Figuring Out How Much Rent You Can Afford

So what can you afford? You may not know how much rent you can afford, but your government has a suggestion. The US Housing Department guideline says that your rent should be no more than 25-30% of your gross salary (your income before taxes are deducted.) To get a better picture of what that means, here is a chart.

Amount You Would Spend For Housing (at 28% of Income)

Don’t get too depressed from looking at this chart about how much you can afford. Find out how much apartments cost in your desired neighborhood by browsing newspaper classified ads or online rental sites such as Move.com or Craigslist.org. This will help you determine if you can even afford to make the move, and whether you'll need a roommate (or two) to split the costs.

Action: Based on the chart above, figure out how much you can afford each month for rent.

Tool: Monthly Apartment Budget

Up Next: You Can Live Rent Free

This is an excerpt from Deciding Where to Live After College Guide which is included in our Real World 101 Care Packages. Visit our Care Package page to find out how to get one for yourself or for a lucky college grad!

Comments

[larry]

My advice, is look for the least expensive apartment that is still in a safe neighborhood.