## Best answer

To calculate how much you should spend on rent,you’d simplymultiply your gross income by 30%. For example,if your gross monthly income is $5,000,the maximum you should be paying for rent is $1,500 (30% of 5,000 is 1,500).

## People also ask

### How much of your income should go to rent?

In other words, no more than 30 percent of a renter annual income should go toward housing costs. The math would look like this: (Gross Annual Income 12) X .3 = Maximum monthly rental income. For example, an applicant who makes $60,000 could, under this standard, spend up to $1,500 per month on rent.

### How do you calculate minimum monthly rental income?

Monthly Rent X 3 = Minimum monthly rental income. For example, if the rent on an apartment costs $1,500 per month, then the applicant must gross a minimum of $4,500 per month in income.

### How much can you afford to spend on housing?

The most common rule of thumb to determine how much you can afford to spend on housing is that it should be no more than 30% of your gross monthly income, which is your total income before taxes or other deductions are taken out. For renters, that 30% includes rent and utility costs like heat, water and electricity.

### How much should a tenant or tenant make?

The ideal potential tenant or tenants should make $2,700 per month (combined if more than one adult that is applying has an income). Model 3 ?Amount of Rent and Gross Annual Income This formula is a bit more confusing, but it combines a bit of both prior models to determine if the tenant or tenants can afford the rent.