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How Much Should I Spend On Rent? Reward $2
Created by sunrise, 1457 days ago, 1556 views

How Much of Your Income Should You Spend on Housing?
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Zuikoz1457 days ago

Rule of thumb: Spend a fixed percentage of your income on housing. The general recommendation is to spend about 30% of your gross monthly income (before taxes) on rent. Therefore, if you'll be making $4,000 per month, then your rent should be $4,000 x 0.3, or about $1,200.

source: first result on google

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yogisugandi251457 days ago

This calculator shows rentals that fit your budget. Savings, debt and other expenses could impact the amount you want to spend on rent each month. Input your net (after tax) income and the calculator will display rentals up to 40% of your estimated gross income. Property managers typically use gross income to qualify applicants, so the tool assumes your net income is taxed at 25%. Actual tax rates vary.

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Aravi1457 days ago

Hi @sunrise

It depend on your income and your requirement for a home and your locality.

For a low income people:- Rent expenditure = (gross income - food expense -travel expense - medical expense) * 60% max.
** Because they can't get a house.

For average income people:- Rent expenditure = (gross income - food expense -travel expense - medical expense) * 40% max.

For bachelors work group :- Rent expenditure = (gross income - food expense -travel expense - medical expense) * 20% max.
** It is low because they expected to share their rooms with other room meets. They expected to send rest of the money to their home.


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sanbooly1457 days ago

in a short word,
spend 75~80% of total monthly income in your house requirements at all.
and the rest make them in saving account or for improving the House/family.

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Walphai1457 days ago

Try to get the cheapest house that is also as close to your workplace/school as possible. Avoid renting a place that is far from work because even if you have a car the time you spend on the commute everyday is wasted and makes you lose money in the long run.

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nuklin1456 days ago

There's no specific percentage for accommodation, in fact my accommodation is just 10% of my gross. The thing is: you need to find a way to maximize profit and savings as well. In doing this, you need to plan your accommodation along side other factors as utilities, transport, feeding, dependants, wardrop and miscellaneous. The key is to do a cost benefit analysis and the rules are:

1. stay close to your business or work place only if the summed up benefits - accumulation, transport and other necessities outweigh the summed up benefits else where otherwise, get a beautiful place that is not necessarily close, where you can have more benefits and more savings. For instance, I save more than 100,000 every year on housing majorly and some basics eventhough I stay about 19kms from my office.

Here is the take, I have easy access to my daily needs at cheap rates, the road to my office is smooth, my apartment is superb. If I rent the same apartment with same facilities 2 to 3 kms to my office, I will definitely pays 3times my rentage. Based on the nature of that environment, my daily requirements are less easily assessible and at high cost. You definitely need to plan and do a survey and possible projection on all other factors, not just accomodation before taking a leap. Good luck!

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cindyp1456 days ago

You just need to add up your monthly bills, Doctor, Insurances, Etc. Then cost of your food, clothing, toiletries. Then you'll have your answer, what's left after subtracting all costs, there's your rent! Good luck unfortunately rental's have become costly, they need to lower the cost of rental's cause the average person can find it to costly.

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wim1456 days ago

Make sure that you are comfortable with your monthly rent payment. I suggests that you not spend more than a quarter of your monthly income on rent. For example, if you earn $4,000 a month, you should not spend more than $1,000 a month on your rent. When creating your budget don’t forget to add in utilities such as electric, water, television, and internet. You don’t want to suffer through the cold of winter or be bored with no TV or internet.
There are 6 steps to creating a budget: set your goals, know your net income, make a plan, track your spending, personalize and create your budget, and have a monthly check-in. Personalizing and creating a budget can be broke down into 4 steps as well: recording dialing spending, plan for the all of the monthly expenses, look for ways to spend less, and find ways to boost your income. Having a budget can help you manage your expenses and help you get where you want to be.
If your rent payment cannot fit in 25 to 35 percent, you can always look into moving some of your other expenses around. For example, if you don’t have a car payment you may be able to spend more on your rent. When you add together all of your housing expenses, food, and transportation it should take up about 60 percent of your budget. You will want to leave room in your budget to pay down any debts, should you have any, as well as some entertainment money for when you want to get out of the house.

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maren1453 days ago

30% of your income.

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Alirio1452 days ago

One-quarter of your income. you should have room for food, clothes, services (wifi, tv, electricity, water) transportation, vacations, savings. Do not overthink. Don't spend what you don't have.

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koroleva1452 days ago

I read on an article that in France it's about 1/3 of the income an shouldn't be more than that. It's seem fair enough but still, it depends on your income, your health and your family size. If you are living alone you don't need to spend much on rent.

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vickyph841450 days ago

depending on your fanily size and state for the rates like where i live i would be paying $800 a month for a 2 bedroom and its me and my husband and 2 little boys. for a 3 bedroom apartment is $1080 a month.

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aldem531447 days ago

Не более 25% от годового дохода

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yemioke1447 days ago

it all depends on your income. your income will dictate the amount should spend on rent

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TonyW501439 days ago

Here's what you do. Sit down and write out your monthly earnings after taxes. Then write down the bills you have already that are monthly. Figure out how much in groceries you need a month. Add the expenditures up and deduct from your earnings. That is your available income. Rule of thumb (I used to be a financial advisor) is to put away at least 10% into an emergency savings account. Deduct unnecessary expenditures from life, like Starbucks and things like that. When it's all said and done, what you have left is what you have for rent and utilities. Along the way, think of the future, and begin to invest in a Mutual Fund to save for your retirement. It's highly unlikely Social Security will be there in 10 years.

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