Enter the combined gross income of tenants and the maximum RTI (rent-to-income) ratio allowed by law into the calculator to determine the Maximum Rent.

## Maximum Rent Formula

The following formula is used to calculate the Maximum Rent.

Rmax = GI * RTI

• Where Rmax is the Maximum Rent ($) • GI is the combined gross income of tenants • RTI is the maximum RTI (rent-to-income) ratio allowed by law ## How to Calculate Maximum Rent? The following example problems outline how to calculate Maximum Rent. Example Problem #1: 1. First, determine the combined gross income of tenants. In this example, the combined gross income of tenants is given as 10000. 2. Next, determine the maximum RTI (rent-to-income) ratio allowed by law. For this problem, the maximum RTI (rent-to-income) ratio allowed by law is given as .5. 3. Finally, calculate the Maximum Rent using the equation above: Rmax = GI * RTI The values given above are inserted into the equation below: Rmax = 10000 * .5 = 5000.00 ($)

Example Problem #2:

The variables needed for this problem are provided below:

combined gross income of tenants = 6000

maximum RTI (rent-to-income) ratio allowed by law = .75

Entering these values and solving gives:

Rmax = 6000 * .75 = 4500 (\$)