Is 35% On Rent Too Much?
Some estimates for these additional housing costs are more conservative. CBS MoneyWatch recommends not exceeding 3 to 4 percent of your gross income for utilities. Most people spend between 30 and 35 percent overall on rent and utilities.
If 30% of your Gross Pay is more than you're currently paying each month in rent, then you're at a safe level for housing. If 30% of your Gross Pay is less than your monthly rent, many financial professionals would suggest that you find a more affordable home or increase your income.
How much of your monthly income should go to rent? - Chase Bank
A Better Rule of Thumb A slightly more realistic guideline suggests spending 30% of your take-home pay on rent. ... The "40 times rent" rule says your salary should be 40 times your monthly rent, but this fails to account for taxes, and for the specifics of your financial situation.
How Much Rent Can You Afford on $50K a Year? - Investopedia
Most financial experts recommend spending around 30% of your gross monthly income on rent (note that gross is different than net income—gross is your income before tax).
How Much Rent Can I Afford? Complete Guide | 2021 | Bungalow