Housing Assistance › Rent affordability

Where the 30% rule comes from

Housing counselors have used the same yardstick for decades: rent and basic utilities should take about 30% of what you make before taxes. Above that line, government studies call a household "cost-burdened" — the rent starts crowding out food, medicine, and savings. Above 40%, the squeeze gets serious.

It is a rule of thumb, not a law. In expensive cities many people pay more and manage. But if you are choosing between two places, the 30% line is a fair way to see which one leaves your budget room to breathe.

This is not the Section 8 formula

If you have a housing voucher, your rent share is set differently. The housing office starts from your adjusted income — after subtractions for child care, some medical costs, and other items — and uses local payment standards. Only your housing office can run that math. This page is a plain budgeting check, nothing more.

Is your income low enough for housing help?

If the budget number looks impossible next to real rents in your area, that is worth knowing. Check the income limit checker to see if your household is under your county's limit for housing programs, and see your state's rent and income tables for what HUD considers a fair market rent near you.