Poll: BHs who rent - what % of gross do you spend on rent?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
CheeseFlip
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by CheeseFlip » Sat Jan 13, 2018 6:33 pm

30%. Single income household.

We don't like renting, but the job requires moving every 1-3 years.

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ram
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by ram » Sat Jan 13, 2018 7:30 pm

It was 25% when I was a medical resident and wife was SAHM.
Later it was 3% of combined income when I was an attending physician and wife was a medical resident and we were living in an old house adjoining the medical complex. (subsidized by her employer). Our current house would rent for 6 to 8% of our current combined income.
Ram

investingdad
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by investingdad » Sat Jan 13, 2018 8:56 pm

When I was single 20 years ago, I paid 16% of gross for a single bedroom apartment.

33k a year, 450 a month rent.

Slowtraveler
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Slowtraveler » Sat Jan 13, 2018 9:46 pm

.76%

Will likely move to 1-2% down the line.

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flamesabers
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by flamesabers » Tue Jan 16, 2018 11:44 am

About 19% for a two-bedroom apartment.

pross
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by pross » Tue Jan 16, 2018 11:50 am

14.4 percent, outer borough of NYC

HRPennypacker
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by HRPennypacker » Tue Jan 16, 2018 11:51 am

Slowtraveler wrote:
Sat Jan 13, 2018 9:46 pm
.76%

Will likely move to 1-2% down the line.
Teach me, Maestro...

PFInterest
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by PFInterest » Tue Jan 16, 2018 11:54 am

10%. HCOL.

MrNewEngland
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by MrNewEngland » Tue Jan 16, 2018 12:20 pm

I’m shocked at how low most people’s numbers are.

ny_knicks
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by ny_knicks » Thu Jan 18, 2018 9:29 am

VHCOL - Manhattan DINK

~13% for one bedroom apartment

Could have gone lower but chose to go with slightly higher end building with close proximity to work

scotgirl100
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by scotgirl100 » Thu Jan 18, 2018 12:07 pm

22.5% in South Loop, Chicago

Jags4186
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Jags4186 » Thu Jan 18, 2018 12:09 pm

HRPennypacker wrote:
Tue Jan 16, 2018 11:51 am
Slowtraveler wrote:
Sat Jan 13, 2018 9:46 pm
.76%

Will likely move to 1-2% down the line.
Teach me, Maestro...
$10,000,000 income, $6333/mo rent :wink:

nimo956
Posts: 727
Joined: Mon Feb 15, 2010 6:07 pm

Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by nimo956 » Thu Jan 18, 2018 12:10 pm

I live is Boston and spend 13% on rent+util. The key is to split the cost with a roommate or SO.
50% VTI / 50% VXUS

ty3657
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by ty3657 » Thu Jan 18, 2018 12:14 pm

11% in HCOL - dual incomes, 1 bedroom we've been in for 5+ years certainly helps.

HRPennypacker
Posts: 71
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by HRPennypacker » Thu Jan 18, 2018 12:16 pm

Jags4186 wrote:
Thu Jan 18, 2018 12:09 pm
HRPennypacker wrote:
Tue Jan 16, 2018 11:51 am
Slowtraveler wrote:
Sat Jan 13, 2018 9:46 pm
.76%

Will likely move to 1-2% down the line.
Teach me, Maestro...
$10,000,000 income, $6333/mo rent :wink:
Oh, of course. I'll get right on that. How silly of me.

bigdoofus
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by bigdoofus » Thu Jan 18, 2018 12:25 pm

11% in NYC

nimo956
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by nimo956 » Thu Jan 18, 2018 12:28 pm

MrNewEngland wrote:
Tue Jan 16, 2018 12:20 pm
I’m shocked at how low most people’s numbers are.
I think that most Bogleheads probably focus on building a rough budget so they decide how best to direct their money. Getting the top line items right makes a huge difference in being able to accumulate savings.

I don’t make a large salary, but through directed effort, I spend the following % of gross income:

Savings- 47%
Taxes- 21%
Rent + Util- 13%
Vacation/Restaurant/Shopping/Hobbies- 12%
Insurances (Med, Dental/Vision, Renters, Disability)- 4%
Groceries/Gas- 3%
50% VTI / 50% VXUS

dziuniek
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Location: Corrupticut

Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by dziuniek » Thu Jan 18, 2018 12:56 pm

14%

Dual income.
Connecticut Suburbs.

2Birds1Stone
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Location: New York

Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by 2Birds1Stone » Thu Jan 18, 2018 1:18 pm

Exactly 10% of gross salaries.

That includes all utilities in a small 1 bedroom apartment.

sawhorse
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by sawhorse » Sun Jan 28, 2018 9:35 am

MrNewEngland wrote:
Tue Jan 16, 2018 12:20 pm
I’m shocked at how low most people’s numbers are.
Same here. 10% in New York City?! The average is 65%.

https://www.nbcnewyork.com/news/local/N ... 97101.html

People here must make a lot of money. Even $1300 for a room in a shared apartment means $156k gross if you're only spending 10%.

Goinganontoday
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Goinganontoday » Sun Jan 28, 2018 9:54 am

When we moved in, rent was 34% of gross (single income). After nearly four years with the same rent (I love our landlord), it's around 10%.

We are saving for a down payment, but refuse to move until our youngest is in kindergarten because the location of our rental makes it a dream spot until then.

atomicrc11
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by atomicrc11 » Sun Jan 28, 2018 9:58 am

Goinganontoday wrote:
Sun Jan 28, 2018 9:54 am
When we moved in, rent was 34% of gross (single income). After nearly four years with the same rent (I love our landlord), it's around 10%.

