Rent Calculator
How Much Rent Can I Afford?
Use this rent calculator to estimate the affordable monthly rental spending amount based on your income and debt level.
Affordability Results
Recommended Monthly Rent
$0
Based on 30% of your monthly income
Maximum Monthly Rent
$0
Based on 36% rule (income minus debt payments)
Monthly Budget Breakdown
Monthly Income:
$0
Monthly Debts:
$0
Available for Other Expenses:
$0
What is Rent?
For this calculator, rent is the act of paying a landlord for the use of a residential property. Used as a noun, it can also refer to the actual payment for the temporary use of a residential property. There can be other definitions of rent, such as economic rent, but they are used in other contexts for other purposes.
Although the terms “rent” and “lease” are often used interchangeably, their actual definitions differ; a lease is a contract signed in order to rent a residential property, which formally defines how much the tenant pays, the length of the rent, and all the rules the landlord and tenant agree to follow in their rental relationship.
Important Considerations When Renting
One of the most important factors regarding rent is the actual rent amount and whether or not it is affordable. There are many methods for determining what is considered affordable rent, and this calculator is simply one method that may help. Affordable is a relative term and carries a different meaning for different people.
Common Guidelines for Rent Affordability
- The 30% rule suggests that you should spend no more than 30% of your gross monthly income on rent
- The 28/36 rule suggests that housing expenses should not exceed 28% of your gross monthly income, and total debt payments (including housing) should not exceed 36%
- Some financial advisors recommend using the 50/30/20 budget, where 50% of your income goes to necessities (including housing), 30% to wants, and 20% to savings and debt payoff
Other considerations when renting include:
- Other Costs — Aside from recurring rent payments, there are other costs associated with renting. Upfront costs such as security deposit, application fee, insurance, and pet deposit can be mandatory. Recurring utility costs such as internet, water, gas, and electricity will need to be accounted for as well.
- Location — Consider proximity to work, family, friends, and places you frequent. Think about school districts, crime rates, and access to public transportation.
- Quality — Research when the property was built or renovated. Check for amenities such as a pool, gym, or laundry facilities. Ensure all appliances are present and in working condition.
- Size — Consider the number of bedrooms, bathrooms, and overall square footage. Ensure there is enough cabinet and closet space for your belongings.
- Landlord — A good landlord can significantly improve your renting experience. Be aware of any restrictions they might place on noise levels, decorating, pets, etc.
Ways to Reduce the Amount Spent on Rent
- ✓ Get roommates — Shared two-bedroom apartments are typically 30% cheaper per person than one-bedroom apartments
- ✓ Consider location — Areas a bit farther from city centers or popular neighborhoods often have lower rental costs
- ✓ Negotiate rent — Don’t be afraid to ask for a better rate, especially if you plan to stay long-term
- ✓ Look for move-in specials — Some properties offer first month free or reduced deposits
- ✓ Time your search — Winter months often have lower rental prices due to decreased demand
- ✓ Consider longer lease terms — Landlords may offer discounts for 18-month or 2-year leases
- ✓ Trade services for rent reduction — Some landlords will reduce rent in exchange for property management or maintenance help
- ✓ Look into rental assistance programs — Government programs like Section 8 or local housing assistance may be available depending on your situation
Rent vs. Buy
It is uncommon for people to become homeowners without renting first. Sooner or later, renters may reach a point where they are faced with the decision of continuing to rent or choosing to buy instead.
Advantages of Renting
- Lower upfront costs (no down payment)
- More flexibility to relocate
- No responsibility for repairs or maintenance
- No property taxes or homeowner’s insurance
- Access to amenities you might not afford in a home
Advantages of Buying
- Building equity instead of paying a landlord
- Potential tax benefits from mortgage interest
- Freedom to modify your living space
- Stable housing costs (with fixed-rate mortgage)
- Long-term investment potential