$900 a mo. apartment on 40k salary....?

Question

Ya think I could afford an apartment that is $900 a month on a salary of 40k a year? I have no children, single, one vehicle, and am also taking college courses. No other outstanding expenses other than those. Oh, and I live in the DC metropolitan area.

Answer 1

you should totally be fine!

Answer 2

Well that's MORE than a quarter of your income AND you haven't started with utilities.  Rule of thumb is not more than 1/4 of income on housing.  Don't go more than 1/3 for living expenses.  If you avoid overextending yourself, avoid credit, live modestly, don't get a new car, you can do it.  What about college costs?

Answer 3

The rule is that your rent payment should not be more than one week take home pay.

Answer 4

After taxes, I estimate that you probably bring home $2,333 a month?  They suggest the max to spend on your housing is 50%, so you would wind up okay.  You might want to pay the least you can manage, though, just so you'll have more to save or for yourself.

Answer 5

Banks and lending institutions use 28% of your gross salary as the guide. It has been shown over time that this is the maximum amount that till allows for a decent quality of life. Based on your numbers, you are around 27%, so it would fine. You should be OK with this rent.