How Much Rent Can I Afford?

Start with your take-home pay

Use your monthly income after taxes, not your salary. That's the money you actually have to cover rent, bills and everything else.

A common starting point is spending around 30% of gross income on housing. It's a rule of thumb, not a rule — in expensive cities many renters spend more, and on a tight budget less may be wiser.

Know the landlord's income requirement

Many landlords and management companies ask that your annual income be a multiple of the monthly rent — in New York City, 40x the monthly rent is a common ask. Other markets often use 2.5x–3x monthly income. Requirements vary by landlord and location.

If you don't meet the requirement, landlords may accept a guarantor or co-signer, sometimes at a higher multiple.

Add up the costs beyond rent

Rent is only part of the monthly picture. Before committing, estimate:

• Utilities (electric, gas, heat if not included, internet)
• Renter's insurance
• Laundry if not in the unit
• Commuting costs from the new location
• Pet rent or fees, if applicable

Plan your upfront cash

Moving in usually takes more than one month's rent. Expect some combination of first month's rent, a security deposit, application fees and possibly a broker fee. Limits on deposits and fees depend on your state and city — see our security deposits guide.