Maximum Rent Calculator

Calculate Maximum Rent



Formula

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

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

Where:

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:

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.