Rent affordability by income
How much rent can I afford making $20 an hour?
At $20 an hour, 40 hours a week for 52 weeks, you earn about $41,600 a year, or $3,467 a month before tax. Landlord income checks of 3x and 2.5x rent point to about $1,156 to $1,387 a month, while the 30% budgeting guideline points to about $1,040 a month for total housing costs, including utilities. Your hours matter a lot, so this page also shows part-time examples and lets you change the hours and weeks.
30% for housing costs
$1,040 /mo
Rent plus utilities, not rent alone
3x monthly rent
$1,156 /mo
Common landlord check
2.5x monthly rent
$1,387 /mo
More lenient check
Before tax: all figures use gross income, which is what landlords usually check. Hourly figures assume 40 hours a week and 52 paid weeks a year. You can change both in the calculator.
Try your own numbers
Pre-filled with $20 an hour. Change your pay, hours or weeks, or add a rent you're looking at to see how it compares.
Your estimate
30% for housing costs: $1,040 a month. 3x monthly rent: $1,156 a month. 2.5x monthly rent: $1,387 a month
- Gross per year
- $41,600
- Gross per month
- $3,467
| Rule | Max rent / month | Your rent |
|---|---|---|
| 30% for housing costs | $1,040 | Above |
| 3x monthly rent | $1,156 | Above |
| 2.5x monthly rent | $1,387 | Within |
$1,200 rent is 34.6% of your gross monthly income. A 3x example would look for about $43,200 a year; 2.5x would look for about $36,000.
The 30% guideline is for total housing costs, such as rent plus utilities, so the rent that fits it is lower if you pay utilities separately. Rules of thumb only. Landlords set their own requirements and may also look at credit, debt, rental history and local rules.
What each rule says for $20 an hour
The three rules give different answers because they measure different things. The 3x and 2.5x rules are screening checks some landlords and property managers use, comparing your income with the rent alone. The 30% rule is a budgeting guideline for total housing costs: US housing agencies generally describe households spending more than 30% of income on housing, including utilities, as cost-burdened. If you pay utilities or other required housing costs on top of rent, the rent that fits a 30% budget is lower than the figure below.
| Rule | How it's worked out | Max rent / month | Per year |
|---|---|---|---|
| 30% for housing costs | Monthly gross income × 0.30 | $1,040 | $12,480 |
| 3x monthly rent | Monthly gross income ÷ 3 | $1,156 | $13,867 |
| 2.5x monthly rent | Monthly gross income ÷ 2.5 | $1,387 | $16,640 |
If you're choosing a budget, the lower end is the safer starting point. If you're checking whether a listing is realistic, look for the landlord's own income requirement, which is often in the listing or application.
How your hours change the answer at $20 an hour
Hourly pay makes rent affordability depend on your schedule. Here's the same $20 rate at different weekly hours, all assuming 52 paid weeks a year.
| Hours / week | Gross / month | 30% housing costs | 3x rent |
|---|---|---|---|
| 20 | $1,733 | $520 | $578 |
| 30 | $2,600 | $780 | $867 |
| 40 (full time) | $3,467 | $1,040 | $1,156 |
Overtime can help your budget, but landlords may not count it if it isn't regular. If you take unpaid time off, lower the paid weeks in the calculator. Each unpaid week takes about $22 off the monthly 3x figure.
Upfront costs to plan for
Before you get the keys, you'll usually pay more than one month's rent. Security deposit rules vary by state and landlord, so the example below assumes a deposit equal to one month's rent.
| Rent level | First month | Deposit (1 month) | Subtotal |
|---|---|---|---|
| Rent at the 30% figure ($1,040) | $1,040 | $1,040 | $2,080 |
| Rent at the 3x figure ($1,156) | $1,156 | $1,156 | $2,311 |
On top of that, budget for application fees, moving costs, utility and internet setup, renters insurance and basic furniture. Some landlords also ask for last month's rent or pet deposits upfront. The move-in cost calculator adds these up for you.
How a roommate changes the numbers
Some landlords look at combined income on a shared lease; others check each tenant separately. These examples use combined gross income and the 3x rule.
| Your roommate earns | Combined income | Max rent (3x) | Your share |
|---|---|---|---|
| $20 an hour (same as you) | $83,200 | $2,311 | $1,156 (50/50) |
| $18 an hour full time | $79,040 | $2,196 | $1,098 (50/50) $1,156 (by income) |
Splitting by income means each person pays the same share of their pay. Use the roommate affordability calculator or the rent split calculator for your exact numbers.
What else affects your application
Income is only one part of a rental application. Landlords may also consider:
- Credit history: some set a minimum score; others look at the full report.
- Existing debt: car, student loan and card payments reduce what's left for rent, even if the income rule looks fine.
- Rental history and references from previous landlords.
- Employment: how long you've been in your job, or proof of an offer letter.
- Savings: some landlords may consider proof of savings when income is below their requirement.
- Location: rents and typical requirements differ a lot between cities and states.
If your income is below a landlord's requirement, options can include proof of savings, a co-signer where the landlord accepts one, a roommate, or a lower-rent place. What landlords can ask for varies by state and city, so ask the property manager which alternatives they accept. Read do I need a co-signer? for more.
Answers at a glance
Frequently asked questions
How much rent can I afford making $20 an hour?
At 40 hours a week for 52 weeks, $20 an hour is about $41,600 a year, or $3,467 a month before tax. A 3x or 2.5x landlord income check points to rent of up to about $1,156 or $1,387 a month. The 30% budgeting guideline points to about $1,040 a month for total housing costs, including utilities, so the rent that fits it is lower if you pay utilities separately. Landlord requirements vary, and your debts, savings and local rents matter too.
Is $20 an hour enough for $1,200 rent?
$1,200 is 34.6% of $3,467 gross monthly income. It is within the 2.5x example and above the 30% and 3x examples; keep in mind the 30% guideline is meant to cover utilities as well as rent. A landlord using 3x would look for about $43,200 a year. Whether an application is accepted depends on the landlord, your credit, debts and rental history.
Do these numbers use take-home pay?
No. They use gross income before tax, because landlords usually compare rent with gross income. Your take-home pay after taxes and deductions is lower, so the same rent takes a bigger share of what actually reaches your bank account. Check your pay stub when you build your budget.
What if I work part time at $20 an hour?
At 30 hours a week, $20 an hour is about $2,600 a month before tax, which points to about $867 a month under 3x or $780 for total housing costs under the 30% guideline. Change the hours in the calculator above to match your schedule. If your hours vary, landlords may look at an average from recent pay stubs.
Will I need a co-signer?
It depends on the landlord. Some ask for a co-signer (sometimes called a guarantor) when income is below their threshold, credit history is limited, or you're a first-time renter. Others may consider proof of savings or other alternatives. What landlords can ask for, including deposits, varies by state and city, so ask the landlord or property manager what alternatives they accept.