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How much should I be spending on rent?

Rent is a necessity, but how much should you be spending?

For many people across the country, rent is a necessity. Many people do not have the luxury to move back home and live rent-free while you get your finances together. If you are renting for the first time, you might not know what to spend on rent. You don’t want to end up being house poor, where the majority of your pay goes towards housing, leaving very little for other expenses. If too much of your paycheck is eaten up by rent, you may fall into debt if you have unexpected expenses. Discover how much you should be spending on rent to be financially responsible.

How much rent can I afford?

Find out how much rent you can afford by calculating your income-to-rent ratio. That is the portion of your income that should be spent on rent. Financial experts recommending spending no more than 30% of your net income towards rent. According to the American Community Survey conducted by the U.S. Census Bureau, people who spend more than 30% on living expenses become “cost-burdened.” Those who spend more than 50% on living expenses become “severely cost-burdened,” according to the survey. When determining how much you can spend on rent consider the household income or total income of everyone who will be living with you. If you are planning on moving in with a roommate, you will combine both incomes to calculate the income-to-rent ratio.  

Budget for more than just rent.

Don’t forget to budget for other living expenses. Will you need to pay for utilities, garbage, other expenses? Many people are surprised at how expensive it can be to move. Calculate move-in costs. You will also need to consider how much it will cost to furnish your apartment. You may need to buy furniture, appliances, kitchen utensils, cooking instruments and artwork.


It’s wise to spend no more than 30% of your household income on rent. Spending more could put you in a cost-burdened financial situation. If you need help covering rent, the cost of moving, furniture and more, a personal loan can help. You can request a personal loan at today.

This post is not intended to be a solicitation for a loan. BrighterPays provides these blogs for entertainment and informational purposes only. Remember to consider all your financial options before making any decisions related to credit.