Rent-to-Income Calculator

How the rent-to-income ratio works

The rent-to-income ratio divides an applicant's gross monthly income (before taxes) by the monthly rent. The most common screening rule is that an applicant earns at least 3 times the rent, which keeps rent at or below about a third of their income. For example, a $1,500 unit calls for at least $4,500 a month, or $54,000 a year.

For roommates or co-applicants, many landlords add the incomes together before comparing to the rent. Some use a lower multiple, such as 2.5x, in high-rent markets.

Apply the same requirement to every applicant, and verify income with documents such as pay stubs or tax returns. Some states and cities limit income requirements, for example for applicants who pay part of their rent with a housing voucher. Check your local fair housing rules before you set one.