Rent Affordability Calculator

Find out how much rent you can afford based on your income and expenses

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Rent Affordability

What makes up Rent Affordability?

Rent affordability refers to how much of your income you can reasonably spend on rent without creating a financial strain. It is typically measured by the Rent-to-Income (RTI) Ratio, which compares monthly rent to gross income.

This rent affordability calculator considers these important financial factors:

  • Monthly Gross Income - Your monthly income before taxes and other deductions
  • Monthly Debt Payments - Your monthly payments for credit cards, loans, and other debt obligations
  • Monthly Savings Rate - The percentage of your monthly income saved for future goals
  • Monthly Utilities - Your estimated monthly costs for utilities not included in your rent

Understanding Rent Affordability

What is included in your payment?

Rent affordability refers to how much of your income you can reasonably spend on rent without creating a financial strain. It is typically measured by the Rent-to-Income (RTI) Ratio, which compares monthly rent to gross income.

This rent affordability calculator considers these important financial factors:

  • Monthly Gross Income - Your monthly income before taxes and other deductions
  • Monthly Debt Payments - Your monthly payments for credit cards, loans, and other debt obligations
  • Monthly Savings Rate - The percentage of your monthly income saved for future goals
  • Monthly Utilities - Your estimated monthly costs for utilities not included in your rent

Tips for Using this Calculator

For Renters:

  • Use your gross monthly income as a baseline, but also consider your net income for a more realistic picture
  • Include debt payments and other expenses such as subscriptions, insurance, groceries, and transportation to avoid overcommitting
  • Consider job stability and upcoming expenses when evaluating affordability

For Home Buyers:

  • Consider how much rent you could afford, while saving toward a down payment or purchase of a home

For Homeowners:

  • Use estimated incomes of nearby jobs to set a fair rent for your property (e.g., renting a room or ADU)
  • Evaluate the extent of your current or future income to determine if downsizing is a good financial move

For Landlords/Investors:

  • Input income data to gauge market affordability to set realistic rent prices
  • Screen tenants by assessing their rent-to-income ratio

Rent-to-Income (RTI) Ratios

Three common RTI ratios are 25%, 30% and 35%.

Conservative Approach (≤25% of gross income)

  • Allows for greater savings and handling of expenses
  • Recommended for those with high debt obligations or variable income
  • Example: Example: $5,000 monthly income → maximum monthly rent of $1,250

Recommended Standard (30% of gross income)

  • Allows for moderate savings while maintaining comfortable housing
  • Used as a guideline for landlords, property management companies, and financial institutions
  • Example: Example: $5,000 monthly income → maximum monthly rent of $1,500

Stretching Limits (35%+ of gross income)

  • May lead to financial strain, especially when combined with debt and other expenses
  • Reduces your ability to save, invest, or respond to unexpected expenses
  • May be necessary in high-cost-of-living areas (e.g. proximity to work, school, or amenities)
  • Example: $5,000 monthly income → $1,750+ monthly rent