Quickly check if a prospective tenant earns enough to comfortably afford your rental. Uses the widely accepted 30% gross income rule.
The rent-to-income ratio is one of the most important factors in tenant screening. A tenant whose rent exceeds 30–35% of their gross monthly income is statistically more likely to struggle with payments during financial disruptions. This calculator shows you the ratio instantly and tells you whether the applicant meets the standard threshold — helping you make consistent, defensible screening decisions.
— Results
The 30% rule states that a renter should spend no more than 30% of their gross monthly income on housing. This benchmark originated from a 1969 US government standard and has since become the most widely used metric for tenant income qualification in the rental industry.
Your rental is $1,500/month. To qualify at 30%, a tenant needs gross income of at least $5,000/month ($60,000/year). Many landlords require 3x the monthly rent — which is mathematically the same as the 30% rule.
When rent consumes 40%+ of a tenant's income, they have very little financial buffer for emergencies — a car repair, medical bill, or job interruption can immediately result in missed rent. The 30% threshold leaves enough income for other necessary expenses and savings. Some landlords in high-cost markets accept up to 35–40% with strong credit and rental history.
Always use gross income (before taxes) for this calculation, as that's the standard industry practice. Using net income would make the threshold appear lower and could cause you to reject qualified applicants. Verify income with pay stubs, bank statements, or employer letters — not just the applicant's stated figure.
In most jurisdictions, yes — income requirements are a legitimate and common part of tenant screening, provided they are applied consistently to all applicants. Some cities (notably in California and New York) have source-of-income protections that limit how landlords can apply income thresholds. Always check your local fair housing laws.
You can generally combine verifiable income sources — wages from multiple jobs, regular freelance income documented by tax returns, government benefits, etc. The key is that each source must be verifiable and reasonably expected to continue through the lease term.
Industry standard is gross income (before taxes and deductions). Some landlords in high-tax states use net income to get a more realistic picture of spending power, but this deviates from the standard and should be disclosed in your rental criteria upfront.