Rent Burden

Rent burden is a measure of how much of a renter’s income goes toward paying rent each month.

Housing experts generally consider a renter to be rent burdened when they spend more than 30% of their gross monthly income on rent. This threshold is widely used by HUD and other housing agencies to identify households that may be struggling to afford stable housing. When rent takes up too large a share of income, renters typically have less money left over for food, transportation, healthcare, and savings.

There are two common levels renters may hear about:

• Rent burdened: spending more than 30% of gross income on rent
• Severely rent burdened: spending more than 50% of gross income on rent

For example, a renter earning $3,500 per month who pays $1,400 in rent is spending about 40% of their income on housing. That puts them in the rent burdened category, leaving only $2,100 for all other monthly expenses.

According to Census ACS data, a large share of renters in the United States typically fall into the rent burdened category, with rates often higher in major metro areas. Rent burden may vary significantly depending on local housing market conditions.

Understanding your own rent burden matters because it can help you decide whether a unit fits your budget before you sign a lease. If you are already rent burdened and facing housing instability, a local tenant rights organization may be able to connect you with rental assistance programs or other resources.