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🏠 Housing
Am I paying too much rent?
See if your rent-to-income ratio is above or below average.
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Your Rent-to-Income Ratio
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The 30% rent rule — is it still realistic?
The traditional guideline says spend no more than 30% of gross income on rent. This rule dates to 1981 US public housing policy. In 2026, reality looks different: major cities like New York, London, Sydney, and Zurich see median rent-to-income ratios of 35–50%.
Average rent-to-income ratios by country
- United States: National median 30%, but 40%+ in NYC, SF, LA
- United Kingdom: National median 31%, London 38%
- Germany: National median 27%, Munich/Berlin 33–35%
- Switzerland: National median 25%, Zurich 30%
- Australia: National median 32%, Sydney 38%
- Canada: National median 29%, Toronto/Vancouver 35%+
- Turkey: National median 35%, Istanbul 45%+
When high rent is actually fine
A high rent ratio is not always a problem. If you earn well, 35% of $8,000 still leaves $5,200 for everything else. The real concern is when a high percentage leaves too little for savings, food, and transportation. Look at the absolute amount remaining, not just the percentage.