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 |

$32,000 | $800 |

$36,000 | $900 |

$40,000 | $1,000 |

$44,000 | $1,100 |

$48,000 | $1,200 |

$52,000 | $1,300 |

$56,000 | $1,400 |

$60,000 | $1,500 |

$64,000 | $1,600 |

$68,000 | $1,700 |

$72,000 | $1,800 |

$76,000 | $1,900 |

$80,000 | $2,000 |

$84,000 | $2,100 |

$88,000 | $2,200 |

$92,000 | $2,300 |

$96,000 | $2,400 |

$100,000 | $2,500 |

$104,000 | $2,600 |

$108,000 | $2,700 |

$112,000 | $2,800 |

$116,000 | $2,900 |

$120,000 | $3,000 |

$124,000 | $3,100 |

$128,000 | $3,200 |

$132,000 | $3,300 |

$136,000 | $3,400 |

$140,000 | $3,500 |

$144,000 | $3,600 |

$148,000 | $3,700 |

$152,000 | $3,800 |

$156,000 | $3,900 |

$160,000 | $4,000 |

$164,000 | $4,100 |

$168,000 | $4,200 |

$172,000 | $4,300 |

$176,000 | $4,400 |

$180,000 | $4,500 |

$184,000 | $4,600 |

$188,000 | $4,700 |

$192,000 | $4,800 |

$196,000 | $4,900 |

$200,000 | $5,000 |

$204,000 | $5,100 |

$208,000 | $5,200 |

$212,000 | $5,300 |

$216,000 | $5,400 |

$220,000 | $5,500 |

$224,000 | $5,600 |

$228,000 | $5,700 |

$232,000 | $5,800 |

$236,000 | $5,900 |

$240,000 | $6,000 |

$244,000 | $6,100 |

$248,000 | $6,200 |

$252,000 | $6,300 |

$256,000 | $6,400 |

$260,000 | $6,500 |

$264,000 | $6,600 |

$268,000 | $6,700 |

$272,000 | $6,800 |

$276,000 | $6,900 |

$280,000 | $7,000 |

$284,000 | $7,100 |

$288,000 | $7,200 |

$292,000 | $7,300 |

$296,000 | $7,400 |

$300,000 | $7,500 |

This is great, but you should really go about it once you’ve figured out your actual take-home pay. A salary can look great on paper, but if in an expensive city like New York 40% is withheld from each pay check, your actual budget is a great deal less than you think.