What Percentage of Income Should Go on Rent?
The familiar 30% rule is only a starting point. A safer rent target depends on your income, debt payments and how much you want left for savings and essentials. Use this guide to set a range and verify it with the HouseBudget Calculator.
Popular rules of thumb
- 25–30% of take-home pay suits many renters, leaving room for bills and savings.
- Up to 35% can work in expensive cities, but only if debts are low and you keep an emergency fund.
- Below 25% is wise if you have heavy childcare costs, unstable income or want to accelerate saving.
Check your debt load first
Add up monthly debt repayments (cards, car finance, loans). High debts reduce the slice of income left for rent. As a rough guide, try to keep rent + debts below 40–45% of take-home pay so you still have breathing room.
Factor in savings and seasonal costs
Aim to budget for a small emergency fund, annual expenses like insurance, and higher winter energy bills. If those items are tight, choose a lower rent percentage so your budget can flex.
Test your numbers in the calculator
- Enter monthly income and debts into the HouseBudget Calculator.
- Move the housing percentage slider between 25–35% to see how rent affordability shifts.
- Pick the lowest percentage that still leaves room for groceries, travel and savings.
- Save the resulting rent figure as your target when searching or renewing a tenancy.
When to adjust the rule
- Variable income? Base your percentage on your typical low month, not your best one.
- Paying off debt? Temporarily lower rent to free cash for repayments, then revisit later.
- House share vs. solo: Sharing can push your percentage down while still living centrally.
- Future plans: If you hope to buy soon, keeping rent closer to 25% can speed up your deposit.
Key takeaways
Start with 25–30% of take-home pay, adjust for your debts and goals, and use the calculator to settle on a realistic rent. A percentage that leaves headroom for savings is usually the safest choice.