The 40× rule, explained

If you have applied for an apartment in New York, you have hit it: the landlord wants your annual income to be at least forty times the monthly rent. A $3,000 apartment means $120,000 a year. A $4,500 apartment means $180,000.

Where it comes from

It is not a law. It is a rule of thumb that became a standard because it is easy to check and roughly maps to "rent is under 30% of gross income." Forty times monthly rent is 3.33 times annual rent, so rent lands at about 30% of income. Landlords like it because it is a single number and it correlates with people paying on time.

How it is calculated

Gross income, before tax. Base salary counts everywhere. Bonuses, commissions, and freelance income count with some landlords and not others, and usually need two years of history. Savings do not count as income, though some landlords will accept a large balance instead.

If you don't clear it

You have four real options.

1. A guarantor. Someone, usually a parent, who earns about 80× the rent and signs to cover it. Most landlords accept guarantors who live in the tri-state area; many accept out-of-state now.
2. Roommates. Combined household income counts. Two people at $70,000 clear a $3,400 apartment together.
3. An institutional guarantor. Services like Insurent or TheGuarantors charge a fee, typically 70 to 110 percent of one month's rent, and stand in as your guarantor.
4. Prepaid rent. Some landlords take several months up front. This is restricted in New York State since 2019, which caps deposits at one month, so it is less common than it was.

What Nessoo does with it

Homey checks the 40× rule, plus each landlord's own threshold, against your verified income before you request a unit. You see what you qualify for. If you are short, it tells you by how much, and whether a roommate or guarantor closes the gap. Your household's incomes combine once each person verifies.