Loan Rent Affordability Calculator
Landlords, lenders and budgets each cap rent differently. This calculator shows all three ceilings at once — the 28% housing rule, the 30% gross rule, and the 28/36 rule that subtracts your real debts — so you know which one actually binds before you tour a place.
The three rules: 28% — housing at or under 28% of gross monthly income, the classic front-end ratio lenders use for mortgages. 30% — the long-standing HUD affordability line: above 30% of gross, a household is "cost-burdened" by definition. 28/36 — total debts including rent stay under 36% of gross, which is why car payments and card minimums cut your rent ceiling here. Landlords separately often require gross monthly income of 3× the rent, which is close to a 33% view — the strictest of the four usually runs the application.
How it works
All three rules run on gross monthly income (annual ÷ 12). The 28% ceiling is 0.28 × monthly gross. The 30% ceiling is 0.30 × monthly gross. The 28/36 ceiling is 0.36 × monthly gross minus your existing monthly debts — the rent that still fits after the car, the cards and the loans take their statutory share. Whichever ceiling is lowest is the one a careful budget (and most underwriters) will hold you to. If you enter a target rent, the verdict names which rules it passes and which it breaks.
Formula & worked example
Formula: Monthly gross = annual income ÷ 12. 28% ceiling = 0.28 × monthly gross. 30% ceiling = 0.30 × monthly gross. 28/36 ceiling = 0.36 × monthly gross − monthly debts (floored at $0).
Worked example: $72,000 income, $350 debts: monthly gross $6,000 — 28% → $1,680; 30% → $1,800; 28/36 → $2,160 − $350 = $1,810.
When to use this
- You are setting a search filter and want a ceiling with a reason behind it.
- A landlord’s income requirement needs checking against your real budget.
- You are deciding how much debt payoff would raise your rent ceiling.
- You are splitting a place with roommates and need each share’s test.
How to use it, step by step
- Enter gross annual income (before tax — the rules are defined on gross).
- Enter your real monthly debt payments.
- Read all three ceilings; the lowest is your working number.
- Optionally enter a target rent to see which rules it passes.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| Gross income | Annual pay before taxes and deductions | $52,000 → $1,300 at the 30% rule |
| Monthly debts | Required payments: auto, cards (minimums), student/personal loans, support | $0–$800 typical range |
| Target rent | A specific listing’s rent, to test against all three rules | Optional |
Another worked example
A $52,000 salary with no debts: ceilings of $1,213 (28%), $1,300 (30%) and $1,560 (28/36). The spread between the strictest and loosest rule is $347 a month — $4,164 a year — which is why naming the rule matters more than the word "affordable".
Frequently asked questions
How much rent can I afford on $72,000 a year?
Gross monthly income is $6,000. The 28% rule allows $1,680; the 30% rule $1,800; and with $350/month of existing debts, the 28/36 rule allows 36% × $6,000 − $350 = $1,810. In this case the classic 28% rule is the binding one at $1,680. Heavier debts are what usually flip that ordering — at $800/month of debts the 28/36 ceiling drops to $1,360, below both other rules.
Why does the 28/36 rule give a higher number than 28% here?
Because with modest debts it has slack: 36% of gross minus $350 of debts leaves $1,810, above the 28% line. Add $800 of monthly debts instead and the 28/36 ceiling falls to $1,360 — the lowest of the three. The rule that binds is the one that sees your actual obligations.
What rent fits a $52,000 salary?
Gross monthly $4,333; the 30% rule gives $1,300/month, and with no debts the 28/36 rule gives $1,560 while 28% gives $1,213. Most budgets land on the 30% figure as the outer edge and treat anything under 28% as comfortable.
Should I use gross or net income?
The published rules use gross — that is what landlords and lenders screen on. For your own budgeting, net is the sterner and often wiser base: if taxes and deductions take 25%, every ceiling here drops by a quarter. The honest approach: pass the landlord’s gross test, then pass your own net test before signing.
What counts as a debt in the 36%?
Recurring required payments: auto loans and leases, credit-card minimums, student loans, personal loans, child support. Not utilities, subscriptions, groceries or insurance premiums — those matter for your budget but are not "debts" in the ratio. When in doubt, include it: the rule is a ceiling, not a target.
Is 30% still realistic in expensive cities?
Often not — in the highest-cost metros, median rents exceed 30% of median incomes, and households adapt with roommates, longer commutes, or simply being cost-burdened. The rules still earn their keep as a measuring stick: knowing you are at 38% tells you exactly how much of the budget the apartment is about to eat, even if you sign anyway.
How is this different from Rent vs Buy?
Rent vs Buy compares renting against owning over time. This calculator only answers "how much rent fits this income" — the question that comes first, whether the alternative is buying, roommates, or staying put. Run this for the ceiling, then Rent vs Buy for the strategy.