| Gross monthly income | 25 percent rent | 30 percent rent | Annual income |
|---|---|---|---|
| $5,000 | $1,250 | $1,500 | $60K |
How to read the table
The 25 percent column leaves a larger gross-income margin. The 30 percent column shows a widely used housing-cost burden threshold. Neither column includes your utilities, debt, or required cash at move-in.
Why 25 percent can be useful
A lower rent share can leave more room for savings, transportation, groceries, insurance, and unexpected costs. It can also help if utilities are not included in rent.
Use the full calculator next
After finding a rough row, open the rent affordability calculator and enter your take-home pay, debt, utilities, roommates, and move-in fees.
Adjust the row for total housing cost
The table shows a percentage of gross income, but Census gross-rent measures include contract rent plus tenant-paid utility and fuel costs. If a row shows $1,500 at 30 percent and the unit has $250 in required utilities and fees, a closer base-rent comparison is $1,250.
Compare income changes carefully
Use regular, documentable household income that the lease applicant can reasonably expect. Overtime, bonuses, tips, freelance work, or a future raise can be volatile and may be treated differently by a property. Run one row with dependable income and a second scenario with the higher amount.
Table methodology
Every row is simple arithmetic: gross monthly income multiplied by 0.25 and 0.30, with annual income equal to monthly income multiplied by 12. The table is not built from local listing prices and does not predict approval.