Before you start searching for your next apartment, you should know how much rent you can afford, or the income needed to get approved by a landlord.

**Rent to Income**

Landlords typically require that your annual income is at least 40 times the monthly rent. For example, if you and your roommate are looking at a $3,000 per month apartment, the landlord would require a combined income of $3,000 × 40, which equals $120,000. To determine how much rent you (and your potential roommates) can afford, **simply divide your combined annual incomes by 40**.

**How Much Rent is Affordable?
**You might have also heard that you should spend no more than 30% of your annual income on rent. Spending 30% of your yearly income on rent is widely believed to be an affordable amount, leaving enough money for all your other expenses.

What’s the difference between 30% and 40 times the monthly rent? Absolutely nothing, they’re just two different ways of deriving the same number. The 40x trick is just easier to calculate.

For example, let’s take $120,000 of income.

- 30% of $120,000 = $36,000.
- $36,000 ÷ 12 months =
**$3,000 per month**.

But to make the calculation easier, just divide $120,000 by 40.

- $120,000 ÷ 40 =
**$3,000 per month**. Voila! Math Magic!

Again, to determine how much rent you (and your potential roommates) can afford, **simply divide your combined annual incomes by 40**. Don’t have a calculator handy? Use the following table to look up your maximum rent.

Combined Annual Income |
Maximum Monthly Rent |

$30,000 | $750 |

$35,000 | $875 |

$40,000 | $1,000 |

$45,000 | $1,125 |

$50,000 | $1,250 |

$55,000 | $1,375 |

$60,000 | $1,500 |

$65,000 | $1,625 |

$70,000 | $1,750 |

$75,000 | $1,875 |

$80,000 | $2,000 |

$85,000 | $2,125 |

$90,000 | $2,250 |

$95,000 | $2,375 |

$100,000 | $2,500 |

$110,000 | $2,750 |

$120,000 | $3,000 |

$130,000 | $3,250 |

$140,000 | $3,500 |

$150,000 | $3,750 |