How the guarantor income test works
NYC landlords usually judge income with a multiple of the monthly rent. You, the tenant, are typically expected to earn about 40 times the monthly rent per year. If you don't, the landlord may accept a guarantor: someone who signs a guaranty promising to pay if you don't. Because a guarantor has their own housing costs, landlords commonly ask for about 80 times the monthly rent. Each landlord sets its own number.
The math is simple:
- Guarantor income needed = monthly rent × the landlord's multiple (often 80).
- Highest rent a guarantor covers = guarantor's annual income ÷ the multiple.
- Your own test = monthly rent × 40. Combined income of all applicants usually counts.
Worked example
The apartment rents for $3,000 a month. At 40x you would need $120,000 a year. You earn $95,000, so you fall short and the landlord asks for a guarantor. At 80x the guarantor needs $240,000. Your parent earns $200,000, which covers rent up to $2,500 (200,000 ÷ 80). Your options: find an apartment at or below $2,500, add a co-applicant so the combined income reaches $120,000, find a different guarantor, or use an institutional guarantor.
| Monthly rent | Tenant at 40x | Guarantor at 80x | Guarantor at 90x |
|---|---|---|---|
| $2,000 | $80,000 | $160,000 | $180,000 |
| $2,500 | $100,000 | $200,000 | $225,000 |
| $3,000 | $120,000 | $240,000 | $270,000 |
| $3,500 | $140,000 | $280,000 | $315,000 |
| $4,000 | $160,000 | $320,000 | $360,000 |
| $5,000 | $200,000 | $400,000 | $450,000 |
What landlords look at besides income
Guarantors usually provide the same paperwork as an applicant: pay stubs, tax returns, bank or investment statements and a credit check. Many NYC landlords also want the guarantor to live in the tri-state area, because collecting from someone in another state through the courts is harder. Ask the landlord before you apply if your guarantor lives elsewhere. See apartment guarantors in NYC for the full list.
Alternatives if no one qualifies
- Institutional guarantors are companies that sign the guaranty for a fee. Their criteria and prices differ by company and by your profile, so the calculator lets you enter the fee from your quote rather than assume one. Read how institutional guarantors work.
- Co-applicants or co-signers whose income counts toward the 40x test.
- A lower rent. Use the rent affordability calculator to set a realistic budget.
- Not a bigger deposit or prepaid rent as a deposit. The one-month deposit cap means a landlord cannot ask for extra deposit money in place of a guarantor.
Voucher holders
If you pay with a Section 8, CityFHEPS, HASA or other public-assistance voucher, the NYC Human Rights Law bars most landlords and brokers from refusing to rent to you because of that source of income. Read source-of-income discrimination before you accept a rejection.