Rent-to-Income Ratio Calculator for Tenant Screening (3× Rule)

Rent-to-income ratio calculator

A quick, consistent screening check: how many times the rent does the applicant earn?

Results

Rent as % of income–

Minimum income required–

Max rent this income supports–

Income ÷ rent–

The 3× rule

Income ratio = gross monthly income ÷ monthly rent
Minimum income = rent × required multiple

Example: for a $1,500 unit, applicants earning $5,000 a month make 3.33× the rent, so rent is 30% of their income and they meet a 3× requirement. A 3× rule means a minimum of $4,500 a month. At 3×, a $5,000 income supports up to $1,666.67 of rent.

Screen fairly and consistently

Write down your criteria and apply the same income multiple to every applicant. Fair housing laws prohibit treating applicants differently based on protected characteristics.
Many states and cities have source-of-income protections that affect how housing vouchers and benefits are counted. Some localities limit income ratios. Check your local rules.
Income is one factor. Rental history, verified income documents and your other written criteria matter too.

Once the lease is signed, log it in the Rental Property Tracker to track rent each month and get alerts before the lease ends.

Related calculators

Prorated rentPartial-month rent for move-in or move-out.Rent increaseNew rent, % change and turnover break-even.Vacancy costWhat an empty unit really costs.

FAQ

What is a good rent-to-income ratio?

Many landlords require gross income of about 2.5–3× the monthly rent, which means rent is 33–40% of income or less. Choose a standard, put it in writing, and apply it to every applicant.

Should I use gross or net income?

Most landlords use gross (pre-tax) monthly income because it's easier to verify consistently from pay stubs or offer letters. Whichever you use, state it in your criteria.

Can I count a co-signer or roommates?

Many landlords combine the incomes of all adult applicants on the lease, and some accept a guarantor at a higher multiple. Put your policy in your written criteria and apply it consistently.