How much rent can I afford on my salary?

The widely used '30% rule' suggests spending no more than 30% of your after-tax (take home) income on rent. For example, if your take home pay is $1,200 per week, the maximum recommended rent would be $360 per week. Some financial advisors recommend keeping rent to 25% of take home pay for a more comfortable budget. This calculator estimates your take home pay and applies your chosen percentage to determine an affordable rent.

What is the 30% rule for rent?

The 30% rule is a widely accepted financial guideline that suggests you should spend no more than 30% of your gross or after-tax income on housing costs, including rent. If you exceed this threshold, you may be considered to be in 'housing stress'. In Australia, the 30% rule is commonly applied to after-tax income. While it's a useful benchmark, the right percentage depends on your individual circumstances, location, and other expenses.

What is the average rent in Sydney?

As of 2025, the median weekly rent in Sydney is approximately $650 per week for a combined dwelling (houses and units). This varies significantly by suburb — inner-city and eastern suburbs can exceed $800/wk, while western suburbs may be $450-550/wk. Unit rents are generally lower than house rents. Rental prices in Sydney have been increasing steadily and are among the highest in Australia.

What is the average rent in Melbourne?

The median weekly rent in Melbourne is approximately $530 per week as of 2025. Melbourne generally offers more affordable rents than Sydney, though inner-city areas can be significantly higher. Outer suburbs like Werribee, Craigieburn, and Pakenham tend to have lower median rents around $400-450/wk, while inner-city areas like South Yarra and Fitzroy can exceed $600/wk.

How do landlords and agents assess rental affordability?

Most Australian landlords and real estate agents assess whether a tenant can afford a rental by checking that the rent is no more than 25-30% of the applicant's gross (before-tax) income. Some agents may require higher income-to-rent ratios, especially in competitive markets. They typically verify this through payslips, employment letters, tax returns, or bank statements provided with the rental application.

Rent Affordability Calculator

Enter your salary and see the maximum weekly and monthly rent you can afford, with comparisons to median rents in major Australian cities.

Last verified: 1 July 2025

How much rent can I afford in Australia?

The 30% rule: spend no more than 30% of take-home pay on rent. Above that threshold, you are technically in housing stress (ABS definition). Most Australian landlords and agents apply the same 30% test against gross income when assessing applications. Source: ABS Survey of Income and Housing; Anglicare Rental Affordability Snapshot.

Worked example. A single person on $80,000 gross takes home about $1,223/week after tax and Medicare. At 30% of take-home, affordable rent is ~$367/week (25% = ~$306/week). Sydney's median rent is ~$650/week — so on $80k, Sydney is well past housing stress. Brisbane ($600/wk) and Melbourne ($530/wk) also exceed 30% of take-home at this income.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

From the Mate Network

Rent Assistance →

Check if you qualify for Commonwealth Rent Assistance to help with rent costs.

Check Your Minimum Wage →

Make sure you're being paid correctly to maximise your rent budget.

Rent Affordability Calculator

How much rent can I afford in Australia?

Related reading

Related Tools

From the Mate Network