Affordable Housing

Affordable housing, in the federal definition, is housing that costs a household no more than 30% of its gross income, utilities included. Households paying more than 30% are called cost burdened, and those paying more than 50% are severely cost burdened.

The 3x rent rule is a landlord's version of the same idea, set a little looser. Earning exactly 3 times the rent puts rent at 33.3% of gross income, just past the federal line. The 40x rule used in New York City lands on 30% exactly.

A 2x requirement allows rent to reach 50% of income, the threshold for a severe burden. The comparison is laid out in the 30% rule guide.