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:
| City | Sample Income | Affordable Rent Range | Median Rent (1BR) | Notes |
|---|---|---|---|---|
| San Francisco, CA | $100,000 | $2,500–$3,000 | $3,019 | Median earners are nearly rent-burdened due to high housing costs. |
| Atlanta, GA | $60,000 | $1,300–$1,500 | $1,532 | More affordable than coastal cities, but prices are rising. |
| Tulsa, OK | $50,000 | $900–$1,100 | $867 | One of the most affordable midsize cities. |
| New York City, NY | $100,000 | $3,100–$3,300 | $2,367 | Renters often exceed 30% of income unless earning $130K+. |
| Miami, FL | $80,000 | $2,100–$2,300 | $1,522 | High demand and limited supply keep rents above average. |
| Dallas, TX | $70,000 | $1,600–$1,800 | $1,543 | Expected to be Texas’s most expensive metro in 2025. |
| Chicago, IL | $65,000 | $1,500–$1,600 | $1,687 | Rents rising faster than income, especially on the North Side. |
| Denver, CO | $70,000 | $1,700–$1,800 | $1,498 | Flattening rent growth, but still strained for lower incomes. |
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.
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