On $60,000 a year, the 30% rule says you can afford $1,500 a month in rent. That covers a one-bedroom at HUD Fiscal Year 2027 Fair Market Rent in Phoenix ($1,493) and Wichita ($823), but not quite in Austin ($1,530) or Dallas ($1,536), and nowhere near New York ($2,729), where staying at 30% takes $109,160 a year. Across all 387 metros MoveMath covers, 314 have a one-bedroom FMR of $1,500 or less.
The 30% rule
HUD calls a household cost-burdened when it pays more than 30% of income for housing and severely cost-burdened above 50% (HUD PD&R). The rule became federal policy through the 1969 Brooke Amendment, which capped public-housing rent at 25% of income; Congress raised the cap to 30% in 1981. See the 30 percent rule for rent for its history and limits.
The math: annual gross income × 0.30 ÷ 12.
| Annual gross income | Rent at 30% |
|---|---|
| $40,000 | $1,000 |
| $50,000 | $1,250 |
| $60,000 | $1,500 |
| $75,000 | $1,875 |
| $100,000 | $2,500 |
| $120,000 | $3,000 |
| $150,000 | $3,750 |
Income needed for a one-bedroom
Income needed = Fair Market Rent × 12 ÷ 0.30. Fair Market Rent is HUD’s 40th-percentile gross rent, including tenant-paid utilities, for standard-quality units rented by recent movers.
| Metro | 1-BR Fair Market Rent | Income needed | Share of a $60,000 income |
|---|---|---|---|
| San Francisco, CA | $3,003 | $120,120 | 60.1% |
| New York, NY-NJ | $2,729 | $109,160 | 54.6% |
| Los Angeles, CA | $2,402 | $96,080 | 48.0% |
| Seattle, WA | $2,180 | $87,200 | 43.6% |
| Chicago, IL-IN | $1,780 | $71,200 | 35.6% |
| Nashville, TN | $1,650 | $66,000 | 33.0% |
| Dallas, TX | $1,536 | $61,440 | 30.7% |
| Austin, TX | $1,530 | $61,200 | 30.6% |
| Phoenix, AZ | $1,493 | $59,720 | 29.9% |
| Wichita, KS | $823 | $32,920 | 16.5% |
Source: HUD FY2027 Fair Market Rents (91 FR 56156). At $60,000, a one-bedroom at Fair Market Rent is under 30% only in Phoenix and Wichita among these metros, and more than half of income in New York and San Francisco.
A two-bedroom on $90,000
At $90,000 the 30% line is $2,250 a month.
| Metro | 2-BR Fair Market Rent | Income needed | Within $2,250? |
|---|---|---|---|
| New York, NY-NJ | $2,971 | $118,840 | No |
| Chicago, IL-IN | $2,011 | $80,440 | Yes |
| Austin, TX | $1,817 | $72,680 | Yes |
| Dallas, TX | $1,807 | $72,280 | Yes |
| Nashville, TN | $1,798 | $71,920 | Yes |
| Wichita, KS | $1,043 | $41,720 | Yes |
Check any metro and income in the rent affordability calculator, which lists every bedroom size.
What the 30% rule misses
Taxes. The rule uses gross pay, but rent comes out of take-home pay. A single renter on $90,000 in New York City keeps $64,402 after 2026 federal, state, city and payroll taxes. A one-bedroom at Fair Market Rent ($32,748 a year) is 36.4% of gross pay but 50.8% of take-home.
Everything else. What matters is whether enough is left after rent and taxes. MoveMath’s full budget — rent, taxes, food, one car, sales tax and a $1,000-a-month estimate for other spending — gives:
| Single renter, 1-BR at Fair Market Rent | Rent share of gross | Left over per year |
|---|---|---|
| Austin, $60,000 | 30.6% | $13,463 |
| New York, $90,000 | 36.4% | $10,492 |
| New York, $60,000 | 54.6% | −$8,344 |
The Austin renter on $60,000 is slightly over the 30% line yet keeps more than the New York renter on $90,000. At $60,000 in New York, the modeled costs exceed income. See any of these in the relocation budget planner.
Sharing, couples and families
- Roommates. Two people splitting a New York two-bedroom at Fair Market Rent pay $1,486 each, which fits the 30% line on $59,420 apiece — about half the $109,160 needed to rent a one-bedroom alone.
- Couples. The 30% line uses household income. A couple earning $120,000 combined can spend $3,000 a month, enough for a two-bedroom at Fair Market Rent in every metro in the two-bedroom table above, including New York ($2,971) — but not San Francisco ($3,697).
- Families. Children add bedrooms. MoveMath gives one bedroom to the adults and one to every two children, so a family with three children needs three bedrooms: $3,760 a month in New York, which takes $150,400 a year at 30%. See how many bedrooms you need.
Ways to bring rent within reach
- Fewer bedrooms. A New York studio at Fair Market Rent is $2,593, $136 a month below the one-bedroom.
- A different metro in the same region. Compare nearby metros with the where can I afford to live ranking.
- Roommates or a second earner. The 30% line rises with household income.
Full rent data by bedroom size are on every metro page, such as Austin and New York.