Platform · Glossary
Rent-to-income ratio.
Median rent divided by median household income, expressed as a percentage. The 3Y benchmark tooltip puts it precisely: "Share of typical income spent on rent. This is a negative metric, where lower is better."
Rent-to-income ratio = Median Gross Rent ÷ Median Household Income
The 30% threshold
Thirty percent is the conventional affordability ceiling — the share of income above which households are described as "rent-burdened" by HUD and most housing analyses. It's also a useful threshold for landlords: markets where typical households are paying close to or above 30% have less headroom for further rent increases without rising delinquency, lower occupancy, and turnover spikes.
How to read it
- Under 25% — affordability headroom; market can usually absorb above-trend rent growth
- 25–30% — fully priced for current incomes; rent growth tracks income growth
- Above 35% — tight affordability; rent growth requires either income growth, household downsizing, or rising delinquency
The ratio is a leading indicator for the durability of rent growth, not a verdict on whether a market is investable.