I spend 6.1% of my Gross income on rent

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tdonline
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Re: I spend 6.1% of my Gross income on rent

Post by tdonline » Tue Sep 17, 2013 11:10 am

ryuns wrote:If you want to really win the internet, you have to include transportation costs.
tdonline wrote:I rent and it's just under 19% of gross income. I do live in a super convenient and safe area so I haven't had a car in 9 years.


Transportation is a huge factor that a lot of people leave out. http://htaindex.cnt.org/
Yep, it was the major factor in my decision to stop house hunting recently. All the places I could afford would necessitate a return to a car-centric lifestyle. Financially and logistically it made sense to stay put and continue to rent.

Gnirk
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Re: I spend 6.1% of my Gross income on rent

Post by Gnirk » Tue Sep 17, 2013 11:59 am

If I were not married, and had to spend just 6.1% of my projected monthly income on rent, it would equal $305. Can't even rent a room for that!!

stoptothink
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Re: I spend 6.1% of my Gross income on rent

Post by stoptothink » Tue Sep 17, 2013 12:10 pm

Gnirk wrote:If I were not married, and had to spend just 6.1% of my projected monthly income on rent, it would equal $305. Can't even rent a room for that!!
Depends on where. I pay $380/month (about 7% of my income) for the master in a very nice 6bdr/4bt home, with utilities/cable/internet all included. I have two roommates who share a bathroom and they pay $290. My fiancee pays $300 all included. Fairly low-cost area with two major universities within 3 miles of each other, a lot of rental availability.

origami
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Re: I spend 6.1% of my Gross income on rent

Post by origami » Tue Sep 17, 2013 12:43 pm

I'm not rich, live in a fairly expensive city, no roommates, walk to work and I spend 2.6% of my gross income on housing (3% with utilities).

surfer1
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Re: I spend 6.1% of my Gross income on rent

Post by surfer1 » Tue Sep 17, 2013 1:14 pm

Renting in NJ at about 19% for a 3-bedroom.

I think that's pretty good, considering house prices and property taxes around here.

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WendyW
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Re: I spend 6.1% of my Gross income on rent

Post by WendyW » Wed Sep 18, 2013 8:23 am

ryuns wrote:Transportation is a huge factor that a lot of people leave out. http://htaindex.cnt.org/
Agreed. I've heard that Los Angeles is a particularly expensive place to live, because after people spend 20%+ of their gross income on rent, they still need to spend another ~10%+ on owning and maintaining a car.

Atilla
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Re: I spend 6.1% of my Gross income on rent

Post by Atilla » Wed Sep 18, 2013 7:28 pm

Harold wrote:
VictoriaF wrote:
Harold wrote:
Atilla wrote:I go to the grocery store with a pistol in my pocket.
And on an unrelated note -- Atilla spends 0.0% of his Gross income on groceries!
His bullets count towards the grocery budget.

Victoria
Thought of that -- but who says he needs to shoot? Gun-toting grocery shopper who keeps mutual fund expense ratios down is probably going to keep bullet costs down as well.
Grocery store ammunition cost so far has been zero, thankfully.

Zombie Patrol Group weekends are another matter entirely. 1,000 rounds of 40 S&W plus another 500 rounds of 308 Winchester and some Tannerite explosive don't come cheap. But who ever said raising a son wasn't going to cost some money every now and then?
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tdonline
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Re: I spend 6.1% of my Gross income on rent

Post by tdonline » Wed Sep 18, 2013 7:55 pm

WendyW wrote:
ryuns wrote:Transportation is a huge factor that a lot of people leave out. http://htaindex.cnt.org/
Agreed. I've heard that Los Angeles is a particularly expensive place to live, because after people spend 20%+ of their gross income on rent, they still need to spend another ~10%+ on owning and maintaining a car.
Yep, that's my adopted home town. Any coincidence I've been away for 9 years and I have not owned a car during that time? I miss a lot of things about LA, but not the car-centric lifestyle. And I sure as hell do not miss the traffic. It wasn't just the cost either, it was the stress and hassle of maintaining a car, parking, road rage and knowing that it was a question of when, not if, your car would get in an accident, scratched up, broken into, etc.

Barefootgirl
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Re: I spend 6.1% of my Gross income on rent

Post by Barefootgirl » Wed Sep 18, 2013 9:54 pm

I've gotten my total transportation costs down to approx $60/month. This includes gasoline and about 1 oil & lube service per year.

My employer allows me to telework 4 days/week and reimburses me for the remaining day - so this makes me very happy.

My housing costs have been approximately 18% of gross income, but are about to drop sharply.

I am planning to move to a cheaper location (now that I can telework) and rent out the finished basement of the home...

That should bring me to about %10 of gross income and I live in an expensive area...


