Is the 3x Rent Rule Still Relevant in 2023?

Owning real estate in America and Europe has become 70% to 270% more difficult than in previous years. The main reasons for this are the construction sector, the restriction of areas to build real estate and inflation. In such a situation, the 3x rent rule emerges. The 3 x rent rule, which has been widely used and prominent for decades, continues to be recognized as a popular guideline for determining the appropriate rent.
But as with all sectors, with changes in rental markets and the economy, some have questioned its validity in 2023. We will take a detailed look at how to calculate if you make 3 times the rent, the pros and cons, changes in rental markets, alternative guidelines and the pros and cons of different rent affordability guidelines.

What Is The 3x The Rent Rule?

The 3x rent rule is a guideline that recommends tenants spend no more than 30% of their gross income on rent. This is often the reason why the question how to calculate if you make 3 times the rent is asked so often.
To calculate if you make 3x the rent, simply multiply the monthly rent by three. For example, if the monthly rent is $1,500, a tenant would need to earn at least $4,500 per month or $54,000 per year to afford the apartment. This guideline has been used for many years by landlords, property managers and tenants to determine whether a tenant can afford a particular apartment.

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