors that go into finding a new apartment that you love, but the monthly housing cost is a leading factor in finding the right place for you. Before starting your apartment search, there are a few ways you can determine how much rent you can afford.

What Is the 30% Rule?

The 30% rule recommends that renters cap their monthly housing costs at 30% of their gross income. It's a simple rule of thumb that’s easy to calculate and widely used. Renters and landlords both use it as a benchmark to determine apartment affordability.

Despite how convenient it is, the 30% rule doesn't always reflect real-life nuance. Renters in cities like New York or San Francisco often struggle to stay within 30% of their income, even while earning six-figure salaries. Renters with lower incomes might find 30% is already too much when student loan debt, childcare, or healthcare costs are also factored in.

Trying to Calculate How Much Rent You Can Afford?

You can calculate how much rent can you afford by starting with your gross monthly income. This figure is how much you earn before taxes. Multiply it by 0.3. Next, drill down into your ongoing, real-life expenses.

• Subtract your non-negotiable bills, including student loans, car payments, and savings goals.
• Add recurring costs like transportation, groceries, and subscriptions.
• Factor in housing extras including utilities, internet, parking, renter’s insurance, and pet expenses.

Test your numbers against a rent affordability calculator for a quick gut check.

What Rent Affordability Calculators Miss

Keep in mind that online calculators are ideal for quick estimates to get you started on your budget, but they don’t know your complete financial picture. Most tools won’t:

• Factor in existing debt or credit card balances.
• Adjust for fluctuating income.
• Account for savings goals or unexpected costs.
• Consider unusual circumstances, such as supporting a family member.

Calculators are helpful, but not a tool you should rely on exclusively.

When the 30% Rule Isn’t Perfect

The 30% rule is a helpful reference point for keeping your budget in check, but it doesn’t tell the full story. It overlooks hidden costs like renters insurance, utility fluctuations, and unexpected maintenance, which can significantly impact your monthly expenses. It also doesn’t account for location. What $2,000 gets you in Omaha is vastly different from what it gets you in Los Angeles.

Income levels matter, too. A lower-income household may need to stay well below the 30% threshold, while higher earners probably have more flexibility. The rule also assumes financial stability, which doesn’t always apply to freelancers or hourly workers who may need a larger buffer. In some cases, breaking the 30% rule can make sense as long as you’re managing your overall budget wisely.

Don’t Forget Your Emergency Fund

Rent affordability isn’t just about what you can afford right now, it’s also about protecting your future. If your rent makes it unable to build or maintain an emergency fund, you may be more vulnerable to unexpected expenses like medical bills, car repairs, or job loss.

A good rule of thumb is to keep three to six months’ worth of living expenses saved up. If your current rent eats into that safety net or prevents you from saving at all, it’s time to reassess.

Rent Affordability by City

Rent affordability also depends heavily on where you live. Here’s how typical income-to-rent ratios look in major metros:

Rent-Friendly Cities in 2025

There’s good news for renters who work remotely or have the flexibility to move. Some cities still offer solid rent-to-income ratios:

• Buffalo, NY: $55,000 income = $1,200–$1,300 range; rents remain manageable, especially in older neighborhoods.
• Oklahoma City, OK: $50,000 income = $1,000–$1,100 range, one of the best affordability ratios of any major metro in early 2025.
• St. Louis, MO: $55,000 income = $1,100–$1,300 range, Strong value city with moderate rent growth and good rental inventory.

Just because you can afford it on paper doesn’t mean it’s right for you

How Do You Make Rent More Affordable?

If you’re trying to keep your budget within the 30% guideline, there are smart, practical ways to cut your monthly costs:

• Get a roommate: Or try co-living to split housing costs and reduce rent.
• Broaden your search area: Nearby zip codes may offer more affordable options.
• Sign during slow rental seasons: Rents are often cheaper in winter or off-peak months.
• Negotiate move-in specials: Ask about credits or deals that can lower upfront costs. \ Choose a longer lease: Landlords may offer a lower monthly rate for extended terms.
• Ask for a better renewal rate: You might get a discount by committing to a longer lease.
• Downsize your space: A smaller unit or fewer amenities can significantly cut rent.
• Compare local rent prices: See what others are paying in your building or zip code to avoid overpaying.
• Bundle utilities into rent: This could simplify your budget and potentially save you money.
• Trade services for rent reduction: Some landlords lower rent if you help with upkeep.
• Rent out your space: If allowed, sublet a room or your unit while you travel to offset costs.
• Look for utilities included in rent: These apartments may offer better value and price stability.
• Pick stable pricing options: Choose apartments or lease terms known for consistent pricing.
• Track your spending: Knowing where your money goes helps make rent more manageable.
• Weatherproof your home: Insulating windows and doors can lower heating and cooling bills.

Stretching your budget too far can also cause an emotional toll. Your stress level is important, so make sure you can still function while lowering your rent burden.

Final Thoughts on Rent Affordability in 2025

There’s no universal rent formula that’s right for everyone to figure out “how much should I spend on rent?” The right budget is one that supports your lifestyle, your financial goals, and your peace of mind. Use the 30% rule as a benchmark and work through your monthly expenses to figure out the right rent for you.

If it’s time to make a move, we can help you find the apartment that fits your budget and lifestyle. Take our quiz and save 50 hours of hunting in just minutes.

