Most people use the “30% rule” as a starting point: aim to keep rent around 25–30% of your gross monthly income, then adjust up or down based on your debts, location, and goals.

The classic guidelines

  • 30% of gross income: Long‑standing benchmark used in housing and budgeting guides; for a gross monthly income of 5,000, that suggests up to 1,500 in rent.
  • 50/30/20 rule: About 50% of your take‑home pay goes to “needs” (rent, utilities, groceries, transport), 30% to “wants,” 20% to saving and debt payoff.
  • 40x rent rule: Some landlords want your annual income to be ~40× the monthly rent (e.g., 80,000 income → about 2,000 rent max).

In recent years, many renters (especially in big, expensive cities) end up closer to 35–40% of income on rent, but that usually squeezes savings and other goals.

When 30% is too high or too low

You might want less than 30% on rent if:

  • You have high-interest debt or big financial goals (house down payment, aggressive investing).
  • Your job or industry feels unstable.
  • You prefer a larger emergency fund and more flexibility.

You might stretch above 30% if:

  • You live in a high-cost city where even modest places exceed that benchmark.
  • You have very low debt and strong savings habits, so a slightly higher rent won’t derail you.

A rough modern “comfort band” many planners use is 25–30% if you can, up to 35% in expensive areas, with anything over 40% flagged as risky for most people.

A quick way to test your number

  1. Start with 25–30% of gross income as a target.
  2. Add up monthly debt payments (loans, cards) and non‑negotiables (childcare, insurance, subscriptions).
  3. Check what’s left for savings, fun, and irregular costs (travel, car repairs, gifts).
  4. If you can’t save at least 15–20% of your income and still live reasonably, your rent may be too high for your situation.

Simple example: On 4,000 gross per month, 30% is 1,200. If that still leaves room to cover debts and save a few hundred, that rent is probably workable; if not, you may need to aim lower.

Forum and “real life” vibes

Recent discussions on personal finance forums and social platforms are full of people saying the 30% rule feels outdated in 2025–2026, especially in big metros, and that more folks are at 35–45% just to get a safe, decent place. Some posters treat 30% as “ideal if you can swing it,” not a strict requirement. Others argue that if rent over 35–40% keeps you from building any savings, it’s a sign to consider roommates, cheaper neighborhoods, or even different cities.

Simple takeaway you can use

  • Solid target: 25–30% of gross income.
  • Acceptable stretch for many: up to ~35% if you’re still saving and not drowning in debt.
  • Red flag zone: 40%+ unless you have unusually stable income and very low other expenses.

If you tell me your income, debts, and city type (big metro vs small city vs rural), I can walk through a specific “how much should YOUR rent be” number for you. Information gathered from public forums or data available on the internet and portrayed here.