Short answer
A common guideline is to spend no more than 30% of your gross (pre-tax) income on rent. On a $60,000 salary that is $5,000 a month gross, so about $1,500 a month. Many landlords turn the same idea into a hard cut-off, the "40x rule": your annual income must be at least 40 times the monthly rent.
1. Maximum rent by salary
| Annual income | Gross monthly | Rent at 25% | Rent at 30% |
|---|---|---|---|
| $40,000 | $3,333 | $833 | $1,000 |
| $50,000 | $4,167 | $1,042 | $1,250 |
| $60,000 | $5,000 | $1,250 | $1,500 |
| $75,000 | $6,250 | $1,562 | $1,875 |
| $100,000 | $8,333 | $2,083 | $2,500 |
The 25% column is a more conservative target, useful if you carry student loans, a car payment or credit card debt. The 30% column also equals the 40x rule: $60,000 ÷ 40 = $1,500.
2. Worked example
- 1Gross income of $6,200 a month with a 30% target: $6,200 × 0.30 = $1,860 a month, about $22,320 a year.
- 2With a more cautious 25% target: $6,200 × 0.25 = $1,550.
- 3The $310 difference could go to savings or debt payoff instead.
3. If you don't meet the 40x rule
In expensive cities such as New York, landlords often require income of 40 times the rent. If you fall short, some accept a guarantor who earns around 80 times the rent, or a guarantor service that charges a fee, often around one month's rent.
4. Costs the advertised rent leaves out
- Building fees: some properties charge amenity, trash or parking fees.
- Utilities and renters insurance: electricity, internet and a renters policy.
- Broker fees: in some markets tenants pay them. New York City's FARE Act (2025) generally stops landlords passing on the fee for a broker they hired.
- Moving and deposit costs: a security deposit and moving expenses come up front.
5. Common mistakes
- Using take-home pay with a gross-income rule. The 30% guideline applies to gross income unless a tool says otherwise.
- Ignoring other debts. A person with large loan payments may want to budget below 30%.
- Forgetting a cash cushion. Keep several months of rent in savings after you move in.
Enter your own income in the Rent Calculator, which also shows the 40x rule and a three-month cash cushion. If you are comparing renting with buying, see how much down payment a $400,000 house needs and the House Affordability Calculator.
6. Frequently asked questions
How much rent can I afford on a $60,000 salary?expand_more
About $1,500 a month at the 30% guideline ($5,000 gross monthly × 0.30), or $1,250 at a more conservative 25%.
What is the 30% rule for rent?expand_more
A guideline that rent should be no more than 30% of your gross monthly income. It is a rule of thumb, not a requirement.
What is the 40x rule?expand_more
Many landlords require annual income of at least 40 times the monthly rent, which works out to rent of 30% of gross monthly income.
Should I use gross or net income?expand_more
The 30% rule uses gross income. Some people prefer a net-income check, for example 25% of take-home pay, which is a stricter test.
7. Sources
- menu_bookCommon housing-affordability guideline (30% of gross income); landlord income requirements vary by market and property.
- menu_bookNYC FARE Act (2025) — rules on who pays a broker fee
Guidelines vary by landlord and city. This is educational information, not financial advice.