If the monthly rent of an apartment is $2,000, then 3 times the monthly rent is $2000 x 3 = $6000 (monthly income required to keep housing payments less than 1/3 of income)13 Feb 2013
Do you have to make exactly 3 times the rent?
First, let's understand that the 3x rule (monthly income must be at least three times the monthly rent) is a measure of affordability; a tenant who cannot afford the rent for the unit is an eviction waiting to happen at some future point, so the landlord does not want things to get to that point.
Why do landlords ask for 3x the rent?
Why do most landlords want tenants to earn 3x the rent? Because it's an indicator (crude, but often generally accurate) of whether the tenants can afford the rent. If someone earns three times the rent, it's fairly likely that they can afford to live there. And that's important (very important) to a landlord.
What does 3 times rent mean?
The math would look like this: Monthly Rent X 3 = Minimum monthly rental income. For example, if the rent on an apartment costs $1,500 per month, then the applicant must gross a minimum of $4,500 per month in income.2 Aug 2018
How is rent income calculated?
Here's how to calculate the rent-to-income ratio: Take your tenant's gross monthly income and multiply it by 0.3. Since your rental's listed at $3,000 per month, the tenant may not be able to meet their obligation.
What does it mean to make 2.5 times the rent?
The Rent Calculator Equation: Monthly Income / 2.5 = Rent you can afford! It is recommended that your income is 2.5 times your monthly rent amount. Our simple rent calculator will help you determine the optimal rent in the Twin Cities apartment market for your personal budget.
What happens if you don't pay 3 times rent?
With a few exceptions, a landlord accepts a rental application if the prospective tenant's gross salary is at least three times higher than the monthly rent. This principle is sometimes referred to as the '3x the monthly rent' rule in the real estate world. Make your rental application impossible to reject.21 Jan 2022