What does 2.5 times the rent mean?

It means your gross monthly income must be at least two and a half times the monthly rent. For a $1,600 apartment that is $4,000 a month, or $48,000 a year. To work it out, multiply the rent by 2.5, or double the rent and add half of it.

At 2.5x, rent can take up to 40% of income before taxes. That makes it easier to pass than the standard 3x rule, which holds rent to 33.3%. The same $1,600 apartment needs $4,800 a month at 3x, so 2.5x lowers the bar by $800.

Landlords use 2.5x where rents are high compared with local wages, and it is the legal ceiling for most rentals in Portland, Oregon. The 2.5x rent calculator gives the figure for any rent.