Calculate This № 04 · Finance
Instrument № 04 - Finance

NYC 40×
Rent Rule

Does your income clear the 40-times threshold landlords use across the five boroughs? Stack incomes from up to six leaseholders.

Income required
40 × monthly rent

Guarantor typical
80 × monthly rent

Income basis
Gross, annualized
The lease
Incomes
Status -
Required income -
Combined income -
Max qualified rent -
Gap / surplus -

The rule, simply

Across New York City, most landlords screen tenants by a single ratio: your gross annual income should be at least forty times the monthly rent.

For a $3,000-a-month apartment, that means you need $120,000 in gross annual income to qualify on your own. Two leaseholders earning $60,000 each combined hit the same number.

required_income = monthly_rent × 40

Common questions

Is this a law?

No. It’s a screening guideline used by most NYC landlords and management companies, but no statute enforces it. Some buildings use a different multiplier (35×, 45×) or look at debt-to-income ratios. Smaller landlords sometimes ignore it entirely.

What counts as income?

Gross income before taxes - what shows up on the top line of a pay stub, not what hits your bank. Self-employed applicants should use documentable income (tax returns, 1099s, bank deposits).

What about net-effective rent?

Use the gross figure. If a listing advertises “one month free” and a net-effective rent of $2,750 on a 12-month lease, the actual rent is closer to $3,000. Convert: gross = net × lease_months ÷ paid_months.

What if I’m short?

Three common paths: a guarantor at 80× rent, prepaying several months upfront, or finding a building that accepts a different ratio. Companies like Insurent and Rhino offer institutional guarantors for a fee.