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The 40x Rent Rule in NYC and How Guarantors Work

The 40x rent rule is a screen most New York landlords use: your annual income should be at least 40 times the monthly rent. If it is not, they usually ask for a guarantor who earns 80 times the rent. It is a custom, not a law, so the exact number depends on the landlord.

Sublet Buddy GuidesUpdated November 14, 20264 min read

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In This Guide 7 sections

The Arithmetic
Why 40 Times
How a Guarantor Works
If You Do Not Qualify
What Landlords Cannot Base a Decision On
Is a Sublet Easier to Qualify For
Questions

The Short Version

Rent x 40 is the income landlords commonly ask for. Income divided by 40 is the rent you qualify for.
A guarantor is commonly asked to earn rent x 80.
Neither number is in any law. Each landlord sets its own.
Roommates, a guarantor or a guarantor service are the usual ways around it.

The Arithmetic

Multiply the monthly rent by 40 to get the income a landlord is likely to ask for. Or divide your salary by 40 to see the rent you would pass at.

$1,800 a month: $1,800 x 40 = $72,000 a year.
$2,500 a month: $2,500 x 40 = $100,000.
$3,200 a month: $3,200 x 40 = $128,000.
$3,420 a month, StreetEasy’s median asking rent, October 2026, for a studio citywide: $3,420 x 40 = $136,800.
$4,875 a month, the same median for a Manhattan one-bedroom: $4,875 x 40 = $195,000.
Going the other way, an $85,000 salary divided by 40 is $2,125 a month.

Why 40 Times

Forty times the monthly rent is the same as saying rent should be no more than 30% of your pay before tax: 12 months of rent divided by 40 months of rent is 0.3. Landlords use it as a quick test of whether the rent is affordable.

Because it is a custom, it varies. Some landlords count a signed offer letter, some want pay stubs, some look at savings, and many also look at your credit report. Ask what they count before you apply.

How a Guarantor Works

A guarantor, sometimes called a co-signer, is a person who signs an agreement to pay the rent if you do not. It is usually a parent or relative. They do not live in the apartment, but they are legally on the hook for the lease, so it is a real favor to ask.

Landlords commonly want a guarantor to earn 80 times the monthly rent, and some want the guarantor to live in New York or a nearby state. For a $2,500 apartment that is $2,500 x 80 = $200,000 a year.

$1,800 a month: $1,800 x 80 = $144,000.
$3,200 a month: $3,200 x 80 = $256,000.

If You Do Not Qualify

Roommates: many landlords add the incomes of everyone on the lease together. Three people earning $60,000 each have $180,000, which passes at $180,000 / 40 = $4,500 a month. Ask, because some landlords test each person separately.
A personal guarantor, as above. Some landlords accept more than one.
A guarantor service: a company that acts as your guarantor for a fee. Not every landlord accepts one, and each service has its own approval rules and prices, so ask the landlord first which they take.
A lower rent: a room in a shared apartment instead of a studio changes the math quickly.
Savings: some landlords will consider a large bank balance in place of income. It is their choice.

A landlord cannot solve a weak application by taking extra money up front. New York limits the security deposit plus any advance rent to one month’s rent.

What Landlords Cannot Base a Decision On

An income screen is legal. Refusing someone because of race, religion, national origin, disability, family status, lawful source of income and other protected traits is not. If a landlord rejects you for a reason that sounds like one of those, the Attorney General’s tenants’ guide lists where to complain.

Is a Sublet Easier to Qualify For

Sometimes, but do not count on it. In a sublet you rent from the current tenant, and the landlord usually has to approve you. Requirements are set by whoever you rent from: some ask only for proof you can pay for the stay, others run the same screen as a lease. Ask at the start what they need.

Questions

Is the 40x rent rule a law in New York?

No. It is a screening custom used by most New York landlords. Each landlord decides its own income requirement and what counts as income.

How much do I need to earn for a $3,000 apartment in NYC?

By the usual rule, $3,000 x 40 = $120,000 a year, alone or combined with the other tenants on the lease if the landlord allows it. A guarantor would commonly need $3,000 x 80 = $240,000.

What is a guarantor on a NYC lease?

Someone who signs a promise to pay your rent if you do not. Landlords commonly ask a guarantor to earn 80 times the monthly rent.

Can roommates combine income for the 40x rule?

Often yes, but it is up to the landlord. Some add everyone’s income together and some test each tenant separately, so ask before you apply.

Still Have a Question?

Answers come only from our own guides, with the guides linked so you can read the detail.

Official Sources

Laws, prices and city rules change. Check these pages for the current version before you rely on any summary, including this one.

Link to This Guide

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This is general information, not legal advice. Rules differ by state, city, building and lease. Check your lease, get your landlord’s written approval before you sublet, and ask a local attorney about your situation.

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