How Much Should I Spend on Rent?
Quick Answer
You should aim to spend 30% or less of your gross monthly income on rent, but that’s not realistic for everyone. You may spend more or less than that depending on your income, other expenses and the rental market where you live.

The amount you should spend on rent depends on your income, your debt payments and other expenses, and your future financial goals. One general rule is to spend no more than 30% of your gross monthly income on rent. Another is that your essential expenses, including rent, shouldn't exceed 50% of your monthly take-home pay. However, these guidelines may not work for every situation. Here's what to keep in mind as you figure out how much you should spend on rent.
How Much Should I Spend on Rent?
You can calculate how much rent you can afford by using the 30% rule or the 50/30/20 rule. While these aren't universal answers for everyone, they can be good general guidelines to follow when determining how much of your income should go toward housing.
Use the 30% Rule
The 30% rule states that you should try to spend no more than 30% of your gross monthly income on rent. The idea is that using 30% or less of your income on rent allows you to pay your day-to-day expenses and set aside money to meet your financial goals.
Example:
If your gross monthly income is $5,000, you should spend no more than $1,500 per month on rent: $5,000 x 30% = $1,500
The 30% rule isn't realistic for all budgets, though. The nationwide average rent is $1,713, according to Experian research. A renter with a monthly gross income of $5,000 and rent of $1,713 per month would be spending 34.26% of their income on rent.
Use the 50/30/20 Rule
If following the 30% rule isn't feasible given average rents in your area, the 50/30/20 rule is another way to figure out how much of your income should go toward rent. Using this budgeting method, 50% of your monthly take-home pay goes toward necessities (including rent), 20% goes toward debt payments and savings (including saving for retirement) and the remaining 30% is used for discretionary and lifestyle-related expenses.
Start by totaling all of your typical monthly expenses and categorizing them. Because rent falls under necessary expenses, here's how you might determine what you can afford.
- Figure out what 50% of your monthly net income is.
- Calculate the amount you're currently spending on necessities other than rent. Try to estimate new or changing expenses, such as utilities at your new place.
- Subtract the total amount you're spending on other necessary expenses from your 50% figure. This number is what you can afford to pay in rent each month.
Example:
Here's how the 50/30/20 method works with a net monthly income of $5,000 and $700 per month going to non-rent necessities.
- Divide 50% by 100 to convert it to a decimal: 50% ÷ 100 = 0.50
- Multiply the decimal by the total amount: 0.50 x $5,000 = $2,500 (This is how much you can spend on necessities.)
- Subtract the amount you're spending on non-rent necessities: $2,500 - $700 = $1,800
So, your monthly rent payment should be $1,800 or less.
Learn more: Budgeting for Needs vs. Wants
Factors That Affect Rent Affordability
Several factors impact rent affordability, including:
- Location: Rental properties in areas with good schools; easy access to shopping, restaurants and public transportation; and safe, walkable neighborhoods can generally command higher rents.
- Housing inventory: The law of supply and demand means landlords can charge more in areas where there's a shortage of rental properties.
- Size and features of unit: Larger apartments with more rooms typically cost more. Features such as air conditioning, balconies or patios; assigned parking spaces; storage units; or an in-unit washer and dryer can also affect the cost of rent.
- Shared amenities: Rental properties may charge more if there are shared amenities such as a gym, pool, community recreation center, pet day care, building security, doorman or laundry room.
- Utilities: Some rental properties include the cost of utilities, such as water, trash pickup and Wi-Fi, in the rent, which can raise the cost.
- Local laws: Some states, counties or cities have rent control or rent stabilization laws that regulate landlords' ability to raise rents on existing tenants. Landlords can typically charge any amount when renting to a new tenant, but once you're in place, these laws may protect you from excessive rent increases.
Learn more: What to Do if Your Rent Increases
Other Considerations When Deciding How Much to Spend on Rent
While rules of thumb can be a helpful starting point when making financial decisions, sticking to the math may not make sense in every situation. You may want to take a more holistic approach to budgeting for rent when:
- You have a big expense coming up. If you're saving for a major expense, such as a wedding or going back to school, you may want more wiggle room in your budget. Temporarily reducing your rent below 30% of your income could help you meet other financial goals.
- You need to move for work. When your employer or the job market requires relocating for work, you may not have much choice. Some employers help pay your moving expenses, either in a lump sum, by reimbursing you or by paying the movers directly. You might also be able to negotiate with your employer to get financial assistance with moving costs.
- You're in an unsafe living situation and need to move now. You may need to spend more than the typical amount for rent, at least temporarily, if you feel unsafe in your current rental. While you shouldn't commit to a lease you can't afford in the long term, it could be worth spending more than you normally would to get to safety as soon as possible. Then you can take time to search for a more affordable long-term rental.
- Access to a unique location is important to you. Sometimes paying more to live somewhere special makes sense, especially if it helps improve your health or save money in other ways. For example, you might spend more to live in a downtown apartment close to your job because you'll walk more, feel healthier and save on commuting costs and gym memberships.
Whatever approach you take, knowing the average cost of rent in your desired area can help you manage expectations. Estimating what rent in your new home might be, along with your other fixed expenses, can help you decide how much you're comfortable paying for rent each month.
Learn more: Financial To-Do List for Renting an Apartment
How to Save Money on Rent
Are you looking for ways to spend less on rent? Here are some ideas that can reduce your monthly costs:
- Move in with a roommate. While having a roommate isn't always ideal, it can cut your rent expense by half, or even more if you're comfortable living with two or three people.
- Shop around. When searching for a place to rent, you'll typically find several options at various price points. Do your due diligence and shop around to make sure you get the most value for your money.
- Look for move-in specials. Landlords sometimes offer special promotions to encourage new tenants to move in. For example, they may waive some or all of the security deposit requirements or give you a discount on your first month's rent.
- Sign a longer lease. Landlords value stability, so you may be able to negotiate a lower monthly rent in exchange for a longer commitment.
- Choose the right time to move. It's typically harder for landlords to find new tenants in the winter, so they may be more willing to give you a break on rent. In contrast, there's usually a lot of demand for rentals in summer, so rents may be higher then. However, there are usually more rentals available in summer, which gives you more options.
- Try bartering. You may be able to negotiate reduced rent by offering to provide housecleaning or handyman services or working part-time at the apartment complex.
Learn more: How to Negotiate Your Rent
Tip: If you're struggling to pay rent, talk to your landlord or property manager about options like assistance programs. You can also investigate tenant protection laws and resources that may help you.
The Bottom Line
Sometimes moving to a new home is the best way to make rent more affordable. Landlords typically run a credit check when you apply for a rental, and having good credit could increase your odds of approval. Before starting your search for a rental home, check your credit report and credit scores to get an idea of where you stand and whether improving your credit score could be beneficial.
Once you're in your new home, consider adding your rent payments to Experian Boost®ø. Experian Boost is a free feature that adds your on-time utility, streaming, phone and eligible rent and insurance payments to your Experian credit report, which could help improve your credit scores.
Instantly raise your FICO® Score for free
Use Experian Boost® to get credit for the bills you already pay like utilities, mobile phone, video streaming services and now rent.
No credit card required
About the author
Karen Axelton specializes in writing about business and entrepreneurship. She has created content for companies including American Express, Bank of America, MetLife, Amazon, Cox Media, Intel, Intuit, Microsoft and Xerox.
Read more from Karen