How Much Should You Spend On Rent?

If you’re moving out for the first time or you’ve just received a significant pay change, you may be wondering how much you can spend on your rent each month.

It’s typically recommended you spend 30 percent or less of your monthly income, but that doesn’t factor in your whole financial situation.

What if you have a significant amount of debt or no debt? Maybe you want to prioritize your retirement investments, or you live a more minimalist lifestyle and don’t need too much spending money.

If you need help building a monthly budget, try this rent calculator from Mint. Once you input your monthly income you can see how much rent you can afford and adjust your payments to see how it affects your other financial obligations.

The best way to confirm you have a solid budget is to follow the 50/30/20 rule.

That is that 50 percent of your budget goes towards needs, like rent, utilities, and groceries.

Then you have 30 percent planned for your wants, like gym memberships.

The other 20 percent goes towards your savings goals, like moving budgets and retirement.

Knowing how much you can afford to spend on rent can save you a lot of time during your apartment search, as many properties don’t accept tenants that make less than triple the cost of rent.

It can also help keep you from biting off more than you can chew and gives you enough wiggle room to put away extra money for a rainy day, saving you from financial hardships.