40-gallon gas hot water heaters serve smaller households (1-3 people) and installs where the 50-gallon won't fit dimensionally. The 40-gallon capacity is the secondary residential gas tank size after 50-gallon, accounting for about 25% of US gas tank installs.
Top 40-gallon gas picks
Best overall: Rheem Performance Platinum 40-gal Gas
40,000 BTU, 70-gal FHR, UEF 0.64, 12-year warranty. About $749 unit, $1,500 installed.
Best plumber-installed: Bradford White RG240T6N 40-gal
40K BTU, 73-gal FHR, UEF 0.62, 6-year warranty. ICON gas control runs through power outages. About $1,950 plumber-installed.
Best budget: Rheem Fury 40-gal (82V40-2)
40K BTU, 6-year warranty, UEF 0.58. About $1,250 installed.
Best safety (garage installs): Bradford White Defender 40-gal
FVIR safety system targets garage installs where flammable vapors may be present. About $1,750 plumber-installed.
Best AO Smith / Lowe's: AO Smith Conservationist GCR-40
40K BTU, 70-gal FHR, UEF 0.62, 6-year warranty. About $1,350 installed.
When 40 is right vs when to upsize to 50
40-gallon is the right choice when:
- 1-2 person household with sequential demand
- Closet height restriction (40-gallon: 52" tall vs 50-gallon: 60" tall)
- Mobile home / manufactured home (MH-specific 40-gallon units common)
- Single-bathroom home regardless of household size
50-gallon is right instead when:
- 3+ person household with overlapping or near-overlapping demand
- Hot-water-intensive appliances (dishwasher, washing machine running hot wash)
- Growing family (kids who'll become teenage shower-takers)
Install checks before ordering
- Measure closet height — 40-gallon needs ~58" interior height (52" tank + 6" venting overhead)
- Verify gas line is 1/2" or larger (sufficient for 40K BTU)
- Verify B-vent connection diameter matches new unit (most modern 40-gallon units use 3")
- 120V outlet within 6 feet for electronic ignition
- Drain pan + drain line if install is above living space
- Expansion tank requirement (check if main supply has check valve or PRV)
Install cost
- Like-for-like 40-gallon atmospheric replacement: $1,250-$1,500
- Atmospheric → power-vent conversion: $1,700-$2,300
- Atmospheric → condensing conversion: $2,300-$2,900
- Emergency same-day install: +$300-$700