Rent affordability table
Rent affordability indicates how much you can spend on rent based on your gross annual income, with the common benchmark used by landlords and letting agents being approximately 30% of your gross monthly income. Understanding what rent you can afford is a crucial first step, as it allows you to easily calculate the maximum monthly rent that fits within your budget based on your annual earnings.
Below table shows the monthly rent and the annual income expected based on the 30% rent-to-income rule, as well as the guarantor’s annual income requirement if one is needed.| Monthly Rent | Annual Income (30x) | Guarantor (36x) |
|---|---|---|
| £300 | £9,000 | £10,800 |
| £400 | £12,000 | £14,400 |
| £500 | £15,000 | £18,000 |
| £600 | £18,000 | £21,600 |
| £700 | £21,000 | £25,200 |
| £800 | £24,000 | £28,800 |
| £900 | £27,000 | £32,400 |
| £1,000 | £30,000 | £36,000 |
| £1,100 | £33,000 | £39,600 |
| £1,200 | £36,000 | £43,200 |
How is Rent Affordability Calculated?
The general rule of thumb is that your annual income should be at least 30 times the monthly rent.Annual Income ≥ Monthly Rent × 30
If your rent is £500/month, you should earn at least:
£500 × 30 = £15,000 per year
Alternatively, you can multiply the yearly rent by 2.5 times for a quicker calculation. For example, if the monthly rent is £500, you’ll need an annual income of £15,000 to comfortably afford it.
Monthly Income ≥ Monthly Rent × 2.5
If rent is £500/month, your monthly income should be:
£500 × 2.5 = £1,250/month
➡️ Which equals £15,000/year
Our rent affordability calculator helps you see whether your income comfortably covers the rent, making it easier to plan your budget. It also takes guarantor requirements into account, so you’ll know in advance if a guarantor might be needed.
It also accounts for guarantor thresholds, which are usually 36 times the monthly rent annually, providing landlords with a clear picture to make tenancy applications easier to manage.
Monthly Rent: £900
Required Tenant Income (×30):
£900 × 30 = £27,000/year
Required Guarantor Income (×36):
£900 × 36 = £32,400/year
Why Rental Affordability Matters?
Avoid Financial Stress: Many renters take on more than they can afford. This rent affordability calculator helps you find an affordable rent, so you can pay your rent without cutting back on essentials like groceries, bills, or savings.
Balance Rent with Real Life: Knowing how much rent you can afford helps you manage other monthly obligations, such as Council Tax, transport, and food expenses, without compromising your lifestyle.
Speed Up Your Rental Search: Knowing your rental limit range narrows down your property options, saving you time, effort, and the stress of viewing homes that aren’t a financial fit.
Strengthen Your Rental Application: Most letting agents and landlords follow the same affordability checks. Staying within the suggested range increases your chances of approval.
Make Smart, Informed Choices: Whether you’re debating between two properties, moving cities, or adjusting after a career change, this tool empowers you with data to support long-term, stress-free decisions.
Unsure About Your Next Steps? We’re Here to Help!
Now that you know how to calculate rent affordability, you might have questions or need additional guidance. Whether you’re a first-time renter, a student looking for your first flat, or a homeowner considering renting out your property, we’re here to offer personalised advice tailored to your unique needs.
What’s Next?
Need more clarity on your budget? We can help break down your affordability based on your situation and offer tips on managing your finances for a smooth rental experience.
Questions about guarantors? If you’re unsure whether a guarantor is required or how it affects your application, we can provide the support you need.
Ready to begin your rental journey? Whether you’re searching for properties or looking for a letting agent in Dundee, we’re here to guide you every step of the way.
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Frequently Asked Questions
How much of my income should go toward rent in the UK?
Aim for 30–40% of your net (after-tax) income. On £30,000 net yearly, that’s around £750–£1,000 per month. This range keeps space in your budget for bills, savings, and unexpected costs.
What if my income doesn't meet the 30x rule?
You might need a guarantor, often requiring 36x the rent in annual income. Alternatively, look at more affordable areas or shared housing. We can help you explore Dundee options or strengthen your application.
Do landlords check affordability, and what documents do I need?
Yes, most run credit checks and verify income. You’ll usually need three months’ bank statements, recent payslips, and an employer reference. Having everything ready speeds up the process.
How do I factor in deposits and upfront costs?
Plan for 1–1.5 months’ rent as a deposit plus the first month upfront. That’s typically £1,000–£3,000 in total. Our calculator can help check if your income comfortably covers this.
What's the difference between gross and net income for affordability?
Gross income is before tax; net is after tax. Landlords assess gross, but budgeting with net is more realistic. Use both figures in our tool for a clear picture.
Can students or low-income renters afford UK properties?
Yes, guarantors and shared rentals make it possible. In Dundee, student rents average £400–£600 a month. We offer tailored advice to match your budget.
How does rent affordability vary by UK region?
London often eats up 35%+ of income, while Scotland averages 25–30%. Regional costs vary widely, so local insight is key. We have a comparison table to guide you.
Do bills affect rent affordability?
Yes, budget an extra £200–£400 monthly for utilities and council tax. Knowing your total monthly costs prevents surprises. Our budget tips can help reduce these.
How can I improve my rent affordability?
Cut back on non-essentials, boost income with side work, or consider build-to-rent options with bills included. We offer free consultations to create a strategy for you.