The Truth About What Tenants Can Pay For Rent
- Tenants with low income and bad credit almost never pay rent on time -
How much rent can you afford?
It depends on how much cash you're bringing in
Enter how much you earn each year? (no commas) (before taxes)
Low End 20%
If 20% of your income is what you spend on rent, every landlord will love you. But it's not time for a shopping spree yet. Remember this amount does not take into account any other debts you may have. Other monthly debts should not exceed 30% of your income.
Middle Road 30%
30% is the recommended amount of gross income to spend on rent. Most landlords expect the monthly income for the apartment you want to be in this range along with a credit score of 620 or higher. If 2 or more adults are in the household the monthly incomes are combined.
High End 40%
A nice home is important to all tenants, but if 40% or more of your gross income is the cost of the home you want to rent, then it might be time to downsize. If your other debts are above 30% of your monthly income, most landlords will believe there is a strong possibility you will eventually fall behind on rent payments..