Before you start searching for your perfect apartment home, it’s essential to know what you're looking for and what you can afford. You don’t want to sign a year-long lease only to discover after a few months that you simply can’t afford it. Keep reading to help you determine just how much rent you can afford.
Figure Out Income and Expenses
First, determine what your monthly income is. While most apartments will assess eligibility based on your monthly gross income, we recommend only counting your actual take-home pay. Then make a list of your monthly expenses, including debt, loans, car payments, etc.
Calculate the Percentage
The next step is to figure out what percentage of your income should go towards rent. Twenty percent is ideal, leaving plenty of money for other expenses and savings. Thirty percent is generally considered the "sweet spot" as it provides a great balance between all costs. Forty percent is considered a littel riskier, but is doable as long as you keep an eye on your spending.
Subtract Your Totals
Now take your total income and subtract monthly expenses and rent to determine what you have left over. Keep in mind that this money should account for things such as groceries, gas, and other essentials. Next, make an estimate of varying expenses such as water, trash, and electricity and subtract them as well. When you look at that remaining amount, determine whether it leaves you enough to thrive or just survive.
Use Online Tools
There are plenty of resources online to help you determine how much you can afford to spend on rent. Simply search “rent calculator” and start entering your info.
Now that you know how much you can afford for rent, it’s time to start looking. Lucky for you, there are plenty of Weidner Apartment Homes that will fit into your price range. Start looking for your future home now.