How Much Rent Can You Pay Per Month
Many factors come into play when you search for a rental apartment: location, facilities, size and most importantly budget. It is never too late to ask yourself how much rent you can afford per month. Your rental affordability depends on your income and other monthly expenses which you can calculate with the help of Rent Calculator. Once you agree, you have to pay the numbers so, it is important to figure out how much rent you can pay.
How Much of Your Earnings Should Go To Rent?
The rule of thumb is dividing your annual salary by 40 and you would get the figure for your rent. For example, if you are earning $60,000 annually, then you can afford to spend $1,500 in housing costs. Or if you want to calculate for short-term earnings, spend 30% of your pay for rent. This rule will leave you with enough cash for other expenses like utilities, food and transportation.
Prepare Yourself for Other Expenses
Save some extra cash other than your rent. If you have a bad credit history, expect to pay more for a security deposit. If you are not making enough to pay for landlords, you might also need a guarantor. A guarantor is a third party who will be responsible to help you with your rent in case you can’t make up your rental numbers. Hiring a guarantor means extra cash. Try to convince a family member or friend to be your guarantor, this way you can save guarantor fee. You also need to spend extra $10 - $30 per month as rental insurance. In short, keep in mind all the expenses before you sign the rental agreement.
Rent Prices in Major US Cities
How much will you pay for rent largely depends on your rental location? Paying $1,500 can take you a lot further in cities like Minneapolis than in Los Angeles and New York City. However, New York has one of the most competitive rental settings in the country. And landlords in NYC expect you to make more than 40x of your rent.
Below is the list of major US cities with average rent and the amount you’d have to be making each month.
| City | Avg. Monthly Rent | Min. Monthly Income |
|---|---|---|
| New York City | $2,131 | $7,100 |
| Los Angeles | $1,364 | $4,550 |
| Chicago | $1,078 | $3,600 |
| Washington D.C. | $1,340 | $4,500 |
| Seattle | $1,320 | $4,400 |
| Houston | $839 | $2,800 |
| Miami | $1,080 | $3,600 |
| Philadelphia | $973 | $3,250 |
| Atlanta | $1,030 | $3,450 |
| Denver | $1,060 | $3,550 |
You can also read the detailed article on How Much Rent Can I Afford in NYC.
