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The short answer
Many New York City landlords ask that your annual income be at least 40 times the monthly rent, and often ask a guarantor to show more. The rule is landlord practice, not law. Since 11 June 2025 the FARE Act stops a landlord's broker charging you a fee, and every fee you must pay has to be disclosed in writing before you sign.
What the 40x rule means
The 40x rule is a screening convention widely used by New York City landlords and management companies: your gross annual income should be at least 40 times one month's rent. It is not set by any statute; each landlord decides whether to apply it and how strictly. Guarantors are commonly asked to show a higher multiple, often quoted as 80 times the rent.
Worked example: the arithmetic
Example only. A one-bedroom at $3,000 a month needs $3,000 × 40 = $120,000 of annual income under the rule. A Nigerian nurse starting on $95,000 falls short by $25,000. Under an 80x guarantor rule, a guarantor would need $3,000 × 80 = $240,000. If she looks at flats at $2,375, the 40x figure becomes $95,000, which she meets. Working backwards, divide your annual income by 40 to find the rent the rule allows: $95,000 ÷ 40 = $2,375.
Guarantors and the newcomer problem
Many landlords want a guarantor who lives in New York or the tri-state area, with US credit. Most new arrivals have no such person. The options are:
- A paid guarantor service: a company acts as your guarantor for a fee you pay, usually a share of a year's rent and usually non-refundable. Ask the landlord which services it accepts.
- Prepaid rent: some landlords accept several months upfront. Get the terms in the lease.
- Savings: some will accept large savings in place of income.
- An employer letter: relocation packages sometimes include a letter or housing help; ask HR.
The FARE Act: broker fees since June 2025
New York City's Fairness in Apartment Rental Expenses Act took effect on 11 June 2025. According to the city's Department of Consumer and Worker Protection (DCWP):
- A landlord's agent, including a listing agent, cannot charge you a broker fee.
- You cannot be required to hire or pay a broker to rent an apartment, even if a broker says you must.
- You may still choose to hire your own broker, and then you pay that broker.
- Landlords may still charge for background and credit checks under state Real Property Law section 238-a(1).
- Every fee you must pay has to be shown clearly in the listing, and you must get an itemised written disclosure of all fees, which you sign before the lease. The landlord keeps a signed copy for three years and gives you one.
What to have ready
Good New York flats go fast, so arrive at viewings with a complete pack: passport and visa or Green Card, offer letter or pay slips, recent bank statements, a reference from a previous landlord and, if using one, your guarantor service approval. If you do not yet have an SSN, ask how the landlord screens applicants without one. For the wider picture see renting with no credit history, and start building credit early (building a US credit score).
What to check first
- Divide your annual income by 40 to set your rent ceiling before you search.
- Ask whether the landlord accepts a guarantor service and which one.
- Read the written fee disclosure before signing; question any fee not on it.
- Never pay a fee to the landlord's broker; under the FARE Act it is the landlord's cost.
- Pay by a traceable method and get receipts.
Room shares, sublets and other ways in
Many new arrivals do not start with their own lease. Taking a room in a shared flat, or a sublet from an existing tenant, can avoid the 40x test for your first months because the leaseholder has already passed screening. The trade-off is weaker protection: you rely on the leaseholder, the main lease may restrict sublets, and the landlord may not know you are there. If you take this route, get a written agreement with the leaseholder covering rent, deposit, notice and how the deposit is returned, and pay by a traceable method.
Combining incomes
Some landlords let roommates combine incomes to meet the 40x rule; others want each applicant to meet a share. Example only: two flatmates earning $70,000 and $60,000 have $130,000 together, which meets 40x on a $3,250 rent ($3,250 × 40 = $130,000). Ask the landlord how it treats joint applications before you apply.
Where Pryme fits
New York move-in costs can be large. If part of the money is in Nigeria, a Pryme Personal Account lets you hold and convert NGN and USD with Swap, seeing the rate and fee first. You can share a verifiable statement, made through Pryme's partnership with VerifyDoc.ai, which a landlord can check is genuine and unaltered; whether it meets their rules is their call.
Questions people ask
Is the 40x rent rule a law in New York?
No. It is a screening practice many landlords use. Each landlord sets its own income rule.
Do I have to pay a broker fee in NYC now?
Not to a landlord's broker. Under the FARE Act, since 11 June 2025, a landlord's agent cannot charge tenants a broker fee. If you hire your own broker, you pay them.
What if I do not meet the 40x rule?
Look at lower rents, use a guarantor or guarantor service, offer prepaid rent or show savings, if the landlord accepts them.
Can a New York landlord charge for a credit check?
Yes, landlords may still charge for background and credit checks under state law, and must disclose fees in writing.
Sources
- Fairness in Apartment Rental Expenses (FARE) Act FAQ, NYC Department of Consumer and Worker Protection (updated 2 Jun 2026) · accessed Oct 2026
- Building credit: checklist for consumers with no credit history, Consumer Financial Protection Bureau · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.