Example: Jacinda and Alex are applying for an apartment together! Jacinda earns $50,000/year and Alex earns $35,000/year. Their combined total yearly income is $85,000.
$85,000 ¸40 = $2,125. Their budget is $2,125 combined monthly rent. If they’re going in halfsies—each of them would be responsible for $1,062.50 each month.
Alternately: you can take the price of an apartment and multiple it by 40 to see what income you will need to prove in order to qualify.
Example: Jess has found the perfect UWS apartment for $2,800/month. They will need to meet the 40x income requirement of $112,000/year either by themselves or by utilizing a guarantor.