Rent Affordability Glossary

The proportion of your income that goes toward housing costs. A common affordability ratio is 30% of gross income for rent.

Example: If you earn $4,000/month, an affordability ratio of 30% means you can afford up to $1,200/month in rent.

Housing designated for individuals or families with low to moderate income, typically subsidized by government programs.

Example: An affordable housing unit might charge $800/month in an area where market rate is $1,500/month.

Additional features or services provided by a rental property, such as a gym, pool, parking, or laundry facilities.

Example: An apartment complex offers amenities including a fitness center, rooftop terrace, and pet washing station.

The yearly interest rate charged on borrowed money. While less common in traditional renting, APR is relevant when considering rent-to-own agreements.

A self-contained housing unit that occupies part of a building with multiple units.

A non-refundable fee charged to process a rental application, typically covering background and credit checks.

Example: An apartment complex charges a $50 application fee per adult applicant.

A review of an applicant's criminal history and eviction records conducted during tenant screening.

Official records from your bank showing account balances and transactions, requested as proof of financial stability.

The fundamental rental amount before additional charges like utilities or parking fees.

Example: Base rent is $1,200, but with parking ($100) and pet rent ($50), total is $1,350.

Housing units rented at prices below the prevailing market rate, often through affordable housing programs.

A housing unit within a building where individuals own their specific unit but share ownership of common areas.

A person who agrees to be legally responsible for rent payments if the primary tenant fails to pay.

Example: A recent college graduate might need a parent to co-sign their first apartment lease.

A household that spends more than 30% of its gross income on housing costs.

A numerical representation of creditworthiness, typically ranging from 300 to 850.

Example: A credit score of 700+ is generally considered good for rental applications.

The percentage of gross monthly income that goes toward debt payments, including rent and loans.

Example: If you earn $5,000/month and have $1,500 in debt payments, your DTI is 30%.

Failure to meet lease terms, most commonly by not paying rent on time.

A building divided into two separate living units, either side-by-side or stacked vertically.

A penalty charged when a tenant breaks a lease before the agreed end date.

Example: An early termination fee might equal two months' rent.

An animal providing therapeutic benefit to someone with a mental or emotional disability.

The legal process by which a landlord removes a tenant from a rental property.

Federal legislation prohibiting discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability.

The estimated amount that a property would rent for in the current market, as determined by HUD.

The initial month's rent payment required before or upon moving in.

A rental agreement for a specific period with set start and end dates.

Example: A 12-month lease from January 1 to December 31 at $1,200/month.

A short period after the rent due date during which payment can be made without late fees.

Example: Rent is due on the 1st, but with a 5-day grace period, late fees don't apply until the 6th.

Your total income before taxes and deductions.

Example: If you earn $60,000 annually, your gross monthly income is $5,000.

The legal standard that rental properties must be safe, sanitary, and fit for human occupancy.

The combined income of all people living in a residence.

The U.S. federal agency that oversees national housing policy and administers housing assistance programs.

Rental units with eligibility requirements based on household income levels.

A minimum income threshold that applicants must meet to qualify for a rental.

Example: For a $1,500/month apartment with a 3x requirement, you need to earn at least $4,500/month.

A washer and dryer located inside the individual apartment unit.

A lease provision where each tenant is individually responsible for the full rent amount.

Example: Three roommates sign a lease. If one moves out, the remaining two are responsible for the full rent.

The property owner who rents out residential or commercial space to tenants.

A prepayment of the final month's rent collected at move-in.

A charge imposed when rent is paid after the due date and grace period.

Example: A $50 late fee or 5% of monthly rent, whichever is greater.

A legally binding contract between landlord and tenant outlining the terms of the rental.

A federal program providing tax incentives to developers who create affordable housing for low-income households.

The rental price determined by current supply and demand in the local market without subsidies.

The middle value in a range of rental prices for a specific area or property type.

A rental agreement that automatically renews each month without a fixed end date.

All upfront expenses required to secure a rental, including first month's rent and security deposit.

Example: For a $1,200/month apartment, move-in costs might be $3,600.

A residential building designed to house multiple separate households.

Your income after taxes and deductions. Also known as take-home pay.

Deterioration that occurs naturally over time through ordinary use.

Written notification from either tenant or landlord indicating intent to end the tenancy.

The maximum number of people allowed to live in a rental unit based on square footage and local codes.

A refundable or non-refundable fee charged to tenants with pets to cover potential damage.

An additional monthly fee charged to tenants with pets, added to the regular rent payment.

Example: $1,200 base rent + $50 pet rent = $1,300 total monthly rent.

Rent calculated for a partial month when moving in or out mid-month.

Example: Moving in on the 15th of a 30-day month with $1,200 rent = $600 prorated rent.

A professional who manages rental properties on behalf of the owner.

Modifications or exceptions that landlords must provide to tenants with disabilities under fair housing laws.

The percentage of household income spent on rent. Above 30% is considered cost-burdened.

Government regulations that limit how much landlords can charge for rent and restrict rent increases.

Insurance coverage protecting tenants' personal belongings and providing liability protection.

A federal housing assistance program helping low-income families afford housing by subsidizing rent.

A refundable amount paid at move-in to protect landlords against damages or unpaid rent. As of 2025, deposit limits vary by state—California caps deposits at one month's rent (AB 12, effective July 2024), while other states may allow 1-2 months' rent. Deposits are typically returned within 14-60 days after move-out, minus legitimate deductions for damages beyond normal wear and tear.

Example: In California, a $1,800/month apartment requires maximum $1,800 security deposit. In Texas, landlords may request up to 2 months' rent ($3,600).

An animal specifically trained to perform tasks for a person with a disability.

Spending more than 50% of gross income on housing costs.

A small apartment with a single main room combining living, sleeping, and cooking areas, plus a separate bathroom.

An arrangement where the original tenant rents out the property to another person while remaining responsible for the lease.

A person who rents and occupies property owned by another person.

A guideline suggesting that rent should not exceed 30% of gross monthly income.

Example: With a monthly income of $4,000, aim for rent no higher than $1,200.

A requirement that applicants earn at least three times the monthly rent in gross income.

Example: For a $1,500/month apartment, you'd need to earn at least $4,500/month.

A multi-story home attached to similar homes in a row, sharing side walls.

Essential services including electricity, gas, water, sewer, and trash collection.

A rental arrangement where the landlord pays for some or all utilities as part of the rent.

A physical inspection of the rental property conducted at move-in and move-out to document condition.

An apartment building without an elevator, requiring residents to use stairs.