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3Wood85
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Re: I spend 6.1% of my Gross income on rent

Post by 3Wood85 » Fri Sep 20, 2013 12:22 pm

I am currently at 29% living in the DC area. I am getting a pay increase soon, so that should drop slightly.

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climber2020
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Re: I spend 6.1% of my Gross income on rent

Post by climber2020 » Fri Sep 20, 2013 6:27 pm

I'm at about 5% of gross. Live in a fairly large apartment for one person, but the cost of living here is cheap.

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Clearly_Irrational
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Re: I spend 6.1% of my Gross income on rent

Post by Clearly_Irrational » Fri Sep 20, 2013 6:39 pm

We're at about 11.8% right now although it'll be a lot less after my wife finishes grad school.

crowd79
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Re: I spend 6.1% of my Gross income on rent

Post by crowd79 » Sat Sep 21, 2013 3:51 pm

20% of my income but that also includes electricity, water, sewer, heat and internet service. Not too bad I don't think? 8-)

mavenleek
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Re: I spend 6.1% of my Gross income on rent

Post by mavenleek » Thu Jun 01, 2017 10:31 pm

With my wife we are at currently 8.9% of our gross income for a one bedroom in San Francisco. Unfortunately we are loosing our lease (we moved there in 2012) and need to find a new place which would put us at around 14% if we stick with a place at the median rent. Not so bad but definitvely less money going into retirement. :?

NOLA
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Re: I spend 6.1% of my Gross income on rent

Post by NOLA » Thu Jun 01, 2017 10:59 pm

We are at right around 25%. Wish it was a little lower, but glad we decided to switch to a 15-year mortgage 5 years ago. And we have been lucky so far since it has been a good "investment"

newbie_Mo
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Re: I spend 6.1% of my Gross income on rent

Post by newbie_Mo » Thu Jun 01, 2017 11:56 pm

When we were renting rent and utilities were about 6-8% (1 bedrm then 2 bedrm) of our gross. With our own house we are at 11% with mortgage, ins, pro tax, and utilities. We had a 40% downpayment. 15 yr mortgage.

rec7
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Re: I spend 6.1% of my Gross income on rent

Post by rec7 » Fri Jun 02, 2017 9:27 pm

We own12% on below average household income covers taxes, insurance and utilities.
Last edited by rec7 on Fri Jun 02, 2017 10:05 pm, edited 1 time in total.
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revert
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Re: I spend 6.1% of my Gross income on rent

Post by revert » Fri Jun 02, 2017 9:39 pm

WendyW wrote: When I lived in Manhattan I spent about 20% of gross income on rent.
I suspect that there are few people that live there that spend much less.
5.1% rent/utilities in Manhattan. Such is high income, careful apartment hunting, and roommates... (was closer to 10% when living on my own). :)

Dontridetheindexdown
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Re: I spend 6.1% of my Gross income on rent

Post by Dontridetheindexdown » Fri Jun 02, 2017 9:54 pm

House and land = 4% of net worth.

Utilities, tax, insurance = <3% of gross income.

LCOL area 18 miles from edge of HCOL area.

spammagnet
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Re: I spend 6.1% of my Gross income on rent

Post by spammagnet » Fri Jun 02, 2017 11:47 pm

WendyW wrote:... On the plus side, unlike most low-rent U.S. cities, you don't need to own a car there, which frees up a big chunk of income.
Off topic, but are the costs of a vehicle (ignoring absurd NYC parking rates) not substantially offset by the cost of public transportation, taxis, Uber, etc.?

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avenger
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Re: I spend 6.1% of my Gross income on rent

Post by avenger » Sun Jun 04, 2017 9:11 am

I spend 5% of gross income on rent.
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Markr867
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Re: I spend 6.1% of my Gross income on rent

Post by Markr867 » Sun Jun 04, 2017 9:52 am

spammagnet wrote:
WendyW wrote:... On the plus side, unlike most low-rent U.S. cities, you don't need to own a car there, which frees up a big chunk of income.
Off topic, but are the costs of a vehicle (ignoring absurd NYC parking rates) not substantially offset by the cost of public transportation, taxis, Uber, etc.?
I live in DC, which I know is not nearly as big as NYC, but around here, nearly everyone has their commuting expenses paid for by their company. The government puts money on my SOs metro card each month, and my company reimburses me for any type of commuting expense (whether that be Uber, metro, driving, bike share, etc). A lot of people I know have the same benefit.

And a lot of people walk/bike around cities to get to happy hour, bars, etc. I much prefer to walk as it is healthier and, often, faster than taking an Uber.

Having said all of that, there obviously are times when an Uber or taxi is needed. But I have to think that those costs are still significantly cheaper than owning a car.

