Rent Affordability Calculator
Estimate a reasonable and sustainable rent amount based on household income, helping landlords and tenants understand affordability thresholds before signing a lease.
Best suited for: Landlords • Property managers • Tenants • Residential investors
Household Income
Monthly Fixed Expenses (Before Rent)
Affordability Assumptions
Recommended Maximum Rent: $
Assess revenue risk or tenant sustainability using the Vacancy Cost Calculator.
Understanding Your Results
The recommended rent amount reflects commonly used affordability guidelines designed to reduce financial stress and improve payment reliability.
- 30% Rule: A widely used benchmark suggesting rent should not exceed 30% of gross income.
- Lower Ratios: Often used in higher-risk or lower-margin situations.
- Higher Ratios: May be common in high-cost markets but increase risk for both tenants and landlords.
Affordable rent supports long-term tenancy and reduces turnover risk.
Next step (optional):
If you are setting rent for an investment property, continue to the Rent Increase Impact Calculator (BPM Pro).
How This Calculator Works
This calculator multiplies gross monthly income by the selected rent-to-income ratio to estimate an affordable rent ceiling.
Key assumptions:
- Gross income is used rather than net income
- No other debt obligations are considered
- Guidelines reflect general affordability standards, not legal requirements
This tool is intended as a planning aid, not a screening substitute.
When to Use This Calculator
Use the Rent Affordability Calculator when:
- Setting initial rent levels
- Discussing affordability with prospective tenants
- Evaluating rent increases
- Comparing rent expectations across markets
Common Mistakes This Tool Helps Avoid
- Setting rent without considering income sustainability
- Assuming higher rent always equals higher returns
- Ignoring tenant payment risk
- Applying rigid rules without market context
Related Tools
Continue your analysis with:
- Vacancy Cost Calculator – Understand the cost of lost occupancy
- Cash Flow Calculator – Evaluate affordability impacts on income
- Rent Increase Impact Calculator – Model rent changes (BPM Pro)
Important Note
The tools and calculators provided on this website are for informational and educational purposes only. The calculations and results are based on the information you provide and certain assumptions, and are not guaranteed to be accurate or complete. These tools are not intended to provide legal, financial, tax, or investment advice, and you should not rely on them as such.
The results generated by these tools do not constitute a guarantee of future performance, returns, or outcomes. Your actual results may differ significantly based on your specific circumstances, market conditions, and other factors not accounted for in these calculations.
We strongly recommend that you consult with qualified professionals—such as a financial advisor, real estate agent, accountant, or attorney—before making any financial, investment, or business decisions based on the results of these tools. Your use of these tools is entirely at your own discretion, and we are not liable for any damages, losses, or adverse consequences arising from your use of or reliance on these tools.