FAQs
The traditional rule of thumb is that you should try to spend no more than 30% of your gross income on rent. According to this rule, you should be making $5,000/month to afford a $1,500 apartment. With a 40-hour workweek, this works out to $28.85/hour.
How much do you need to make to afford $2 500 rent? ›
If you make $75,000 a year, you can afford to spend $1,875 a month on rent. If you make $100,000 a year, you can afford to spend $2,500 a month on rent.
Is the 30 rule outdated? ›
1. The 30% Rule Is Outdated. The 30% Rule has roots in 1969 public housing regulations, which capped public housing rent at 25% of a tenant's annual income (it inched up to 30% in the early 1980s).
How much should you make to afford $1200 rent? ›
The 30% Rule
Let's consider an example. Say your monthly income is $4,000. If you're using the 30% rule to determine how much you should pay in rent, multiply $4,000 by 0.3 (30%). The maximum amount of money you should spend on housing every month is $1,200 according to this budgeting strategy.
Is $1,500 a month enough to live? ›
A couple can live comfortably for under $1,500 per month, including rent, utilities, dining out and incidental expenses.
What is the 50 20 30 rule? ›
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
Can I afford a house making $2000 a month? ›
Mandy Phillips, a mortgage loan originator at Vista Home Loans, ran the numbers with the average property taxes and homeowners' insurance for California to find that buyers with a $2,000 budget could afford a $301,000 purchase price. But purchasing power changes a bit when looking at properties that require an HOA fee.
Is $1,500 rent too much? ›
According to the 30% rule, a person earning $5,000 gross per month could reasonably afford to spend $1,500 per month on rent. However, it's important to remember that this is only a guideline.
How much should I spend on rent if I make 27 an hour? ›
One popular guideline is the 30% rent rule, which says to spend around 30% of your gross income on rent. So if you earn $3,200 per month before taxes, you could spend about $960 per month on rent. This is a solid guideline, but it's not one-size-fits-all advice.
How much of your paycheck should go to rent? ›
It is recommended that you spend 30% of your monthly income on rent at maximum, and to consider all the factors involved in your budget, including additional rental costs like renters insurance or your initial security deposit.
However, in today's economy, more than half of American renters spend more than that, and not by choice, according to research from The Joint Center for Housing Studies at Harvard University. Unfortunately, limiting the amount you spend on rent to only 30% of your total income is unrealistic in many cases.
What is the 60 20 20 rule? ›
If you have a large amount of debt that you need to pay off, you can modify your percentage-based budget and follow the 60/20/20 rule. Put 60% of your income towards your needs (including debts), 20% towards your wants, and 20% towards your savings.
How much should my rent be if I make $3,000 a month? ›
According to this rule, a person or household should not spend more than 3 times their gross monthly income on rent. For example, if a person earns $3,000 per month before taxes, they should not pay more than $900 in rent.
Is $4000 a month good for one person? ›
As I mentioned in the intro, making $4k a month is a massive amount of money. For many people, it's enough to match or surpass their day job, which can be a life-changing event!
How much should I make to afford $1500 rent? ›
The traditional rule of thumb is that you should try to spend no more than 30% of your gross income on rent. According to this rule, you should be making $5,000/month to afford a $1,500 apartment. With a 40-hour workweek, this works out to $28.85/hour.
Is $1500 rent too much? ›
According to the 30% rule, a person earning $5,000 gross per month could reasonably afford to spend $1,500 per month on rent. However, it's important to remember that this is only a guideline.
How much is $1,500 a month annually? ›
$1,500 monthly is how much per year? If you make $1,500 per month, your Yearly salary would be $18,000.
How much rent can I afford with a 65k salary? ›
How Much Rent Can I Afford – Chart
Your Annual Salary ($) | Monthly Rent ($) |
---|
65,000 | 1,625.00 |
70,000 | 1,750.00 |
70,000 | 1,750.00 |
72,000 | 1,800.00 |
7 more rowsJan 5, 2023
How much rent can I afford making 70k? ›
What percentage of your income should go to rent?
Annual gross income | Maximum monthly rent |
---|
$50,000 | $1,250 |
$60,000 | $1,500 |
$70,000 | $1,750 |
$80,000 | $2,000 |
5 more rowsAug 9, 2023