Maximum Rent Calculator

Formula

The formula to calculate the maximum rent (Rmax) is:

\[ \text{Rmax} = \text{GI} \times \text{RTI} \]

Where:

$\text{Rmax}$ is the maximum rent ($)
$\text{GI}$ is the combined gross income of tenants ($)
$\text{RTI}$ is the maximum rent-to-income ratio allowed by law

What is Maximum Rent?

Maximum rent is the highest amount of rent that tenants can afford to pay based on their combined gross income and the maximum rent-to-income ratio allowed by law. This calculation helps ensure that tenants do not spend more than a reasonable portion of their income on rent.

Example Calculation

Let's assume the following values:

Combined Gross Income of Tenants (GI) = $100,000
Maximum Rent-to-Income Ratio (RTI) = 30%

Using the formula to calculate the maximum rent (Rmax):

\[ \text{Rmax} = \text{GI} \times \text{RTI} = 100,000 \times 0.30 = 30,000 \text{ dollars} \]

The maximum rent (Rmax) is $30,000 per year.