What’s the Right Rent for Your Income? Try EarnIn’s Rent Calculator

Figuring out how much rent you can afford isn’t always straightforward. Some people say the magic number is 25% of your income, others say 30%, while renters in expensive cities like New York City or Los Angeles may stretch that number to 35%. But life doesn’t always fit neatly into these formulas — especially if you’re living paycheck-to-paycheck or your income changes each month.

In fact, the U.S. Department of Housing and Urban Development (HUD) defines renters spending more than 30% of their income on housing as “cost-burdened.” According to recent HUD data, nearly half of all renter households in the U.S. fall into this category. That makes the old rules less reliable for many workers.

Instead of relying on generic ratios, the EarnIn Rent Affordability Calculator¹ gives you a personalized rent range based on your income — helping you decide what you can afford with more clarity and less guesswork.

What percentage of your income should go to rent? The 25%, 30%, and 35% rules

Financial experts often suggest spending between 25% and 30% of your gross income on rent. Some even stretch the guideline to 35%.

For example:

25% rule = more room for savings but harder in high-cost cities
30% rule = the most common benchmark
35% rule = allows for higher rent but can squeeze the rest of your budget

The limitations? These ratios assume steady income and average housing markets. If you’re an hourly worker, gig earner, or living in a pricey city, the math doesn’t always line up.

Rent-to-income ratio by income level

Here’s how the 25%, 30%, and 35% rent rules break down at different income levels.

Monthly income	25% rule	30% rule	35% rule
$2,000	$500	$600	$700
$3,000	$750	$900	$1,050
$4,000	$1,000	$1,200	$1,400
$5,000	$1,250	$1,500	$1,750
$6,000	$1,500	$1,800	$2,100

This table gives you a quick snapshot, but your true affordability depends on where you live and what other bills you’re balancing.

How location changes rent affordability

Housing costs don’t just shift by income; they shift by city. According to the U.S. Census Bureau, the median gross rent nationwide is around $1,406 per month. But averages can hide the extremes. For example:

High-cost California metros like San Jose–Sunnyvale–Santa Clara; San Francisco–Oakland–Fremont; and Los Angeles have median gross rents well above the national average.
Many mid-size and lower-cost areas fall well below the median, often dipping under $1,000 per month, making it easier to stay within the 30% income rule.

Your zip code can matter as much as your paycheck. So with housing costs varying widely by location, blanket rules aren’t always practical.

Beyond ratios: Budget factors you shouldn’t ignore

Even if your rent fits into the 30% guideline, you still need to budget for:

Utilities. Heat, water, internet, trash collection.
Groceries. Costs vary by city and household size.
Transportation. Car payments, gas, insurance, or public transit.
Debt payments. Credit cards, student loans, or personal loans.

If your income changes week to week — as it does for hourly workers, tipped employees, or gig earners — a fixed rent percentage becomes even harder to follow. And flexibility becomes a key factor in affordability.

Smarter rent planning with EarnIn’s calculator

That’s why the EarnIn Rent Affordability Calculator¹, which is based on income, is such an invaluable tool. Here’s how it works:

Start by entering your monthly income.
The calculator runs the 25%, 30%, and 35% rules for you.
The result is a clear rent range tailored to your earnings.

Instead of doing mental math, with EarnIn's calculator you can get a straightforward estimate in less than a minute. The tool is designed for real people with real budgets — it's not just financial theory.

Build a sustainable budget around rent

Rent is one expense that shouldn't be considered in isolation. The 50/30/20 budget rule is a popular framework:

50% for needs (rent, food, transportation)
30% for wants (entertainment, dining out)
20% for savings and debt repayment

Here’s how it breaks down per monthly income:

On $3,000/month

Rent at 30% = $900
Other needs = $600
Wants = $900
Savings/debt = $600

On $4,000/month

Rent at 30% = $1,200
Other needs = $800
Wants = $1,200
Savings/debt = $800

On $5,000/month

Rent at 30% = $1,500
Other needs = $1,000
Wants = $1,500
Savings/debt = $1,000

Balancing these categories can help ensure rent doesn’t squeeze out your ability to cover other essentials or prepare for emergencies.

Budgeting tips for paycheck-to-paycheck and variable-income renters

When income isn’t steady, budgeting around rent can get trickier — but it's not impossible. Here's some guidance:

Average your last three months’ of income to set a realistic baseline.
Aim under the max rule (closer to 25%) to leave breathing room.
Use EarnIn’s Cash Out² to access money you’ve already earned when small timing gaps threaten rent payments. Get up to $150/day, with a max of $750 between paydays — without high-interest loans or credit cards.
Try EarnIn's Tip Yourself³ tool. Even saving $10 a week automatically with this feature can create a cushion for rent and utilities, helping to reduce stress and avoid late fees.

These small moves can protect you from falling behind and give you more confidence when signing a lease.

Find the right rent with confidence

The “right rent” depends on your income, your location, and your lifestyle. Rules of thumb are helpful, but they don’t adjust when life changes. Maybe your hours shift, your expenses grow, or you’re planning for something new.

That’s why a personalized tool like the EarnIn Rent Affordability Calculator¹ can make the decision clearer. It can flex with your reality, which helps you plan smarter, reduce financial stress, and stay on budget. Because the right rent isn’t about what’s “average.” It’s about what’s right for you, right now.

FAQs

How much rent can you afford if you make $70,000?

At $70,000 a year ($5,833/month), the 30% rule suggests about $1,750/month in rent.

Can you afford $1,000 in rent making $20 an hour?

If you make $20/hour for 40 hours weekly, that’s about $3,467/month. A $1,000 rent is under 30%, so it’s affordable by rule of thumb.

How much rent can you afford if you make $60,000 a year?

A salary of $60,000/year is $5,000/month. Following the 30% rule, you could spend about $1,500/month on rent.

How much income do you need to afford $3,000 in rent?

To keep rent at 30%, you’d need $10,000/month or $120,000/year in income.

Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.

EarnIn is a financial technology company not a bank. Banking Services are provided by Evolve Bank & Trust or Lead Bank, both Member FDIC. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.

¹
The calculations provided are based on estimates and should be used for informational purposes only. Please be aware that comparisons may not be 100% accurate. The insights and data presented do not constitute financial advice, and we recommend consulting with a qualified financial advisor for personalized guidance.

²
A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out Maxes section of our Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out.

EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed may not be available at all times and/or to all customers. Restrictions and terms apply; see the Lightning Speed Fee Table and Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services.

³
Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details visit Evolve Bank & Trust Customer Account Terms. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.