The 30% rule says rent + utilities should not be more than 30% of gross monthly income. This old guideline from 1960s-1980s.
In 2024-2026 data, 49% of US renter households (22.7 million) spend over 30% on rent and utilities. This is record high. About 26% (12.1 million) spend over 50%.
Rents rose faster than renter incomes. From 2001 to 2024, rents up 30% in real terms, renter incomes only up 9%.
Median rent around $1,600-$2,000/month depending on source. For many cities, you need $60k-$100k+ salary to keep rent under 30%.
Average renter hourly wage about $23.60, but needed “housing wage” for modest 2-bedroom is $33+ in many places. Wages too low for rule to work for lower/middle income people.
Experts say rule outdated because of high other costs (student debt, healthcare, food). Many now recommend 20-25% if possible.
Harvard JCHS America’s Rental Housing 2026: https://www.jchs.harvard.edu/blog/six-takeaways-americas-rental-housing-2026
USAFacts on rent-to-income: https://usafacts.org/answers/how-much-do-households-spend-on-rent/country/united-states/
Newsweek/Realtor.com article on the claim: https://www.realtor.com/advice/rent/wages-in-america-are-too-low-for-the-30-rule-to-work-for-renters-anymore/