Use this guarantor income calculator to find the tenant and guarantor income needed to qualify for an apartment, based on the 40x and 80x monthly rent rules.
Guarantor Income Formula
Landlords set income requirements as a multiple of the monthly rent. A tenant is typically expected to earn about 40 times the monthly rent per year, and a guarantor is held to a higher bar, often 80 times:
Required Tenant Income = Monthly Rent * 40 Required Guarantor Income = Monthly Rent * 80
Variables:
- Monthly Rent is the rent for the unit
- 40 is the tenant income multiple, meaning annual income of forty times one month's rent (the same as rent being 30% of gross income)
- 80 is the guarantor income multiple, set higher because the guarantor also supports their own housing costs
A guarantor, sometimes called a co-signer, promises to cover the rent if the tenant cannot. Because they may be paying two households at once, landlords ask them to earn roughly twice the tenant multiple. If your income falls short of the tenant requirement, the calculator shows how much guarantor income would be needed to close the gap.
Common Income Multiples
The exact multiple depends on the landlord and the market, but these are the figures you will see most often, along with the annual income they imply on a $2,500 rent.
| Applicant | Typical rule | Income on $2,500 rent |
|---|---|---|
| Tenant (standard) | 40x monthly rent | $100,000 |
| Tenant (lenient) | 36x (3x monthly income) | $90,000 |
| Guarantor (standard) | 80x monthly rent | $200,000 |
| Guarantor (strict) | 90x monthly rent | $225,000 |
Roommates can usually combine their incomes to meet the tenant requirement together, which lowers the income each person needs individually.
Example Problems
Example 1: Income needed to rent an apartment.
The rent is $2,500 a month. Using the standard rules, the tenant needs 2,500 * 40 = $100,000 a year, and a guarantor would need 2,500 * 80 = $200,000 a year.
Example 2: Deciding whether a guarantor is needed.
You earn $85,000 and want the same $2,500 apartment. The requirement is $100,000, so you are $15,000 short and will likely need a guarantor. That guarantor would need to show the full $200,000 in annual income to satisfy the landlord.
Frequently Asked Questions
How much does a guarantor need to make?
A guarantor is usually asked to earn about 80 times the monthly rent per year, which is roughly double the tenant requirement. On a $2,000 apartment that is around $160,000 a year. The higher bar exists because the guarantor is expected to be able to cover this rent on top of their own living expenses.
What income do I need to rent without a guarantor?
Most landlords look for annual income of about 40 times the monthly rent, which is the same as keeping rent at or below 30% of your gross pay. If you earn at least that much and have solid credit, you generally will not need a guarantor. If you fall short, a guarantor, a larger deposit, or combined roommate income can bridge the gap.
Can I use a guarantor if my income is a little low?
Yes. A guarantor is the most common solution when your income is below the landlord's threshold, when you are new to work, or when you are moving from another country without local credit history. The guarantor signs the lease and becomes legally responsible for the rent if you do not pay, which is why landlords hold them to the higher income standard.
