Free tool

Rent-to-income ratio calculator

Enter a rent to see the gross income an applicant needs, or an income to see the most rent it supports. Use the common 2.5x or 3x rule, or your own.

Your rule: income must be at least
Monthly income needed
$6,000
Annual income needed
$72,000
Most rent this income supports
–

How the rent-to-income ratio works

The ratio compares monthly rent with gross monthly income. Under a 3x rule, an applicant earning $6,000 a month qualifies for rent up to $2,000. The same rule written as a percentage is rent at or below about 33% of gross income.

Monthly rentIncome needed at 2.5xIncome needed at 3x
$1,000$2,500 / month ($30,000 / year)$3,000 / month ($36,000 / year)
$1,500$3,750 / month ($45,000 / year)$4,500 / month ($54,000 / year)
$2,000$5,000 / month ($60,000 / year)$6,000 / month ($72,000 / year)
$2,500$6,250 / month ($75,000 / year)$7,500 / month ($90,000 / year)
$3,000$7,500 / month ($90,000 / year)$9,000 / month ($108,000 / year)

Using an income rule fairly

  • Write the rule down and apply the same one to every applicant for the unit.
  • Decide in advance how you count income from benefits, vouchers, self-employment and co-applicants.
  • Ask for the same proof of income from everyone, such as pay stubs or an offer letter.
  • Check your state and city rules. Some limit income requirements or protect source of income.

To collect income details in the first place, the free rental application form builder asks for employer and gross monthly income, and can ask applicants to upload pay stubs.

Questions

What is the 3x rent rule?
A common screening rule of thumb: the applicant's gross monthly income should be at least three times the monthly rent. For a $2,000 rent, that is $6,000 a month, or $72,000 a year, before taxes.
Is 3x the only standard?
No. Some landlords use 2.5x, some use 40 times the monthly rent as an annual figure (the same as about 3.3x), and some count combined income for applicants who will share the home. Pick one rule and apply it to every applicant.
Gross or net income?
Rent-to-income rules usually use gross income, before taxes and deductions. Say which one you use on your application so applicants report it the same way.
Are income requirements allowed everywhere?
Not always in the same form. Some states and cities limit income multiples or require landlords to count housing vouchers and other sources of income. Check your local rules before you set a requirement.