From The Ashes
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Wed Jan-09-08 06:44 PM
Original message |
I have a rent question... |
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Is there a formula that tells me how much rent I can afford? I want to live somewhere nice, but I don't want to spend too large a percentage of my take-home.
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Rabrrrrrr
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Wed Jan-09-08 06:46 PM
Response to Original message |
1. "One month's rent should be less than 1/40 of your salary" is the standard NYC rate. |
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Edited on Wed Jan-09-08 06:47 PM by Rabrrrrrr
I have no idea about the rest of the country. Probably less.
But the only real way is to look at your monthly income and your monthly expenses (without rent), and see what you have left over.
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Xithras
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Wed Jan-09-08 06:49 PM
Response to Reply #1 |
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I don't think I know ANY renters who make 40 times their monthly rent!
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Rabrrrrrr
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Wed Jan-09-08 06:49 PM
Response to Reply #4 |
6. No, 1/40 of salary. 1/4 of salary would be insane. |
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Edited on Wed Jan-09-08 06:50 PM by Rabrrrrrr
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Xithras
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Wed Jan-09-08 06:51 PM
Response to Reply #6 |
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I was thinking about a monthly basis. Montly rent being 1/40th of your YEARLY salary works out to about 1/3rd of your monthly income, which sounds about right nowadays.
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Rabrrrrrr
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Wed Jan-09-08 06:53 PM
Response to Reply #7 |
8. Yes, one's annual income. |
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I never think of "salary" being anything but annual, but I suppose it could be.
I should have been clearer.
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huskerlaw
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Wed Jan-09-08 06:53 PM
Response to Reply #4 |
9. If your rent was 1/4 of your yearly salary, |
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you'd be homeless pretty quickly...
One month's rent should be 1/40 of your yearly salary. I think before taxes. That formula works in Los Angeles too, as far as I can tell.
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ChoralScholar
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Wed Jan-09-08 08:04 PM
Response to Reply #9 |
12. Apparently I should be living in a much nicer place. |
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1200 dollars a month would rent me a freaking awesome house in Northern Arkansas.
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huskerlaw
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Wed Jan-09-08 10:05 PM
Response to Reply #12 |
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$1200 wouldn't get me much of anything here in LA. ;)
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Tuesday Afternoon
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Wed Jan-09-08 06:49 PM
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rug
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Wed Jan-09-08 06:47 PM
Response to Original message |
2. When this country once had an economy the formula was one week's pay for one month's rent. |
Xithras
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Wed Jan-09-08 06:48 PM
Response to Original message |
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Edited on Wed Jan-09-08 06:49 PM by Xithras
oops, wrong spot
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Gormy Cuss
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Wed Jan-09-08 07:30 PM
Response to Original message |
10. The other way to calculate it is to expect to pay about 30% of your gross income on rent. |
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Edited on Wed Jan-09-08 07:41 PM by Gormy Cuss
Use your annual income, not 4 x weekly because there are 52.2 weeks in a calendar year. Of course, if you can find decent housing for less than 30% of your income it's even better.
on edit:{(4.3 x weekly gross income)* 30% }is the way to do it using weekly income.
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NMDemDist2
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Wed Jan-09-08 07:33 PM
Response to Original message |
11. my grammy taught me never pay more that 25% of your monthly income |
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on rent and try to include utilities (or at least some of them) in that figure if possible
today I think 30% would be max you should try for
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Bucky
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Wed Jan-09-08 08:06 PM
Response to Reply #11 |
13. Most working class single income homes pay 50% of their income. |
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In case you're wondering why national personal savings rates were down.
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Ptah
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Wed Jan-09-08 08:12 PM
Response to Original message |
14. My rule of thumb is about one third of monthly wages. |
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