The general recommendation is to spend no more than 30% of your gross monthly income on rent. This is a widely accepted guideline known as the "30% rule," which aims to balance housing costs with other expenses and savings goals. However, this rule may not be feasible for everyone depending on income levels, location, and other financial factors. Some experts also suggest that spending between 20-25% might be more manageable, especially if saving or other expenses are a priority. Additionally, essential expenses including rent ideally should not exceed 50% of take-home pay overall.

Summary:

• Aim for 30% or less of gross income on rent.
• 20-25% might be better depending on financial goals.
• Total essential expenses including rent should ideally be under 50% of take-home pay.
• The rule varies based on location and income.

This provides a balanced approach to budgeting for rent while considering other financial priorities.