FAQs: Rent Affordability in 2025

How much should I spend on rent?

Most experts recommend spending no more than 30% of your gross monthly income on rent, but this depends on your debt, savings goals, and location.

What is considered rent-burdened?

If you spend more than 30% of your income on rent, you’re considered rent-burdened. More than 50% is considered severely rent-burdened.

Is the 30% rule outdated?

For some renters, yes, especially in high-cost cities. It’s still a helpful benchmark but may need to be adjusted based on your income and expenses.

Can I negotiate my rent?

Sometimes. Try negotiating during winter months or in slower markets. You can also ask for discounts, waived fees, or move-in specials.

How much rent can I afford on $60,000 a year?

Following the 30% rule, around $1,500 per month. But that amount should be adjusted based on debt, location, and lifestyle.

Can I spend more on rent if I have no debt?

Possibly. If you’re debt-free and have a stable income, you might safely spend more on housing. It’s still smart to prioritize savings.

What if my ideal apartment costs more than I can afford?

Try negotiating, getting a roommate, or looking in nearby neighborhoods. Don’t compromise financial security for amenities you can’t sustain.

How do I budget for rent with student loans or credit card debt?

Rent affordability should account for all your recurring obligations. If you're paying off loans or carrying credit card balances, it's wise to keep your rent closer to 25% of your income to maintain breathing room.

What’s the 50 30 20 budget rule and how does rent fit into it?

This budgeting rule recommends using 50% of your income for needs (including rent), 30% for wants, and 20% for savings and debt repayment. It can help you find balance beyond just rent costs.

Should I include utilities and parking in my rent budget?

Yes. Your “true rent” includes everything you pay to live in the unit, including utilities, parking, trash, pet rent, and fees. Always compare the total monthly cost, not just the base rent.

Is the rent-to-income ratio the only thing that matters?

Not necessarily. High earners might spend more than 30% without stress, while others with childcare costs, medical bills, or irregular income may need to stay well under that threshold.

What if my rent is more than 30% of my income? Should I move?

Not always. If you have job security, no debt, and a strong emergency fund, you might be able to afford a higher rent safely. But track your savings rate. If you're falling behind, it may be time to reconsider.

How does rent control or stabilization affect what I can afford?

In rent-controlled areas, you might be able to stay in a unit that would otherwise be unaffordable. However, new leases may reset to market rates, so always check local laws and timing.

Can I afford rent if I’m paid hourly or work freelance?

If your income varies, use a conservative estimate based on your lowest-earning months. Build in a cushion so you're never scrambling to make rent during slow periods.

Is it worth spending more on rent to live closer to work or transit?

Maybe. Consider the total cost of living, including commuting time, car expenses, and stress. Sometimes paying more for a better location saves money elsewhere and improves quality of life.

Can I get evicted for missing rent due to financial hardship?

Whether or not you can get evicted for financial hardship depends on your lease terms and state laws. In most cases, missing rent payments without communicating with your landlord could lead to an eviction. Some areas offer tenant protections or grace periods, so check your local housing authority.

How often does rent typically increase?

Most landlords are prone to raising rents once per lease term, which usually happens at your renewal. Typical increases range from 3% to 5%, but it varies by location and market demand. In rent-controlled areas, increases may be capped.

What is a rent-to-income ratio, and why does it matter?

The rent-to-income ratio compares your monthly rent to your gross income. Landlords often use it to assess affordability. Many prefer applicants whose rent is no more than 30% to 35% of their income.

Do landlords check employment or ask for pay stubs?

Yes, many landlords request proof of income, such as pay stubs, offer letters, or bank statements. Some may also verify employment directly.

Can I rent an apartment if I’m self-employed?

Absolutely. You may need to show two years worth of tax returns, bank statements, or client invoices to verify income. Having a co-signer or strong credit can help.

Should You Include Utilities in Your Budget?

Yes, rent is only part of your total housing costs. Utilities, parking, amenity fees, and other recurring expenses can add up quickly, so it’s smart to budget for the full picture. Aim to keep all housing costs within 35% to 40% of your net income.

Gross vs. Net Income: What Should You Use?

Most rent calculators use your gross income, but that doesn’t always reflect what you actually take home. Basing your rent on net income—what’s left after taxes and deductions—can give you a more realistic view, especially if you’re managing debt or supporting a family.

What If My Rent Is More Than 30% of My Income?

Spending more than 30% on rent isn’t always a red flag. If you’re debt-free, earning steadily, and saving consistently, it might work for you. But if high rent is straining your budget, affecting essentials, or limiting your savings, it’s time to reassess.

What are the Red Flags You’re Paying Too Much in Rent?

• It could be time to reevaluate your current rent if:
• You’re spending more than 30% of your income on rent.
• Your rent increased significantly at renewal without added value.
• You're paying premium prices but missing basic amenities (laundry, A/C, secure entry).
• Similar units in your building or neighborhood cost less.
• You have roommates but still feel financially strapped.
• Nearby areas offer more space or perks for the same price.
• Your building is poorly maintained or management is unresponsive.
• Rent leaves you with little to no room for savings or other essentials.
• Your neighborhood is declining or getting noisier with construction.
• You’re paying for amenities you rarely or never use.
• Your rent doesn’t include utilities or any additional services.
• You want to move but feel financially trapped in your current lease.