Rent Calculator

How Much Rent Can I Afford?

Use the rent calculator below to estimate the affordable monthly rental spending amount based on income and debt level.

Your Annual Pre-Tax Income /Year
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RelatedRent vs. Buy Calculator | Income Tax Calculator | Budget Calculator


Increasingly more and more young adults today are living with their parents, siphoning their parental goodwill for as long as possible until the time comes to grow up and move out. When it comes, it is rare that anyone immediately becomes a homeowner right away. Between this point and the eventual day of their homeownership, renting is usually the sought-after short (or long) term solution.

The belief that renting is the equivalent of throwing money away is not necessary a valid claim. By that logic, homeowners also throw money away when they pay for property tax, mortgage interest, maintenance, or insurance.

However, sooner or later, many people will reach a point in their lives where they are faced with the decision of becoming a homeowner while renting. Use our Buy vs. Rent Calculator to evaluate the financial feasibility of doing so. Our House Affordability Calculator or Mortgage Calculator can then help to determine an affordable home and subsequent monthly mortgage payments.

Finding a Place to Rent

It can be easy or terribly difficult to find a place to rent depending on many factors, and one of them is location. Rural areas tend to be easier; many times, it's as simple as driving around searching for "For Rent" signs or apartment complex. Then, just schedule a viewing or simply ring the doorbell of the leasing office. On the other hand, in or near some but not all major metropolitan areas, rentals can be scarce due to factors like population density or local policy. In such situations, finding a vacant place takes a lot of hard work. Renters have to scan the Internet sites like Craigslist often or paying an agency to do the search. Once a place becomes free, the renters may have to race to view it, and then, if it's practicable, put in an application right away.

How to Determine Affordability

There are many methods for determining what is considered affordable rent. Affordable is a relative term and carries a different meaning for different people. Some people think a front-end debt-to-income ratio of 25% is considered affordable, while others might think 1/3 of income is the plausible judge of that. However, most people just do ballpark calculations in their heads.

It is important to be aware that the cost of rent is only one of many things to consider financially. Don't forget emergency funds, insurance, and other house-related expenses.

Ideas to Decrease the Cost of Rent

According to a report by Harvard's Joint Center for Housing Studies in 2015, nearly half of renters in the U.S. are struggling to afford their monthly payments. Half! It is very possible to decrease the cost of rent in many ways concerning many different situations.

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