If you’re planning to relocate in the coming months, it’s important to devise a reasonable budget before you start apartment hunting. While location and rental market conditions will determine what you pay to a large degree, there are other factors you should consider to ensure you’re spending within your means. Use the guide below to help craft a well-considered plan. 

How to Calculate Rent Affordability 

1. Total Income 

Your total income will be the primary factor when it comes to determining an apartment budget. Experts recommend spending no more than 30% of your monthly gross income on rent and utilities. To live comfortably, aim to spend less than that.  

2. Living Expenses 

Include expenses like food, clothing, health insurance, childcare, and entertainment when calculating your overall budget. If the perfect apartment in a dream neighborhood is just out of reach, consider if you could cut back on personal costs. 

3. Long-Term Goals

People with ambitious savings goals, such as saving up enough cash to put a down payment on a home, may want to spend less on rent so they can achieve their objectives faster. 

4. Transportation Costs 

While transportation costs often fall under living expenses, it is wise to consider them separately when looking at apartments. If you move to the suburbs, for example, you’ll have to account for vehicle maintenance, fuel, and car insurance. Explore your public transportation options to see if this is a viable way to cut costs. 

5. Potential Emergencies

Unanticipated expenses can arise at any time for anyone; however, if you have pets, children, or a vehicle, you may be more likely to face a costly emergency than someone who has none of the above. When calculating a reasonable rent budget, make sure to account for potential emergencies like vet bills or car repairs. Although such emergencies will not arise every month, they can cost a lot more than a single month’s expenses when they do. 

 

If you’re planning on moving to a new apartment in New London County, CT, or Washington County, RI, turn to Murphy Properties. Proud to be a family-operated property management company, they provide quality living arrangements for working singles, couples, and retirees. All of their properties are just a short distance from shopping centers and other enviable amenities, but are surrounded by natural settings, so residents can enjoy peace and tranquility. Visit their website to check availability at a particular apartment complex, or call (860) 599-1980 to discuss your needs today.