Reg 3X rent to income rule

[Tanim J B.]

Just want to check how you all do with 3x rule where rents are high.

for eg if rent is 2100 3x is 6300. Do you bend a little to take 2.5X?

[Nathan Gesner]

I would not adjust down. If rents are $2,500 a month, that means the market supports that price and there are people in the market capable of paying it.

I sometimes bend for a retired person with guaranteed income and no debt because they have more "available" income than a 35-year-old with a car payment and student loans and two kids to feed. Debt-to-income ratio should be a consideration.