Quick answer: On a 15,000 monthly income the 30% rule gives 4,500 a month, or 54,000 a year; paid in 4 cheques, that is 13,500 each.
How it's calculated
Affordable rent = monthly income × share of income. The common guideline is 30%, a long-standing US housing benchmark for when rent becomes a burden. Use a lower share if you have loan payments or want to save more.
In Saudi Arabia, the UAE and most of the Gulf, rents are quoted per year and paid in one or more cheques, so the calculator shows the yearly figure and the amount per payment.
Landlords elsewhere sometimes use the 40× rule (yearly income at least 40 times the monthly rent), which is close to 30%. Weighing up buying? Try the rent vs buy calculator.
Worked examples
- 15,000 a month, 30%: 4,500 a month → 54,000 a year
- 20,000 a month, 25%: 5,000 a month → 60,000 a year
Frequently asked questions
Should the 30% use gross or net income?
The guideline was set on gross income. With take-home pay the result is more cautious; in the Gulf, where salaries are mostly untaxed, the two are often close.
What if my housing allowance is separate?
Include the housing allowance in your monthly income, or simply compare it with the yearly rent.
Does this include agency fees and deposit?
No. Agency commission, the security deposit and registration (Ejari in Dubai, Ejar in Saudi Arabia) are paid on top at the start.
Why does the number of cheques matter?
Fewer cheques mean larger payments at once, so you need more cash ready. Landlords may also offer a lower rent for fewer cheques.
What other costs come with renting?
Utilities, chiller or service charges, moving costs and renewal fees. Allow for these before settling on your top rent.
Is 30% right for everyone?
No, it is only a starting point. If you have loans, family costs or a savings goal, a lower share may suit you better.