Leasing tool
The rent-to-income ratio is the fastest screen for whether an applicant can comfortably afford a unit. Enter the applicant gross monthly income and the rent to see the ratio and how it compares to the common 30% guideline.
Formula: Rent-to-income ratio = (monthly rent / gross monthly income) x 100
The widely used benchmark is the 30% rule: rent should consume no more than 30% of gross monthly income. Many operators also use an income-of-3x-rent threshold, which is the same idea expressed differently.
In high-cost markets, a higher ratio can still be workable, especially for applicants with savings or strong credit. Treat the ratio as one input alongside credit, employment, and rental history, and apply the same standard to every applicant for fair-housing consistency.
FAQ
It suggests spending no more than 30% of gross monthly income on rent. A $6,000 monthly income would point to about $1,800 in rent.
The standard ratio uses gross (pre-tax) monthly income, which is how the 3x-rent benchmark is also calculated.
