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By Rachael O'Connor
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It's the rule every renter has heard at least once in their life—but with rising costs and stagnant wages, Newsweek spoke to experts to learn whether it is still achievable to spend just 30 percent of your income on rent.
The 30 percent rule is the idea that renters should aim to spend no more than a third of their wages on housing, and over the years has become a staple of personal finance tips. Lending Tree advises that most lenders require that your monthly mortgage payment should be no higher than 28 percent of your total monthly income. Realtors, too, like to ensure a potential renter makes at least three times the monthly rent.
In New York City, Mayor Zohran Mamdani has announced a major housing plan with affordable homes for tenants, reserved for the lowest-income households, according to Realtor.com. Thirty percent of the newly financed units will be reserved for extremely low-income New Yorkers.
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In these cases, rent will be capped at 25 percent of monthly income—even lower than the previously aimed-for 30 percent, which now, combined with higher prices for gas, food and entertainment, would already see some people struggle to make their paycheck last.
In May 2026, Americans are grappling with rising gas prices as well as ongoing concerns about the cost of living. The pandemic sparked a global rise in prices, which have not fallen back to pre-COVID levels, and inflation rates in the U.S. sat at 3.8 percent in April, according to the Bureau of Labor Statistics.
Housing costs also shot up at that time, and while some rates are starting to reduce, are outdated financial frameworks like the 30 percent rule doing more harm than good?
With Rising Rents, the Old Rule Is From a Different Time
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Colorado-based real estate agent and investor Brett Johnson believes the 30 percent rule has "value," but "location makes a huge difference."
While Denver has higher wages, it also has much higher rent than a small town in Colorado, where rent is more affordable but the available jobs are likely to have much lower salaries.
"The 30 percent rule was much more realistic before rents jumped during and after the pandemic," he told Newsweek. "It is still possible in some markets, but I would not call it common anymore."
The average price of a one-bedroom apartment in the United States was $1,141 in January 2020, according to data from Statista. Prices peaked in August 2022 at $1,427, and by April 2026, were an average of $1,356.
Jon Brooks, a Florida-based housing market analyst at Momentum Realty, agreed, telling Newsweek the 30 percent rule is "advice from a different economic era," and is no longer "realistic for many middle-class renters." In his experience, costs are closer to 38 percent "for many households once you factor in rent, insurance, utilities and other unavoidable costs."
He said that whether an individual can achieve the 30 percent rule today "depends heavily on geography and lifestyle tradeoff, and while still possible in smaller, lower-cost cities, they are "far less attainable" in many formerly affordable areas.
However, he said the steep rise due to the pandemic is "slowly dissipating, and prices are starting to revert, although slowly." He predicted that over time, "ratios will fluctuate back down as renters vote with their feet."
Brooks advised building financial flexibility, such as by relocating to lower-cost areas or having roommates for longer than planned.
It's Achievable—With Compromises
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Florida-based realtor Jim Chamberlin of Vulcan7 told Newsweek he is increasingly seeing people making "tradeoffs" to keep housing as affordable as possible.
"They are taking on roommates later in life, moving farther from work, downsizing, and cutting back pretty heavily in other areas just to try and keep housing more manageable," he said—and "realistically," renters are generally spending up to 45 percent of their salary when rent, utilities, parking, and insurance is factored in.
Atticus LeBlanc, based in Georgia, is the founder of co-living marketplace PadSplit, and agrees the 30 percent rule is "simply not connected to the financial realities facing millions of Americans today," as people live further away from work to afford something less than three times their salary, but then have the added cost and time of transportation.
According to a YouGov survey for Apartments.com, 54 percent of surveyed Americans would choose a smaller home before having to live with roommates, and the resistance to considering having roommates increases with age. However, some don't have a choice.
LeBlanc told Newsweek his company is seeing "enormous demand for shared housing" as people try to regain "financial breathing room," and prioritize "affordability, flexibility and proximity to their jobs over having an entire unit to themselves."
These days, Chamberlin says, "staying under 30 percent is becoming the new exception rather than the norm," despite people having "solid careers and pretty decent incomes."
He advised people to "stop treating 30 percent as that pass or fail test," and instead focus on having "room to save, handle emergencies, and avoid piling up debt after paying for housing every month."
LeBlanc agreed: "If someone spends slightly more on housing but dramatically less on transportation and commuting, they may actually be in a far stronger financial position overall."
A Higher Salary Doesn't Mean You'll Achieve the 30 Percent Rule
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Texas-based finance expert Sanju Subnani of JustAnswer told Newsweek the 30 percent rule is "still doable," but it depends on many factors.
"In some parts of the country, where wages and job opportunities are not as plentiful, rents tend to be cheaper than average," he said, and the rise of remote work makes it easier for some to live in a more affordable area.
"However, a higher salary doesn’t always mean increasing expenses at will is ideal. Lifestyle creep is a real risk, and [it is] easy to lose control of once you can afford to spend more than 30 percent on rent."
Chamberlin suggested that "social media and lifestyle expectations have absolutely added pressure to people," who may think they "need to live in certain neighborhoods or high-end buildings"—meaning that even if you can technically afford it, you're spending more than you need to.
"Society has become a lot more materialistic due to social engagement, which has had an impact on how people spend."
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