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In NYC, you'll typically see landlords advertising that your annual gross salary must be 40x the monthly rent. So, if your monthly rent is $1,000, the landlord would expect to see at least a $40K salary.
In reality, this rule really just comes down to that no more than 30% of your gross salary should be for rent. So if you make $40K, your monthly income is $3333 and 30% of that is $1,000.
IMO, using 30% of your gross income towards rent is a waste of money. I'm at about 14% for my apartment and would go even lower if I could. As Mysticaltyger says above ^, "the lowest % of your income for a place you can stand".
So if you make $15K, how much should you be paying for rent?
WOW, just shoot me now....Maybe I can find a pretty good tent at Goodwill..... just kidding, but I feel this will come to pass, maybe not in our time but it is coming. Thank you for your reply..
Elmer: Should I shoot him [Bugs] now, or wait 'til I get home?
So if you make $15K, how much should you be paying for rent?
Based on the 25% of gross idea ($15,000 /50) it comes out to $300 +utilities.
Will $350 w/utilities still get the 3rd (smallest) bedroom in a house share?
That used to be enough to get the Mster Bedroom with private bath.
Otherwise it's however much your Mom or favorite aunt asks you for...
in addition to mowing the lawn and other chores needed to make up the difference.
Based on the 25% of gross idea ($15,000 /50) it comes out to $300 +utilities.
Will $350 w/utilities still get the 3rd (smallest) bedroom in a house share?
That used to be enough to get the Mster Bedroom with private bath.
Otherwise it's however much your Mom or favorite aunt asks you for...
in addition to mowing the lawn and other chores needed to make up the difference.
Well, yes, I did the math...actually I had Google do the math for me.
But I was thinking in the context of NYC, I don't think that would work there.
Which leads to another one of my WAG's:
Since adult (independent) burger flippers can't afford to actually live in NYC, is youth unemployment lower in high-rent areas than in low-rent areas?
In NYC, you'll typically see landlords advertising that your annual gross salary must be 40x the monthly rent. So, if your monthly rent is $1,000, the landlord would expect to see at least a $40K salary.
So if you make $15K, how much should you be paying for rent?
All of these equations and rates really don't work well for the two ends of the spectrum. As you noted above, low wage earners often pay upwards of 50% of their gross income on rent and struggle to make ends meet. It's a really rough way to live.
So, on 15K, your rent should probably be in the $300-$375 range. Sound like a roommate(s) type situation or living with family or friends, or perhaps a single room in a low cost area of the country. Your QOL in NYC would be VERY low on 15K.
All of these equations and rates really don't work well for the two ends of the spectrum. As you noted above, low wage earners often pay upwards of 50% of their gross income on rent and struggle to make ends meet. It's a really rough way to live.
So, on 15K, your rent should probably be in the $300-$375 range. Sound like a roommate(s) type situation or living with family or friends, or perhaps a single room in a low cost area of the country. Your QOL in NYC would be VERY low on 15K.
But...but...many conservatives claim that an American living on $15K is fabulously wealthy by global standards, perhaps even in the top 1%. How can this be?
The first apartment complex I lived in when moving to the U.S. wasn't by any means Section 8 or Low Income, but required proof of employment and proof of earnings prior to signing the lease. The agreement was, that the rent (which was $600 and change for a 1 bedroom) could not exceed 1/4th of your total monthly income after tax.
Currently, my husband and I pay about 1/8th to 1/10th of our monthly income in rent (I left my job recently as we are relocating and it somewhat depended on my hours and overtime). The house is old, shabby and not without it's problems (definitely the worst place I've lived) but living here the past 3+ years has given us the opportunity to save up to buy a house mortgage free.
Honestly with that said, to the OP: I wouldn't exceed more than a quarter of your total monthly income in rent- but if you can manage on less of a house or apartment for less of a percentage of your income- you'll be better off for it. When you're renting, it isn't so much about Keeping up with the Joneses- a rented home is only temporary after all. Consider it an opportunity to save up for a House Deposit or to buy a House/Apartment somewhere down the line.
Good Luck to you!
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