Gross Income

Gross income is what you earn before anything is taken out: income tax, Social Security and Medicare, health insurance premiums and retirement contributions. On a pay stub it is the top-line figure. On an offer letter it is the stated salary or hourly wage.

Gross income is the number the 3x rent rule normally uses. A landlord asking for 3 times a $1,500 rent wants to see $4,500 a month in gross pay, which is a $54,000 salary. The 3x rent calculator works in gross figures for that reason.

It is the standard because it is easy to verify and comparable between applicants. Two people with the same salary can have very different take-home pay depending on their tax withholding and benefits, and a landlord has no simple way to check those choices.