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# Dougv00's Blog

By Douglas Vigil | Property Manager in 95219
• ## How Much Rent Can You Afford To Pay

Posted Under: Celebrity Homes in Stockton, Rental Basics in Stockton, Rent vs Buy in Stockton  |  November 16, 2010 2:57 PM  |  1,459 views  |  No comments
How Much Rent Can You Afford To Pay?
To determine how much monthly rent you can afford, the following formula may be used:

Monthly Rent  =  ( 0.4x Gross Monthly Income) – Monthly Debts
Monthly debts include items such as car payments, card payments, installment loan payments, etc.
For example, suppose you make \$4,000 per month, have a car payment of \$250 and credit card bills of \$100 per month. Using the formula, you would be able to pay \$1,250 per month rent as follows:

Monthly Rent = (0.4x 4000) – (250+100) = \$1,250 per month
The table below shows typical results. Although your specific situation may differ, the table and monthly rent formula may be helpful to you for planning purposes.
Monthly Income    Monthly Debts   Monthly Rent
\$2,500                 \$150                  \$850
\$3,000                 \$200               \$1,000
\$4,000                 \$350               \$1,250
\$5,000                 \$400               \$1,600
\$6,000                 \$600               \$1,800