One of the biggest factors in finding an apartment is the price tag for renting a place of your own. The question, ‘how much can I afford?’ should be at the top of your apartment hunting checklist. When determining an affordable expense, the general rule of thumb is that no more than 30% of your after-tax income should go to rent. Translation? Take your annual salary after taxes, then divide by 12 and multiply by .30 to calculate how much you should spend monthly on rent. This rule of thumb doesn’t have to be used as an indicator for your monthly rental calculations, it’s merely a starting point for calculating how much you can actually afford.
Another huge factor is your lifestyle. Are you a homebody? Balanced between homebody and extrovert? Or do you love going out and only use your apartment to catch some Zzz’s? Your lifestyle can also determine the amount you should pay towards rent. If you love being in your quiet place, you may want to pay 30% or more of your income to enjoy a nicer apartment. For those who have found their balance, spending between 20% and 30% is ideal. In summary, you’re going for a nice place, but it doesn’t have to fit your every need. The ‘out and about’ renters may want to pay as little as around 15% of their income towards rent. This is pretty much paying for the necessities such as water for a shower and catching up on sleep.
And lastly, take into consideration additional expenses such as utilities, community fees, water, etc. Some apartment properties may not have these additional expenses included in their monthly rent price, which will ultimately affect your out-of-pocket costs.
Let us help you start your search by checking out the ForRent.com monthly rental calculator.
And for additional apartment hunting tools, check out Ease Your Search: Apartment Hunting Checklist