How Much Rent Can You Afford

How Much Rent Can You Afford?

Bankers recommend spending not more than 25% of your monthly income on housing ( rent and utilities ). You may have to spend more, but make sure you have enough to cover food, and other bills, and some for fun.

Rent  Guidelines

& General Home Budget

Category      /     Guideline

Rent ………………….  25 – 35%

Food………………….   8 – 15%

Health Care …………   5 – 7 %

Insurance/Pension….   7 – 9 %

Clothing ……………..   6 – 8%

Entertainment ………   5 – 9%

General Savings …….  6 – 10%

Allocation Sub-Total .. 62 – 88%

Auto ……………………. 12 – 15%

Allocation Total …….   74 – 93%

The above results may vary depending on your expenses. 

 

How Much Rent Can You Afford

General Calculation Example:

Your Annual Income:      $50,000

Divided by 12 months:    $4,167 per month

Multiplied by 25%:          $1,042  rent/mth

Multiplied by 35%:          $1,459  rent/mth