Home / The 30% Rent Rule: Where It Comes From and When It Fails
The 30% Rent Rule: Where It Comes From and When It Fails
The 30% rule is the most quoted rent guideline in the country. Here is what it actually measures.
The rule
HUD considers households that pay more than 30% of their income for housing to be cost-burdened, and more than 50% to be severely cost-burdened. The 30% figure is used in federal housing programs and by many landlords, who often ask for income of about 40 times the monthly rent (12 months divided by 30% is 40).
Where it falls short
HUD's own research office points out that the rule ignores household size and income level. A family with children spends more on food and care than a single adult with the same income. A high earner can spend more than 30% and still have plenty left, while a low earner at 30% may not cover the basics.
A better check: what is left
That is why this site focuses on the dollars left after rent and essentials. For example, at $4,000 a month take-home, a single adult renting a typical Tampa-area 1-bedroom ($1,648) has $2,352 left after rent and about $834 after groceries, transportation and health care at average levels. Try your own numbers in the calculator.
- HUD PD&R Edge: Rental burdens and the 30 percent rule
- HUD: Fair Market Rents, FY2027 county-level data
Common questions
Is the 30% rule based on take-home pay?
No, it uses gross income. On take-home pay the same rent is a bigger share.