3 Times Rent Calculator

Formula

To calculate the required income per tenant:

\[ TGRI = \frac{MR \times 3}{T} \]

Where:

$ TGRI $ is the 3 Times Rent (Required Gross Income Per Tenant) ($)
$ MR $ is the total monthly rent ($)
$ T $ is the number of tenants

3 Times Rent Definition

The 3 Times Rent rule is a guideline used by landlords to determine if a tenant's income is sufficient to afford the monthly rent. According to this rule, a tenant should earn at least three times the monthly rent amount. This calculation helps ensure that tenants have the financial stability to cover their rent payments comfortably.

Example Calculation 1

Let's assume the following values:

Monthly Rent (MR) = $1,200
Number of Tenants (T) = 2

Using the formula:

\[ TGRI = \frac{1,200 \times 3}{2} = 1,800.00 \]

The required gross income per tenant is $1,800.00.

Example Calculation 2

Let's assume the following values:

Monthly Rent (MR) = $800
Number of Tenants (T) = 3

Using the formula:

\[ TGRI = \frac{800 \times 3}{3} = 800.00 \]

The required gross income per tenant is $800.00.