The 30% rent rule: how much of your income for rent?
Where the rule of thumb for rent comes from, what it comes to in dollars, a calculator for one income or two, and when 30% is the wrong number.
Checked October 22, 2026
What the 30% rule says
Housing takes up to 30% of income, and the other 70% covers the rest of life: food, transport, debts, saving, fun. If you search "rule of 30" in this context, this is the rule people mean. The same words mean other things in other fields.
Where the 30% rule comes from
The firmest source we could open is the U.S. Census Bureau, which says that, according to HUD, households are considered cost-burdened when they spend more than 30% of their income on rent, mortgage payments and other housing costs, and severely cost-burdened above 50%. In 2023, over 21 million renter households, 49.7% of the 42.5 million for whom rent burden is calculated, spent more than 30%.
HUD's own pages did not load for us, so we cite that definition through the Census release and not from HUD directly. The Census release says nothing about the history of the 30% figure, and we do not either. Note what it is there: a line used to count households that are stretched, not a personal budget.
A worked example
| Step | Math | Amount |
|---|---|---|
| Income | $6,500 a month | |
| Most for housing | $6,500 x 0.30 | $1,950 |
| Left for everything else | $6,500 - $1,950 | $4,550 |
Run it the other way to check a place you are looking at. Rent of $2,200 on that income is $2,200 / $6,500 = 33.8%, over the line.
30% rent calculator
Type one income, or add a partner's to see the split two ways.
Pick one basis, before tax or take-home, and use it for both of you. Nothing you type here leaves this page.
- Most for housing30% of income$1,950
- Left after housing70% of income$4,550
The 30% rule for a couple with two incomes
Say you earn $6,500 a month and your partner $4,500, so $11,000. Thirty percent is $3,300 of rent for the household.
| Split | You pay | They pay | Share of own income |
|---|---|---|---|
| By income | $1,950 | $1,350 | 30% and 30% |
| 50/50 | $1,650 | $1,650 | 25% and 37% |
Splitting by income is the only version where each person stays at the 30% line. 50/50 is under the line for one of you and over it for the other, though the rent is the same. TD Bank says 50/50 works well when both earn similar amounts, and suggests a proportional split when they do not. Our guide on how to split bills based on income has the steps, and the fair split calculator does it with your numbers.
When the 30% rule doesn't fit
- Low income. 30% of a small income may leave too little for food and transport.
- High income. 30% of a large income may be far more than you need to spend on housing, if you also want to save a lot.
- Costly cities. Where rents are high, less may fall under the line. That is about the market, not about your discipline.
- One income, two people. A rule on one person's pay does not tell you what the household can carry. Use both.
- Debt and goals. If you carry loans or are saving for something big, see the budget rules for how the rest might divide.
Questions people ask
What is the 30% rent rule?
A rule of thumb that housing should take no more than 30% of your income. It matches the line the Census Bureau, citing HUD, uses to call a household cost-burdened: more than 30% of income on housing costs.
How much of your salary should go towards rent?
The rule says up to 30%. On $6,500 a month that is $1,950. Whether that is right for you depends on your other costs. The rule is a line to measure against, not a target.
What percentage of income should go to rent?
30% or less is the common rule of thumb. The Census Bureau says households spending more than 30% on rent, mortgage payments and other housing costs are cost-burdened, and above 50% are severely cost-burdened, per HUD.
Is the rule of 30 for rent based on gross or take-home pay?
The Census release says "income" and does not say before or after tax. Pick one, use it for every number, and note that 30% of take-home is a stricter test than 30% of gross.
What counts as housing cost?
The Census release says rent, mortgage payments and other housing costs. Whether utilities are in depends on who is counting, so decide for yourselves and stay consistent.
How does the 30% rule work for a couple?
Add both incomes and take 30%, or have each person pay 30% of their own, which comes to the same total. Splitting by income does exactly that. 50/50 puts a bigger share of the smaller income on rent.
Sources
2 sources · read October 22, 2026
Every number on this page comes from census.gov and td.com. If a source has changed since, the source is right.
Wonderful gives general information. It isn't a financial or tax advisor.