What percentage of income should go to rent?

A common benchmark is no more than 30% of gross household income. The AIHW's housing stress measure counts lower-income households paying more than 30% as being in housing stress. What's left after rent matters too: if you can't cover your costs and save, the rent is too high whatever the percentage.

Is the 30% rule still relevant?

It's a useful ceiling but a crude one - the AIHW itself notes some higher earners spend more than 30% without hardship, while a lower-income household can struggle below it. That's why this calculator also checks your budget and shows the lower of the two.

Rental Affordability Calculator

Calculate how much rent you can afford based on your income, expenses, and the 30% rule. Find out if your dream suburb is within budget.

Updated October 2026Built and checked by MaverickHow it's calculated Report an error

Your numbers

Updates as you type

Rental affordability

Affordable rent

$490/wk

30.0% of gross income

30% of income

$490/wk

of gross household income

Cash flow max

$602/wk

After expenses + savings

Limited by

30% of gross income

30% rule vs cash-flow approach

Rent above 30% of gross income is the benchmark the AIHW uses for housing stress in lower-income households. Your budget may allow less, so the lower of the two is shown.

Affordable
Rules of thumb

Where your after-tax income would go at that rent

Rent + expenses + savings + debts = budget. Surplus is your buffer.

Rent37.9%

Living expenses44.6%

Savings8.9%

Surplus8.6%

Rent burden alarms. Above 30% rent-to-income is officially “rent-stressed” by ABS definitions. Above 40% is severe rent stress. If your numbers push you into either zone, consider sharehouses, suburb changes, or income increases before signing a lease.

How it works

A common benchmark is to keep rent within 30% of gross household income - the AIHW counts lower-income households paying more than that as being in housing stress. Your budget may allow less: after tax, living costs, debts and the amount you want to save, what's left is the rent you can actually pay. This calculator works out both, taxing each income on its own at 2026-27 rates, and shows the lower.

1Enter your gross annual income (before tax).
2Add a partner's income if you're renting together.
3Enter your monthly living costs other than rent, including power, internet and transport.
4Set a monthly savings goal.
5Include any debt repayments (car, personal loan, credit cards).
6See the 30% figure, the rent your budget allows, and the lower of the two.

The figures today

The average new owner-occupier home loan was $842,000 in NSW and $664,000 in Victoria in the June quarter 2026, from the ABS. A two-bedroom unit on a new lease in NSW rents for a typical $785 a week.

House prices and loan sizes Rents by postcode

Worked examples

Single Professional

Earning $85,000, single, $2,500 a month of living costs, wants to save $500 a month.

Gross annual income: $85,000
Partner's gross income (if sharing): $0
Monthly non-rent expenses: $2,500
Monthly savings goal: $500
Monthly debt repayments: $0

30% of $85,000 is $490 a week. After tax ($5,607 a month), living costs and savings, the budget would allow $602 a week, so the 30% figure is the limit: $490 a week.

Questions people ask

What percentage of income should go to rent?: A common benchmark is no more than 30% of gross household income. The AIHW's housing stress measure counts lower-income households paying more than 30% as being in housing stress. What's left after rent matters too: if you can't cover your costs and save, the rent is too high whatever the percentage.
Is the 30% rule still relevant?: It's a useful ceiling but a crude one - the AIHW itself notes some higher earners spend more than 30% without hardship, while a lower-income household can struggle below it. That's why this calculator also checks your budget and shows the lower of the two.

The terms, in plain English

Housing Stress (30/40 measure): Lower-income households - the lowest 40% by income - that spend more than 30% of gross household income on housing costs. Used by the AIHW.
Commonwealth Rent Assistance: An extra payment for eligible renters who get certain Centrelink payments, worked out from the rent paid and the family situation.

Official sources

Borrowing Power Calculator

See if buying is cheaper than renting in your area.

Savings Goal Calculator

Plan your home deposit while renting.

Good to know

Rent above 30% of gross household income is the benchmark used in the AIHW's 30/40 measure of housing stress for lower-income households.
Income tax and the Medicare levy are federal, so take-home pay is the same in every state.
Commonwealth Rent Assistance is paid with some Centrelink payments to eligible renters; the amount depends on the rent and family situation.

Tips

Count everything that comes with the rent - power, gas, water where charged, internet and contents insurance.
If you're saving for a home deposit, every $50 a week less in rent is $2,600 a year more saved.
Check whether you're eligible for Commonwealth Rent Assistance if you get a Centrelink payment.
Look at the rent your budget allows as well as the 30% figure - the lower one is the safer limit.

Common mistakes

Treating 30% of gross income as a target rather than a ceiling.
Leaving power, internet and other bills out of your living costs.
Committing to a lease with nothing left for savings or a buffer.
Forgetting that tax comes out first - rent is paid from take-home pay.

Compare the real products

Every home loan rate banks publishFilter by purpose, repayment type, fixed term and LVR. Refreshed nightly from the Consumer Data Right.

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.