1. What is the Scottish Government Rent Affordability Guideline?

The Scottish Government recommends that housing costs should not exceed 30% of a household's monthly income to maintain financial stability and affordability.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Rent \) — Affordable monthly rent payment
• \( Income \) — Total monthly household income before tax
• \( 0.3 \) — 30% affordability threshold

Explanation: This calculation ensures housing costs remain at a sustainable proportion of income.

3. Importance of Rent Affordability Calculation

Details: Keeping housing costs below 30% of income helps prevent financial stress and ensures funds remain available for other essential living expenses.

4. Using the Calculator

Tips: Enter your total monthly household income before tax. The calculator will show the maximum recommended rent payment according to Scottish Government guidelines.

5. Frequently Asked Questions (FAQ)

Q1: Is this 30% rule before or after tax?
A: The guideline typically refers to gross (before tax) income, though some variations use net income.

Q2: Does this include utilities and council tax?
A: The 30% guideline generally refers to base rent only. Additional housing costs should be considered separately.

Q3: What if my actual rent is higher than 30%?
A: You may be considered "rent burdened" and should budget carefully or consider more affordable housing options.

Q4: Are there exceptions to this rule?
A: In high-cost areas, some households may need to spend more, but this increases financial risk.

Q5: How does this compare to other affordability measures?
A: Some lenders use different ratios (like 28/36 rule), but 30% is a common standard for rental affordability.