CalculateRealEstateROI

Cash Flow

How do I know if my rent is sustainable?

Rent should be under 30% of local median renter income; 25% in soft markets.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Rent should be under 30% of local median renter income; 25% in soft markets.

Expanded explanation

When rents exceed 33% of local incomes, you hit affordability ceiling and turnover spikes. Stress-test sustainability before raising rents.

Examples

  • $1,800 rent on $5,500 median monthly income = 33% — at ceiling.

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