Rent affordability calculator
Enter your income, see how much rent fits.
How much rent can I afford?
A common guideline is 30% of gross income for rent and utilities together. On $60,000 a year, that is $5,000 a month and $1,500 for housing.
Where does the 30% rule come from?
HUD counts a household as cost-burdened when housing costs, including utilities, exceed 30% of monthly income, and severely cost-burdened above 50%.
Should utilities count?
Yes — HUD’s measure includes them. Add electricity, gas, water and similar bills to the rent.
Is 30% right for everyone?
It is a benchmark, not a rule. Other debts, savings goals and local costs matter, and many renters pay more.
What if I am paid hourly?
Choose "Hourly wage": the calculator multiplies your rate by weekly hours and 52 weeks. $25 an hour at 40 hours is $52,000 a year and $1,300 a month for rent and utilities.
What counts as income if I share the home?
HUD’s measure uses household income, which includes the income of everyone in the household, matched against the housing costs of the whole household. Two earners making $60,000 and $40,000 who pay $1,800 in rent and $250 in utilities together spend 24.6% of their combined $100,000. Enter the combined income and the full rent, not one person’s share of each.
What does cost-burdened mean for my budget?
It means rent and utilities take more than 30% of income, leaving less for everything else. Above 50% HUD calls it severe. The calculator shows both lines for your income: $1,500 and $2,500 a month at $60,000 a year. Because the calculator uses income before tax, the share of your take-home pay is higher than the percentage shown.
How the check works
Annual income is divided by 12 to get monthly income. The calculator then shows 30% and 50% of that figure and compares your rent plus utilities with it. If the share is 30% or less, it is not cost-burdened by HUD’s definition; above 30% it is cost-burdened, and above 50% severely so. Hourly pay is turned into a yearly figure as rate × hours per week × 52 weeks.
Worked example: $60,000 a year
Monthly income is $60,000 ÷ 12 = $5,000. Thirty percent is $1,500 and fifty percent $2,500. Rent of $1,300 plus $150 of utilities is $1,450, which is 29.0% of income and under the line. If the rent were $2,000 with $200 of utilities, the $2,200 total would be 44.0%, and the household would be cost-burdened but not severely so.
Common mistakes
Leaving utilities out is the first: HUD’s housing cost includes them, so a rent that looks just under the line can be over it with the bills added. Applying the guideline to one person’s income when several people share the home is the second, because HUD matches total household income with total housing cost. Treating 30% as a rule for every budget is the third; the number is a threshold HUD uses to count households with a housing problem, and other debts, savings goals and local prices can make a different share right. Using monthly income in the yearly box, or the reverse, changes every figure by a factor of 12.
Sources: HUD USER, Comprehensive Housing Affordability Strategy (CHAS) data, Background: the definitions of cost burden (monthly housing costs including utilities above 30% of monthly income) and severe cost burden (above 50%), and of household income as the income of all members of the household. The guideline is a measurement standard HUD uses to count households, not a rule that fits every budget. See the budget calculator, the debt-to-income ratio calculator, the home affordability calculator and the salary calculator.
An estimate for planning only — not financial advice. How we check our calculators.