How Much Rent Can I Afford?

12:52 PM Candy Crush and Snowman Butts 0 Comments

Are you thinking of moving into a different house or apartment? Are you wondering how much rent you can comfortably pay? Zumper makes it easier to calculate how much rent you can afford to pay. 

First you need to make a list of everything you spend money on each month. Keep in mind that beyond paying monthly rent ,  you may need to pay various upfront expenses when moving into a rental property. Expenses may include: Security deposit, pet deposit,amenities fees, move in fees, and parking fees.

Along with rent, you may need to pay for your utilities. Contact your utility provider to ask how much the average utility costs for your new address are.

The ideal sweet spot is spending around 30% of your income in rent to ensure you maximize your savings. As a rule of thumb, we suggest spending no more than 40% of your income on rent to be able to save enough money for all your living expenses.

How Much rent can I afford on minimum wage?

Historically, experts suggest spending 30% of your income on rent. Currently, the U.S.'s federal minimum wage is $7.25 per hour. However, many states have their own minimum wage laws, so it's important to see if your state guarantees you more than the federal minimum wage.
Using the 30% rule and the federal minimum wage of $7.25 an hour, you can afford $377 in rent per month. While finding housing in this price range in big cities might be a challenge, many rural and suburban areas have rental properties within this budget. You can also consider finding roommates, which brings the cost of renting an apartment down considerably.
Make sure your income will adequately cover your rent and housing costs when selecting a place to live.

What is the recommended rent to income ratio?

When you're looking for a new apartment or house to rent, it's vital to consider how much of your income you plan to spend on rent, utilities, and any other housing expenses. Having a budget in mind before signing a lease ensures you'll be able to pay your rent every month.
We suggest spending around 30% of your income on your rent and other housing expenses. For example, if you make $50,000 per year, you should plan to spend about $15,000 annually on rent, or $1,250 a month. If you're having trouble finding places to rent within your budget, consider getting roommates or looking in less expensive neighborhoods to meet your needs.
Establishing a budget for your housing expenses is important. It will help ensure you have enough income every month to easily pay your rent and still have money for important necessities like food and transportation. Use the 30% rule to help you determine how much money you should spend on rent every month.

So, what is Zumper?

Zumper is used by millions of Americans to find apartments, houses, rooms and condos for rent.  Apply online, submit digital rental applications and credit reports with Zumper's screening service, powered by TransUnion .

Their inventory is updated in real-time, so you'll always see new listings on Zumper first. 
You can filter by location, price range, bedroom count, pet-friendly, amenity, and set an alert to get notifications when a new listing is posted.