What the 30 percent rule means
Housing researchers commonly classify a renter household as cost-burdened when housing costs exceed 30 percent of income. For someone earning $6,000 before taxes, 30 percent is $1,800 per month.
When the rule is too loose
The rule can overstate affordability when take-home pay is low, debt payments are high, utilities are expensive, or the apartment requires a large deposit. Use the homepage calculator to compare this rule with your monthly cash flow.
When the rule is too strict
Some renters choose a higher share when they have no car payment, low debt, strong savings, or a short-term reason to live in a higher-cost location. That is a personal budget decision, not a guarantee that an application will qualify.
Use total housing cost, not only advertised rent
Census gross-rent statistics include contract rent plus average tenant-paid utility and fuel costs. To make a closer comparison, subtract required monthly fees, utilities, insurance, and parking from the 30 percent amount before treating the remainder as a base-rent limit.
Example: 30 percent of $6,000 is $1,800. If required non-rent housing costs are $275 per month, the comparable base-rent amount is $1,525, not $1,800.
Read the Census renter cost-burden definition.
What the percentage cannot see
The calculation does not know your taxes, childcare, transportation, health costs, debt, income volatility, savings goal, or move-in cash. Use it as one comparison alongside a take-home cash-flow test and the actual written fee sheet.