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Rent Burden Calculator
HUD defines households as 'cost burdened' when rent + utilities exceed 30% of gross income, and 'severely cost burdened' above 50%. This calculator computes both metrics and shows the implications for savings, debt paydown, and lifestyle.
HUD status
Cost burdened
Total housing burden %
33.6%
Rent-only burden %
30.0%
Total monthly housing cost
$1,850
How the math works
$5,500 gross income, $1,650 rent + $180 util + $20 ins = $1,850 total housing. Burden: 33.6% — 'cost burdened' by HUD. Rent-only burden: 30%, right at threshold.
To drop below 30%: raise income $500/mo, drop rent $150, or both. For households severely burdened (>50%), downgrading unit or moving to a cheaper market often beats trying to increase income in the short term.
How to Use
- Enter monthly gross income and monthly rent.
- Enter utility costs (if separate from rent) and insurance.
- See rent burden %, total housing burden, and HUD threshold alignment.
Frequently Asked Questions
What's 'housing cost burden' by HUD?
Monthly housing cost (rent + utilities + insurance) ÷ gross monthly income > 30% = cost burdened. > 50% = severely cost burdened. Nearly half of US renters are cost burdened; about a quarter are severely so.
Does HUD use gross or net income?
Gross. Standard in US housing policy. Private landlord 3x-rent rule is also gross-based. Consumer financial planning generally uses net for affordability decisions.
Why does burden matter to a tenant?
Cost burden directly reduces savings rate, emergency fund capacity, debt paydown. High rent burden → trapped renting longer, harder to buy. Below 30% burden = healthy; above 50% = financial stress.
What about utility-included rents?
Still include utility cost in housing burden — it's real housing cost whether bundled or separate. Don't under-count by using 'base rent' alone.
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