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Re: I spend 6.1% of my Gross income on rent

Post by bayview » Sun Jun 04, 2017 11:05 am

Just a note: this was a 2013 thread recently bumped. If you want to ask a question of a member on one of the 2013 posts, you might want to check if that person is still active these days.

Interesting topic, though.
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Re: I spend 6.1% of my Gross income on rent

Post by wrespess » Sun Jun 04, 2017 12:07 pm

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Last edited by wrespess on Mon May 28, 2018 5:37 pm, edited 6 times in total.

protagonist
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Re: I spend 6.1% of my Gross income on rent

Post by protagonist » Sun Jun 04, 2017 12:16 pm

WendyW wrote:'
Or 7.1%, if I also roll in utilities.

Do I win the internets? Or am I a spendthrift by Bogleheads standards ?
Those questions are irrelevant.
The only relevant one is "Are you happy?"

If you are happy, and your happiness can be achieved by spending so little, then you are a winner. Congratulations.
If you are unhappy with your living situation, you can probably easily afford to spend more.

spammagnet
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Re: I spend 6.1% of my Gross income on rent

Post by spammagnet » Sun Jun 04, 2017 5:13 pm

bayview wrote:Just a note: this was a 2013 thread recently bumped. If you want to ask a question of a member on one of the 2013 posts, you might want to check if that person is still active these days.

Interesting topic, though.
Someone else bumped it. I recognized that when I replied. Mine was a generic question which someone in a HCOL area would be able to answer. Somebody did.

bayview
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Re: I spend 6.1% of my Gross income on rent

Post by bayview » Sun Jun 04, 2017 5:15 pm

spammagnet wrote:
bayview wrote:Just a note: this was a 2013 thread recently bumped. If you want to ask a question of a member on one of the 2013 posts, you might want to check if that person is still active these days.

Interesting topic, though.
Someone else bumped it. I recognized that when I replied. Mine was a generic question which someone in a HCOL area would be able to answer. Somebody did.
Right -- my post wasn't directed at you, but at others who come across the thread 8-10 current posts later and don't notice the dates. :beer
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pasadena
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Re: I spend 6.1% of my Gross income on rent

Post by pasadena » Sun Jun 04, 2017 5:24 pm

I pay 19.2% of gross income in rent (17.6% if I count my base bonus, but that's never guaranteed), in LA county. Add ~ 1% for utilities.

On net monthly budget, it'd be more like 40%, but that includes maxed-out 401(k) and HSA, and doesn't count the two "third paychecks" a year.

I sure don't win the internets, but I have nothing to prove either.

wfrobinette
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Re: I spend 6.1% of my Gross income on rent

Post by wfrobinette » Thu Jun 08, 2017 10:42 am

WendyW wrote:'
Or 7.1%, if I also roll in utilities.

Do I win the internets? Or am I a spendthrift by Bogleheads standards ?
Trulia wrote:The US Department of Housing and Urban Development and many state housing authorities recommend that you spend no more than 30% of your gross (pre-tax) household income on housing and utilities. This means if you earn $50,000 per year, you should spend no more than $15,000 per year—or $1250 per month—on rent and utilities. The Mint, a budgeting and personal finance web site, recommends you spend no more than 33% of your gross (pre-tax) income on housing, meaning that on $50,000 you should spend no more than $16,667 per year—or $1388 per month—on rent and utilities.
...
Then there's the question of what average rents are in your market and how much rental inventory is available in your price range. In many more expensive markets, such as New York or San Francisco, high rents mean that residents may routinely pay more than 30% of their gross incomes for rental housing. In dense urban areas higher rents are a fact of life—unless you want to move outside the urban core.
I'm in a HCOL(N NJ) and all in I'm at 20.5%.

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VictoriaF
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Re: I spend 6.1% of my Gross income on rent

Post by VictoriaF » Fri Jun 09, 2017 11:46 am

I spend 20%-30% of my income on rent. The 20%-30% range represents different ways to calculate my retirement income. Furthermore, I spend 33% of the year traveling and paying for my sleep elsewhere. Using worst-case calculations, my annualized rent is 30% / 67% = 45% of income.

BUT,

I live in the Washington, D.C. metropolitan area and I am very happy here. And I can afford it. For me, the percentage is meaningless.

Victoria
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kathyauburn
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Re: I spend 6.1% of my Gross income on rent

Post by kathyauburn » Fri Jun 09, 2017 12:29 pm

I'm at 5.5%, but I own. The 5.5 is all condo fee. Includes everything. However, in retirement, I will not mind spending 33% on rent in Europe because the safety net is, well, safer there. In the U.S., I've always felt that I needed a bigger buffer because job loss can lead to health insurance loss or horrible health insurance, which can lead to catastrophic consequences for the money you have left. If you're going to get sick in the U.S. without insurance, you better hope it's an illness that kills you quickly. Sad.

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