Example 1: rent-to-income share from the warm rent
| Rent basis | Warm (incl. running costs) |
|---|---|
| Monthly household net income | €2,500.00 |
| Warm rent | €750.00 |
| Target share | 30% |
| Rent-to-income share | 30% |
|---|---|
| Income after rent | €1,750.00 |
| Possible rent at 30% | €750.00 |
| Income after that rent | €1,750.00 |
€750.00 out of €2,500.00 is a rent-to-income share of 750 / 2,500 = 30%. €1,750.00 is left each month. A 30% target allows the same €750.00 rent here. The 30% figure is a labelled rule of thumb and an example assumption, not a verdict on what you can afford.