Rent-to-Income Ratio Calculator

The rent-to-income ratio helps predict whether applicants can comfortably afford rent. The widely-accepted standard is that rent should not exceed 30% of gross monthly income.

This calculator quickly determines if prospective tenants meet your income requirements. Simply enter monthly rent and applicant's gross income to see if they qualify under the 30% guideline.

While 30% is standard, some landlords in high-cost markets accept 35-40% for higher-income tenants. Always apply criteria consistently to avoid fair housing issues.

Calculate Now

How to Use This Calculator

1 Enter the monthly rent amount
2 Enter the applicant's gross monthly income
3 Click Calculate to see the rent-to-income ratio
4 Compare to your qualification threshold (typically 30%)
5 Make consistent decisions across all applicants

Formula

Ratio = (Monthly Rent ÷ Gross Monthly Income) × 100
Target: ≤ 30%

Example Calculation

Applicant earns $5,500/month, applying for $1,500/month apartment

Inputs:

Monthly Rent: $1,500
Monthly Income: $5,500

Result:

Ratio = $1,500 ÷ $5,500 = 27.3% ✓ Passes the 30% threshold

Pro Tips

30% is the standard threshold
Apply consistently to all applicants
Higher income = more flexibility on ratio

Important Considerations

• Self-employed applicants may have variable income—request tax returns
• Roommate situations should consider combined qualifying income
• High-income applicants with excellent credit may warrant flexibility

Frequently Asked Questions

The industry standard is 30% or less of gross monthly income. Some landlords in competitive markets accept up to 35-40%, especially for high-income applicants. Require at least 3x monthly rent in gross income.

Use gross (pre-tax) income. It's simpler to verify, more standardized, and applicants are used to providing it. Gross income is listed on pay stubs, W-2s, and tax returns, making verification straightforward.

Options include: requiring a co-signer, asking for additional security deposit (where legal), accepting rent prepayment, or declining the application. Apply criteria consistently to avoid fair housing complaints.

They're equivalent. 30% rent-to-income means rent is no more than 30% of income. 3x rent rule means income must be at least 3 times rent. Both ensure the same affordability threshold—just stated differently.