Whether you wish to live in a condominium or an apartment, understanding how much you can afford to pay for rent is an important part of the equation. You don’t want to spend the bulk of your paycheck on your rental, but understanding how to budget properly can sometimes be a challenge. Thankfully, there are a few simple rules you can use to set an appropriate budget, no matter what your income might be.

How Can You Set a Rental Budget?

1. 30 Percent Rule

A long-quoted financial rule is that renters should never pay more than 30 percent of their monthly income on rent and utilities. Historically, the government defines households that pay over 30 percent of their monthly income on rent as “cost burdened,” meaning they may have trouble covering other basic necessities.

2. 50/30/20 Rule

The 50/30/20 rule is another popular budgeting strategy to help you set firm boundaries on rent payments. In this scenario, you allot 50 percent of your budget to basic necessities that have a consistent month to month cost. This includes rent, as well as groceries, utilities, and transportation. 30 percent can then be spent on non-essentials, while the final 20 percent should go to loan payments or savings.

3. 40 Times Rule

Some landlords have an income requirement that a renter’s total annual income be at least 40 times greater than the monthly rental fee. Dividing your annual salary by 40 will give you the rent rate that you would be qualified for. For example, an annual salary of $50,000, divided by 40, means you could qualify for apartments with a monthly rent of up to $1,250.

If you’re looking for condominiums or apartments for rent, entrust your search to Eagle Realty & Investment. Serving the Statesboro, GA, area for over 20 years, this real estate agency helps local residents and students find rentals that fit their lifestyle and budget. To learn more about currently available rentals, visit them online or call (912) 871-0333.