The general guideline is that rent should be about 30% of gross monthly income. This "30% rule" suggests that spending no more than 30% of income on rent allows for comfortable coverage of other expenses and savings goals. However, the suitability of this rule varies by income level, location, and personal financial circumstances. In some cases, spending less, like 20-25%, might be better to accommodate other costs or savings, especially if debt repayment is a priority. Alternatively, using the 50/30/20 budgeting rule, up to 50% of take-home pay may go toward needs (including rent), 30% to wants, and 20% to savings and debt payouts, but needs encompass more than just rent. Thus, while 30% is a helpful benchmark, individuals should consider their full financial picture when deciding rent affordability.
