Tenant/Landlord Rent to Income Ratio.

Real Estate Broker/Owner with DMK Real Estate Ct RE Broker 0789963

Tenant/Landlord Rent to Income Ratio.

Many landlords depend on many factors when considering tenants such as:

  • Credit History and Score.
  • Background checks.
  • Rent to Income Ratio.
  • Debt to Income Ratio.

When it comes to the Rent to Income Ratio many landlords will use the 30% rule of allowing thirty percent of your gross income to go towards rent. So if you are making $40,000 a year then 30% of that will be your total rent which is $12,000 divided by 12 months is equal to $1,000.

A much easier way to do the math is multiply the monthly rent by 40 and that will give you the annual income required by the landlord.  $1,000 monthly rent times by 40 = $40,000.

Depending on rental supply & demand landlords will change this ratio to fit their needs, sometimes lowering it or even sometime requiring higher income to rent ratios of 50 times or more.

Rent to Income Ratio


Ultimately the rent to income ratio is just a guide to which all tenants/landlords need to discuss if they can properly afford the fees, debt to income ratio’s come into play, number family members and other expenses should be considered as well. For quick calculations on rent to income at 20%, 30% and 40% click here.

For more information on Buying, Selling or Renting in Lower Fairfield County, Connecticut contact DMK Real Estate.


 Assisting Home Buyers & Sellers with step by step guidance in Fairfield County, Connecticut contact DMK Real Estate, Darien, Ct.

Posted by

David Popoff
Connecticut Licensed Real Estate Broker
Realtor® Green
Seller Representative Specialist
Accredited Buyer Representative


DMK Real Estate, Darien, CT.
Cell (203) 228-0646




DMK Realty, 06820 





Facebook    Twitter    Linked in





click on logo to go to website







Find David Popoff Ct on Google+

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
Real Estate General Information
Connecticut Fairfield County New Canaan
renting in fairfield county
dmk realty
ct landlords

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi David.  I use the bank ratios of 28/38 and 650 FICO.

Aug 22, 2014 09:17 PM #1
Michael Decker
Gilbert, AZ
Right now is the best time to own a brand new home

Great article that offers some quick tips to help you fast calculations.  You are an upper echelon realtor.

May 04, 2015 06:27 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


David Popoff

Realtor®,SRS, Green ~ Fairfield County, Ct
Need Help? Ask me a question.
Spam prevention

Additional Information