How much rent can I afford?
The most common guideline is to keep rent at or below 30% of your pay before taxes. Here's what that looks like by hourly wage, and how to make the numbers work when rent is higher.
Rent by hourly wage
| Pay, 40 hours a week | Monthly pay before taxes | 30% of pay before taxes | Monthly take-home | 30% of take-home |
|---|---|---|---|---|
| $10/hour | $1,733 | $520 | $1,562 | $468 |
| $12/hour | $2,080 | $624 | $1,847 | $554 |
| $15/hour | $2,600 | $780 | $2,271 | $681 |
| $18/hour | $3,120 | $936 | $2,689 | $807 |
| $20/hour | $3,467 | $1,040 | $2,967 | $890 |
| $22/hour | $3,813 | $1,144 | $3,246 | $974 |
| $25/hour | $4,333 | $1,300 | $3,664 | $1,099 |
| $30/hour | $5,200 | $1,560 | $4,360 | $1,308 |
Take-home pay is after federal income tax, Social Security and Medicare for a single worker with no state income tax. State taxes and benefits lower it further.
Where the 30% rule comes from
The U.S. Department of Housing and Urban Development (HUD) considers a household “cost burdened” when it spends more than 30% of income on housing, and “severely cost burdened” above 50%. Landlords often use a similar test and ask that your monthly income be about three times the rent.
For lower incomes, 30% of pay before taxes can still be too much, because taxes and other essentials take a bigger share. The 30% of take-home column is a safer target if you can find it.
If your rent is higher than that
In many cities, rent above 30% is normal, not a personal failing. What matters is whether the rest of your plan still works. These can help:
- Plan the rest of the month around what's actually left after rent and bills.
- A roommate or a cheaper place at your next lease renewal can change your whole budget.
- Check whether you qualify for help with food, health care or utilities, which frees up money for rent. Use the benefits checker.
- If you're paid every two weeks, make sure the paycheck before rent is due can cover it. The planner's paycheck calendar shows this.
Questions
How much rent can I afford on $15 an hour?
About $780 a month using 30% of pay before taxes, or about $681 using 30% of take-home.
Does rent include utilities?
HUD's 30% measure includes basic utilities, so if you pay electric, gas and water separately, aim for rent a bit lower than the table.
What about the 50/30/20 rule?
It puts about 50% of take-home pay toward all needs, including rent, food, transportation and minimum debt payments. Try the 50/30/20 calculator.
Related
Sources
- HUD User · Housing cost burden and the 30% measure
- IRS Publication 15-T (2026) · Federal income tax withholding
General information for planning, not financial, tax or legal advice. Figures are estimates for 2026 and can change. Leftover Planner is not affiliated with the IRS or any government agency.