The 30% rent rule
Updated on July 3, 2026 · by Rafael Rossi
The classic guideline: spend at most 30% of gross income on rent.
The math
max rent = gross income × 0.30. On $5,000/month → rent up to $1,500. In reverse: for a $2,000 rent, the recommended income is ~$6,700.
Where it comes from
The rule grew out of 1980s US housing policy: above ~30%, housing starts squeezing other essentials. Landlords still use it to screen applications (often requiring 3× the rent in income).
When to bend it
- High income: 35% can fit comfortably, since what remains still covers essentials well;
- Tight income or debts: aim for 25% or less;
- Count the package: utilities, parking and fees are part of housing cost — add everything before comparing to 30%.
Tool
Our income-commitment calculator shows your exact percentage and what's left for the rest of your budget.