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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.

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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

  1. Enter monthly gross income and monthly rent.
  2. Enter utility costs (if separate from rent) and insurance.
  3. 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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