How much monthly income for rent

Apartment Guide. Board of Governors of the Federal Reserve System. Households in - May Capital One. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile.

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Develop and improve products. List of Partners vendors. Part of. Debt Rules of Thumb. Savings Rules of Thumb. Retirement Rules of Thumb. Investing Rules of Thumb. Credit Rules of Thumb. Credit Card Rules of Thumb. Housing Rules of Thumb. So, in this scenario, your rent-to-income ratio would equal With this in mind, you may want to consider renting a less expensive apartment or start thinking about ways to lower your other expenses.

The following is some common sense advice, along with some other factors to consider when figuring out your living expenses. As a general rule of thumb, allocating 30 percent of your net income towards rent is a good place to start. According to government studies posted on Census. When calculating your income-to-rent ratio, keep in mind that you should be using your total household income. According to this popular budgeting rule, 50 percent of your income goes to essentials, 30 percent goes to non-essential, personal expenses, and the remaining 20 percent goes to savings and investments.

One of the biggest shocks of moving out on your own is how high the cost of moving and filling a home can be. From kitchen utensils to lightbulbs and everything in between, it can be pricey to make your space perfect. For the most part, furniture falls under the 30 percent of personal, non-essential expenses. According to consumer. If your budget is slightly out of reach for your dream apartment, try to nix unnecessary costs to see if you can make it work.

Look for ways to cut down on utilities, insurance, groceries, and rent. Cut the cord on TV and mobile services that may not serve you and your budget anymore. Consider swapping out your light bulbs for eco-friendly and energy-efficient light bulbs to cut down your electric bill. Insurance : Instead of paying monthly renters insurance rates, save a fraction of the cost by paying your yearly cost in full. If you have a roommate, ask to share a policy together at a premium rate. Here are a few ways to figure that out.

If you have a lot of expenses that fall under the needs category, your budget for rent could be pretty tight. Consider this example:. Where you live affects everything from your commute to your workout routine. Factor in additional costs or savings you might incur depending on your rental choice.

Living further from the city center, for example, is often less expensive. But you could spend hundreds each month on transportation costs to commute to and from work and social engagements. Some rentals include utilities like gas and water, have an on-site gym or a washer and dryer in-unit.

Factor in those perks when comparing the cost of rentals. And in-unit laundry equals savings on time and money versus coin laundry or trips to the laundromat. Scale back your package to shave hundreds off your cable bill. Or cut the cord completely and snag a digital antenna on the cheap to access local channels.

Insurance : Compare car insurance rates to find the best deal. Groceries : Get in the habit of planning your meals and use coupons to maximize your grocery budget.