Rental Basics in Queens>Question Details

Daisy, Home Seller in Queens, NY

based on my salary, how much rent can i afford?

Asked by Daisy, Queens, NY Wed Sep 29, 2010

Help the community by answering this question:


Anna M Brocco’s answer
Not knowing your overall living expenses, lifestyle, needs, etc., not so easy to answer--much will depend on your actual salary, apartment size needed, miscellaneous living expenses, etc.-- why not create an actual budget of own, write all your expenses, and then make a determination.
0 votes Thank Flag Link Wed Sep 29, 2010
I agree with both answers... 25% conservatively and 36% respectively. Please be cautious when determining what you can afford for rent. If you use the lenders version (36%) you need to keep in mind that they do not take alot of factors into consideration such as child care or people who prefer to eat out... this expense can add up quickly. What I suggest is that you start with your basic budget for all your expenses. In addition, for a full calendar month save every receipt you acquire right down to a cup of coffee. At the end of the month not only will you see exactly where you spend your money but you will have a ball park figure for misc. expenses. With this information you should easily be able to determine a comfortable rent for your lifestyle. Just because you can "afford" a specific rent doesn't mean you will be comfortable with it. Best of Luck!
0 votes Thank Flag Link Wed Sep 29, 2010
Little question, big topic!
The conservative approach is 25% of gross pay. Careful attention to what is included and what is not included in the rent makes a difference.
However, using a budget and looking at your expenditures each month so you can better plan where your money goes are mportant tools.
here is a reference to affordable housing's view...
0 votes Thank Flag Link Wed Sep 29, 2010
Sounds like you need to create a budget for yourself. There are a lot of sample budget sheets to help you all over the internet. Take a hard look at all of your expense for the month and include everything you spend money on and allocate some for savings. Then you should have an idea of what you can afford. Remember there are other cost associated with renting, like the utilities and renters insurance is also a good thing to look into.

If it helps, a guide-line when some one is buying a house, lenders don't like to see the total cost of the housing expense, and in your case include the utilities to be above 36% of your income.
0 votes Thank Flag Link Wed Sep 29, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer