How Much Rent Can I Afford? A Simple Guide to Budgeting for an Apartment
Use the 30% guideline, plan for extras and build a budget that works for you.
Figuring out how much to spend on rent is one of the first steps in any apartment search. Set your budget too high and you may feel stretched every month. Set it too low and you may miss out on a place that would have worked. Here is a simple way to think it through.
Start with the 30% guideline
A common rule of thumb is to spend about 30% of your gross monthly income on rent. For example, if you earn $4,000 a month before taxes, 30% would be $1,200.
It is only a starting point. Your other expenses, savings goals and debts all affect what is comfortable. Some renters spend less to save faster, while others spend a bit more for a great location or amenities.
Know what landlords look for
Many landlords have an income requirement, often expressed as a multiple of monthly rent, such as two and a half or three times the rent. Ask the leasing team what their requirement is so you can plan ahead.
Don't forget the extras
Rent is not the only housing cost. When you compare apartments, add up:
- Utilities: electricity, gas, water, trash and internet. Ask which are included.
- Parking: some communities charge for garages or reserved spaces.
- Renters insurance: usually affordable and often required.
- Laundry: in-unit laundry can save you time and coin-machine costs.
- Pet fees or pet rent, if you have pets.
An apartment with slightly higher rent but more included can end up costing less overall.
Plan for move-in costs
Moving usually requires some cash up front. Common costs include:
- Application fees
- A security deposit
- First month's rent
- Moving expenses, such as a truck, movers or boxes
- Utility setup fees
Having a cushion set aside makes moving day much less stressful.
Build a simple monthly budget
Try this quick exercise:
- Write down your monthly take-home pay.
- List fixed costs such as car payments, phone, insurance and debt payments.
- Add regular spending such as groceries, gas and subscriptions.
- Decide how much you want to save each month.
- What is left is a realistic range for rent plus utilities.
Ways to lower your monthly costs
- Choose features that save money. In-unit laundry means no trips to the laundromat.
- Watch energy use. Adjusting the thermostat and using LED bulbs can trim utility bills.
- Bundle insurance. Many providers discount renters insurance when combined with auto insurance.
- Think about location. Living close to work or transit can cut gas and parking costs.
Keep an emergency fund
Life happens. Aim to set aside some savings for unexpected costs such as car repairs or medical bills, so a surprise expense never puts your rent at risk. Even a small amount saved each month adds up over time.
Consider roommates or a different floor plan
If your ideal location feels out of reach, a two-bedroom shared with a roommate can lower your cost per person. A smaller floor plan in a great location might also be a better fit than a larger one farther away.
Find an apartment that fits your budget
Lakeshore Management offers one- and two-bedroom apartments in Brooklyn Park, Brooklyn Center and Crystal. Browse current availability to compare floor plans and pricing, or contact our team with questions about what is included.
