Rent and applications
Do I really need to make 3 times the rent to get approved?
Updated By the Housing Rocket moderators
Short answer
Many landlords ask for gross monthly income of about three times the rent, so a $1,500 apartment needs about $4,500 a month before taxes. It is a common standard, not a law. Some landlords accept 2.5 times, some ask for more, and many will approve you below it with a guarantor, savings or a larger deposit.
Landlords use the income ratio because it is quick and predicts whether rent will be paid on time. How strictly they apply it varies a lot.
- Big complexes often apply the rule automatically in their screening software, with little room to argue.
- Private landlords may look at the whole picture: job stability, savings, references and how long you stayed at past places.
- In some high-cost markets, New York being the best-known example, landlords often state the rule as annual income of about 40 times the monthly rent, which works out to roughly the same thing.
- Roommates applying together can usually combine incomes, though some landlords require each person to meet a share of the rule.
If you fall short, ask before you pay an application fee: "I earn 2.7 times the rent and have four months of rent in savings. Would you consider my application?" Many landlords will tell you honestly whether it is worth applying, and some will suggest a guarantor or an extra month of deposit, where local law allows it.
Want the whole picture? Read Renting Your First Apartment: Applications, Leases and Move-in Costs.