The 30% rule
Multiply your gross monthly income by 0.3. That is the most you can spend on rent plus utilities before you count as cost burdened. Spending more than 50% counts as severely cost burdened.
| Annual income | Monthly income | Rent at 30% |
|---|---|---|
| $25,000 | $2,083 | $625 |
| $30,000 | $2,500 | $750 |
| $40,000 | $3,333 | $1,000 |
| $50,000 | $4,167 | $1,250 |
| $60,000 | $5,000 | $1,500 |
| $75,000 | $6,250 | $1,875 |
| $90,000 | $7,500 | $2,250 |
| $100,000 | $8,333 | $2,500 |
| $125,000 | $10,417 | $3,125 |
| $150,000 | $12,500 | $3,750 |
What that means in popular metros
| Area | 1 bedroom | 2 bedrooms | Income for 2BR at 30% |
|---|---|---|---|
| Atlanta-Sandy Springs-Roswell, GA | $1,660 | $1,820 | $72,800 |
| Chicago-Joliet-Naperville, IL | $1,581 | $1,781 | $71,240 |
| Dallas, TX | $1,648 | $1,931 | $77,240 |
| Denver-Aurora-Centennial, CO | $1,754 | $2,089 | $83,560 |
| Houston-The Woodlands-Sugar Land, TX | $1,323 | $1,573 | $62,920 |
| Los Angeles-Long Beach-Glendale, CA | $2,085 | $2,601 | $104,040 |
| Miami-Miami Beach-Kendall, FL | $1,995 | $2,436 | $97,440 |
| New York, NY | $2,655 | $2,910 | $116,400 |
| Phoenix-Mesa-Chandler, AZ | $1,583 | $1,839 | $73,560 |
| Seattle-Bellevue, WA | $2,146 | $2,501 | $100,040 |
A quick shortcut: multiply a monthly rent by 40 to get the yearly gross income at which it takes 30% of pay.
How common is it to pay more?
In 2023, about 49.5% of renter households (22.6 million) were cost burdened, according to the Congressional Research Service.
Compare with rents where you live
HUD's Fair Market Rents estimate what a typical, modest rental costs in each metro area and county, including utilities. Look up your area to see the income needed for each apartment size, or use the rent affordability calculator.
Sources: Congressional Research Service, "Housing Cost Burdens in 2023: In Brief" (R48450, Mar 11, 2025); HUD Fair Market Rents (FY2026), HUD eGIS open data.
