Income Must Be Three Times the Monthly Rent

[Michael Stole]

I am reading this great book "Tenant Screening: The Ultimate Guide" on biggerpocket.

It says income must be three times the monthly rent. I am wondering if it is before or after tax.

[Bryan H.]

I would guess this 3x income came from the HUD affordable housing guidelines.

"AFFORDABLE HOUSING: In general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define affordable housing based on other, locally determined criteria, and that this definition is intended solely as an approximate guideline or general rule of thumb."

ANNUAL INCOME: Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes."

HUD Glossary

According to this it's pre-tax.