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I think that's what it *should* be if you want to be financially healthy but obviously most people can't make that work because of extreme cost of living expenses. The reason that benchmark is helpful though is that it could sway you to consider whether or not you could find something higher paying or find a way to reduce your rent to get closer to a balanced budget.
In a perfect world, this will definitely be the case. But the government, and the housing market really make this an impossibility. My mortgage is closer to 45% of our take-home and there's absolutely no way to change that right now.
I think the 25% rule is more of a guideline than a strict requirement. In expensive cities, it’s normal to spend more, so don’t be hard on yourself if you’re outside that range. What matters is making sure the rest of your budget works and you’re not losing peace of mind just to follow a formula.