Rent Affordability Calculator

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