The guideline commonly used in New York City rental applications stipulates that a prospective tenant’s annual gross income should be at least 40 times the monthly rent. For example, an applicant seeking an apartment with a monthly rent of $2,000 would ideally need an annual income of $80,000 to meet this criterion. This metric serves as a preliminary assessment of an applicant’s ability to afford the rental unit.
This financial benchmark assists landlords in mitigating risk associated with tenant default. By setting an income threshold, property owners aim to secure tenants who are likely to consistently meet their rent obligations. The use of such income requirements has a long history in the city’s competitive rental market, reflecting a desire to balance access to housing with financial stability for both tenants and landlords.