What is rental affordability?

Rental affordability is an indication of how much you can afford to spend on rent, based on gross your annual income. The benchmark used by most Letting Agents for Rental affordability is approximately 30% of your gross monthly income.

However if you want a more accurate view then looking at the net monthly income percentage is a better way to manage your finances. For this using 35-45% of your take-home pay as a guide means you can see the higher end of the spectrum for rental costs.

At Canopy we also take into account your savings. Any additional income you verify as savings will reflect 100% on affordability as you will only be presenting the savings amount you would like to be taken into account.