You should spend no more than 30% of your monthly income on housing expenses.
Housing Cost ≤ 30% of Monthly Income
Housing costs can include: • 🏢 Rent • 💳 Home loan EMI • 🧾 Property tax • 🔧🏘️ Maintenance / society charges
Affordable Housing Cost = Monthly Income × 30%
✔️ Monthly Income: ₹40,000 ➡️ Max Housing Cost: ₹12,000 ✔️ Monthly Income: ₹60,000 ➡️ Max Housing Cost: ₹18,000 ✔️ Monthly Income: ₹1,00,000 ➡️ Max Housing Cost: ₹30,000
If your rent or EMI is within this limit, it’s considered financially safe.
✅ Helps avoid financial stress ✅ Keeps money for savings & emergencies ✅ Makes loan repayment manageable ✅ Used by banks, landlords & financial planners
❌ Doesn’t consider: • 💸 Lifestyle expenses • 🏦 Existing loans (car, personal loan, credit cards) • 🌆 City-wise cost of living (Delhi, Mumbai are expensive)
👉 In metro cities, many people stretch this to 35–40%, but risk increases.
✔️ The 30% rule is a safe starting point, not a strict law ✔️ Best for first-time buyers & tenants ✔️ Always check total expenses before deciding