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Ampersand Property Management

How Much Rent Can You Afford?

How Much Rent You Can Afford?

You probably know how many bedrooms and bathrooms you’re looking for. You might have a preference on the area of town you want to rent in. But how do you know how much you can afford to pay each month for rent?  The classic answer is: It depends…what other payment obligations do you have?  That answer sucks. You could go through and write down each and every thing you pay for each month, but I bet you’d forget a lot of stuff. And some months you might have an expense that you don’t have other months–or you do have it, but it’s a different amount–or your might have it, you don’t really know how to predict the future, so you can’t tell for sure.

Make Your Life Easier

There’s a much simpler way of figuring out how much rent you can afford. All you have to know is how much you make per month. If that’s not a set amount because your hours are flexible, just figure out the average. If you know what you made last year, take the total amount and divide it by 12. If you’re off a little, it probably won’t make that much difference, so just pick a number that seems typical for what you earn in a month.

Rental Amount

Divide your monthly income by 3.  That’s it, no tricky math. One third of your gross pay is all that’s recommended for you to pay for housing. Remember that that’s as high as you should go. If you can find something cheaper, you’re in good shape. You’ll have more money to spend on all the other things you need like food, gas, and big screen TVs.

So now you know and can figure it out. Check out our rentals if you’re looking for something in the Billings area; we’d love to have you as our neighbor!

 

 

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