What percentage of income should go to rent?

The classic 30% rule: spend no more than 30% of gross income on rent. Some use 25% of take-home pay (net). In expensive cities (NYC, SF, Boston), 30–40% is unavoidable. For financial health: housing below 30%, transportation below 15%, total fixed costs under 50%. Track yours with a budget calculator.

Is the 30% rent rule still valid in 2025?

The 30% rule was set in the 1960s for government housing programs. In 2025 with high rents and stagnant wages, many Americans pay 35–50%. The rule is still a useful benchmark, but urban renters may need to adjust other spending categories rather than violating it. Prioritize: emergency fund, then keep rent manageable.