If you spend 30% of your gross salary on rent, it could be $1144.00. However, it all depends on your lifestyle and financial situation.
| Salary Type | Amount |
|---|---|
| Hourly Salary | |
| Daily Salary | |
| Weekly Salary | |
| Monthly Salary | |
| Annual Salary |
| Monthly Spending Journey | Amount |
|---|---|
| Maximum rent you can afford | |
| Transportation (14.5%) | |
| Grocery (12.7%) | |
| Insurance (10.4%) | |
| Health (7.5%) | |
| Entertainment (5.7%) | |
| Recommended savings on your salary (19.2%) | |
| Recommended rent you can afford on your salary |
Is the 30% rent rule mandatory?
The 30% rule states that you shouldn’t spend more than 30% of your gross (pre-tax) monthly income on rent.
Example:
If you make $4,000/month, your maximum rent should be around $1,200/month. There are many other factors that can affect your rental percentage.
- Different cities, different realities: In places like NYC, LA, or San Francisco, many renters spend 40%, even 50% of their income on rent. In cheaper areas, people can spend less than 25% and be just fine.
- Your lifestyle and priorities matter: Some people are okay with spending more on rent if they don’t have any other major expenses. Others prioritize saving, traveling, or paying off debt – so they spend less on housing.
Although some landlords or property managers check the rent-to-income ratio, many also look at credit scores, savings, and job stability. So, spending 30% is not always mandatory.
Comments