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