Authorization

Here's exactly how to figure out how much rent you can afford

Here's exactly how to figure out how much rent you can afford
AP Photo/Paul Sakuma, File
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.



How much rent you can afford is equal to 30% of your annual gross income, experts say.




But if you want to build more wealth, try limiting housing costs to 30% of your take-home pay.




We calculated how much rent people can afford after federal taxes and a pretax 401(k) contribution of 10% at ten different income levels, from $50,000 to $200,000.



Most Americans blow their budget on three things: Housing, transportation, and food.
The typical US renter spends about 30% of their gross income on rent, according to the latest data from the US Census Bureau. Meanwhile, residents in some high cost-of-living cities, including Los Angeles, San Francisco, and New York, spend more than 37% of their income on rent each month, according to a Zillow report.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Март 2019    »
ПнВтСрЧтПтСбВс
 123
45678910
11121314151617
18192021222324
25262728293031