Comments on: How Much Should You Spend on Rent?

By: What do you think?

What do you think? — Wed, 27 Jul 2011 17:45:59 +0000

Just signed a lease in Hoboken, NJ (work in NYC), my rent will be 18% of gross income and 26% of net pay. Reading some of these posts, I can’t help but think that it’s definitely possible for renters in larger citices to keep their rent down. A 30-40% of net is a good ceiling. Anything above that just isn’t financially healthy.

By: Nat

Nat — Wed, 29 Jun 2011 02:40:12 +0000

In Los Angeles, I paid 28% of my net income in rent and utilities. Working in NYC, I pay over 40%, and I live in Jersey City. If I wanted a similar apartment in NYC, I would be paying probably around 50%+ for rent and utilities.

Consider this for NYC: Federal will probably take 25-28% in tax. New York State will take 6-7%. New York City will take another 3-4% if you live in the city.

On the expensive side, I’ve seen 400 square foot studios in Manhattan going for $4,295 a month. In Long Island City, Queens, some of the studios in newer buildings go for around $2,200 a month. You can find more decent rent if you live in East Harlem or north of 145th Street…

By: PW

PW — Fri, 03 Jun 2011 18:41:26 +0000

You’re in over your head

By: KB

KB — Sun, 27 Feb 2011 19:07:48 +0000

I just moved to NYC and, assuming the gov’t, city, etc. will take 25% of all of my earnings in Taxes, I am paying 55% of my after-tax income in rent and utilities. However, that’s the end of the year. Currently, I’m budgeting 60% of each paycheck for rent – bc, as I get paid bi-weekly, the two months where I will get paid thrice are July and December – it will not be until December that I will break even (cashflow issues mean that I am -1000 at the beginning of each months’ rent). Between rent, food, transport expenses, I’ve budgeted myself ’bout 40$/week in ‘free money’ – concerts/going out/
But, I have an amazing roomming situation – living with good friend from college, financial district, safe, door man, free gym, true two bedroom/two bathroom.

By: Ashtin

Ashtin — Fri, 24 Sep 2010 00:33:59 +0000

I’m glad I found this post; I’m actually trying to decide right now what to do with my living situation. I live in a cheap, cheap- looking apartment. We pay about 20% of our income here. As a stay at home mom,I want something more. We’re home all the time. We could rent to own a nice home right now that we found, but that would mean less outings, less entertainment, less family trips, less eating out, buying cheaper clothing and cheaper household items. I’ve currently been debating if it’d be worth it.. The home would be about 45% of our take-home income, and we’re both still paying off student loans & other bills, so things would be tight. But the house is beautiful and about 3 times larger than our current place. Your post has helped me make my decision, and I do believe that having a nice home makes you feel better about yourself, and would be a much better place to raise happy children.

By: Brittany

Brittany — Wed, 25 Aug 2010 14:18:07 +0000

When I lived in NYC, I was spending 35% of my income on rent alone (not including electric, water, etc.), and that was even living in Queens and splitting an old apartment with two other roommates! And I probably made an actual OK salary by NYC entry-level standards (around $38K). To live in Manhattan it would probably take over 50%!

So I would say yes, it’s very hard to keep it at 30% in NYC without living hours away or compromising your safety or living in bunk beds with 10 other people!

By: Ashley

Ashley — Wed, 04 Aug 2010 00:25:06 +0000

I live in NYC. This is not possible – unless you want to live somewhere really undesirable. Or out of Manhattan. Rent is expensive and the city tax is a secret killer. But it’s a nice idea, haha!

By: Britt

Britt — Mon, 02 Aug 2010 23:22:02 +0000

The 30% figure would perhaps be an ideal, but it is not always realistic. I have recently moved to Sydney and chose the pay more in rent so that I could have an inner city lifestyle whilst getting to know my new city. If it means I spend less money and time on transport then I am happy to pay more.

By: Alix

Alix — Mon, 02 Aug 2010 22:04:12 +0000

I think Al is right – without going completely overboard and spending say 75% on your rent/mortgage alone, the percentage you spend will depend on how you live your life and what you’re comfortable with. Maybe you like to entertain at home a lot, and having people over often will then lead you to spend more on housing. On the other hand if you’re never home, say you travel for work, you are comfortable spending a smaller percentage of your income.

Personally I will be spending close to 50% on housing and utilities, but, I am willing to do that because of the location and building – it just means I have to spend less on other things.

By: AL

AL — Fri, 30 Jul 2010 16:53:24 +0000

I’ve been seeing this 30% number recently and I think it’s absurd to generalize the amount you should budget for rent, if you don’t take in the factor of the area of the country you live in. I live in Washington, DC — no way when I first started working would I have been able to only spend 30% on rent and utilities, I’m still not spending that low. I did a quick calculator math of my current mortgage, condo fees, and utilities, and I’m spending 45% of my disposable income. It’s what I’m willing to spend though in order to live in a safe area and have the amenities that I want. I know the same goes for other high rent/high cost areas, such as NYC or Boston. As long as you are living within your means — and able to do what you want to, when you want to — then I think you can spend what you wish.