The 40x rule. How NYC landlords read your income.

Every NYC apartment search starts with one number.

Not the rent.
Not the neighborhood.
Your income, times 40.

It is called the 40x rule. You will run into it at most buildings in this city, and most renters only find out when an application comes back with a “no.”

Here is how it works, and the math at today’s rents.

What is the 40x rule?

Your yearly income should be at least 40 times the monthly rent.

That is it. Take the rent, multiply by 40, and that is the salary a landlord wants to see.

To be clear, this is not a law. It is common landlord practice. A landlord can set a different bar, but 40x is the one you will run into again and again.

How much do you need to make to rent in NYC?

The median asking rent in NYC hit $4,150 in September.

$4,150 x 40 = $166,000 a year.

By borough, it looks like this:

1. Manhattan. $4,995 x 40 = $199,800.
2. Brooklyn. $3,945 x 40 = $157,800.
3. Queens. $3,400 x 40 = $136,000.

Those are medians. Half the apartments ask less, half ask more. But it shows you why so many people get stuck.

How do I find my max rent?

Flip the math. Divide your yearly income by 40.

Earn $100,000? Your 40x max is $2,500 a month.
Earn $150,000? It is $3,750.

Do this before you open a single listing. It saves you from touring places you will never get approved for.

How do landlords read your income?

Here is how I see it. A landlord is not judging you. They are trying to answer one question: will this person pay every month?

The 40x number is their shortcut. In practice, that usually means your pay before taxes.

To check it, a landlord usually asks for some mix of pay stubs, an offer letter, tax returns or bank statements. If you are self-employed or freelance, expect more paperwork, not less.

A few things I would tell any friend applying right now:

1. Know your number first. Rent x 40. If you are under it, plan for a guarantor before you apply, not after.
2. Ask about roommates. Some landlords add incomes together. Some want each person to qualify on their own. Ask before you pay any fee.
3. Have your proof ready. The best apartments move fast. The renter with documents in hand usually wins.
4. Don’t stretch the truth. A fake pay stub is fraud. It is not worth an apartment.

What 40x looks like on Nessoo

On Nessoo, renters verify their income and identity once, upfront.

The median verified renter on Nessoo earns 52x their monthly rent.

That is well above the 40x bar most landlords set.

And it tells you something. Plenty of renters qualify on paper. What slows them down is proving it, again and again, to every new landlord.

Prove it once.
Know your number.
Then go find the apartment.

“Know your number before you fall in love with an apartment.”

About Gabe Einhorn

Co-founder of Nessoo, the verify-first rental marketplace in New York. He writes every Nessoo Report. nessoo.com