We are saving for a down payment, but refuse to move until our youngest is in kindergarten because the location of our rental makes it a dream spot until then.
We're pretty much in the same position. 10 years ago when we moved to the Boston area we were at 35% of gross income. Now we moved into a larger unit with the same landlord, 15% of gross. It's just too good a location to move until we need to think about public schools.

kaeltor
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by kaeltor » Sun Oct 07, 2018 9:42 pm

How the HECK are these people spending so little on rent?

5%? How is that even possible? Do you live in a dumpster?

How are are you people calculating it? based on Gross Annual Income? Monthly gross? Net income?

Please someone explain because these percentages can vary wildly depending on net or gross yearly/monthly.

I calculate it based on Monthly NET Income.

CarpeDiem22
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by CarpeDiem22 » Sun Oct 07, 2018 9:48 pm

11.6% on two incomes.

Surprised by the frequency of 11% repeated here. Not sure if there is any logic to it.

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Rob5TCP
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Location: New York, NY

Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Rob5TCP » Sun Oct 07, 2018 9:55 pm

Living in NYC (Manhattan) for a number of years. Being self employed my income can vary greatly .
At one time it was over 35%; now closer to15-20%. In a great year it can drop to 8-10%.
(HCOL - near the East Village --
rent stabilized, but certainly not inexpensive for anywhere but S.F. & NYC).
Last edited by Rob5TCP on Mon Oct 08, 2018 12:44 pm, edited 1 time in total.

Slacker
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Slacker » Sun Oct 07, 2018 10:08 pm

When we were renters earlier this year we spent less than 8% of gross on rent for a 4bdrm/2.5bath 2800sq ft home with a pool in AZ. AZ is too hot, and the low cost of living was not enough enticement to stay there (we even accepted a 40% increase in income taxes to get out of the heat).

Slacker
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Slacker » Sun Oct 07, 2018 10:11 pm

kaeltor wrote:
Sun Oct 07, 2018 9:42 pm
How the HECK are these people spending so little on rent?

5%? How is that even possible? Do you live in a dumpster?

How are are you people calculating it? based on Gross Annual Income? Monthly gross? Net income?

Please someone explain because these percentages can vary wildly depending on net or gross yearly/monthly.

I calculate it based on Monthly NET Income.
The thread title states Gross so I calculated (monthly rent + rental taxes) / (gross income for both of us) = less than 8% (close to 7.5%).

We each earn low six figures and AZ is very low priced. The income taxes are very low in AZ too. I did not include any of our bonuses or overtime pay, just base salary.

kaeltor
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by kaeltor » Sun Oct 07, 2018 10:15 pm

Slacker wrote:
Sun Oct 07, 2018 10:11 pm
kaeltor wrote:
Sun Oct 07, 2018 9:42 pm
How the HECK are these people spending so little on rent?

5%? How is that even possible? Do you live in a dumpster?

How are are you people calculating it? based on Gross Annual Income? Monthly gross? Net income?

Please someone explain because these percentages can vary wildly depending on net or gross yearly/monthly.

I calculate it based on Monthly NET Income.
The thread title states Gross so I calculated (monthly rent + rental taxes) / (gross income for both of us) = less than 8% (close to 7.5%).

We each earn low six figures and AZ is very low priced. The income taxes are very low in AZ too. I did not include any of our bonuses or overtime pay, just base salary.
I live in AZ too, I am not six figures but close to it. I spend around 16% currently of my gross monthly (rent+utilities and everything), but I split rent.

That being said, I'd like to move on my own, that'd bump it up to ~22 % even on a regular non-luxury 1 bedroom.

Last question, how is it useful at all to calculate it based on Gross Income? It won't be a realistic number...

Slacker
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Slacker » Sun Oct 07, 2018 10:27 pm

kaeltor wrote:
Sun Oct 07, 2018 10:15 pm
Slacker wrote:
Sun Oct 07, 2018 10:11 pm
kaeltor wrote:
Sun Oct 07, 2018 9:42 pm
How the HECK are these people spending so little on rent?

5%? How is that even possible? Do you live in a dumpster?

How are are you people calculating it? based on Gross Annual Income? Monthly gross? Net income?

Please someone explain because these percentages can vary wildly depending on net or gross yearly/monthly.

I calculate it based on Monthly NET Income.
The thread title states Gross so I calculated (monthly rent + rental taxes) / (gross income for both of us) = less than 8% (close to 7.5%).

We each earn low six figures and AZ is very low priced. The income taxes are very low in AZ too. I did not include any of our bonuses or overtime pay, just base salary.
I live in AZ too, I am not six figures but close to it. I spend around 16% currently of my gross monthly (rent+utilities and everything), but I split rent.

That being said, I'd like to move on my own, that'd bump it up to ~22 % even on a regular non-luxury 1 bedroom.

Last question, how is it useful at all to calculate it based on Gross Income? It won't be a realistic number...
Not sure, I was just answering the OP.

It may be difficult to make any useful comparisons without knowing someone's total budget, IMHO. Otherwise, is it just for bragging rights?

I suppose as far as data points go, mine is probably even less useful since I keep my same salary whether I live in a LCOLA or HCOLA and can move anywhere in the country with the same job. Otherwise, it may be semi useful to know what areas give good income vs housing costs.

Now how would one go about determining Net Income? If I only get the 401K match, my net is higher than if I max my 401K and some people have better health plans (lower cost) than others or they may choose to have a very expensive all inclusive health care plan. What about people who are state workers with a pension -> lower net income vs someone without a pension payment...so therefore, I think a full budget may be needed to actually make any use of any of these numbers.

SoAnyway
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by SoAnyway » Sun Oct 07, 2018 10:39 pm

kaeltor wrote:
Sun Oct 07, 2018 9:42 pm
How the HECK are these people spending so little on rent?
5%? How is that even possible? Do you live in a dumpster?
How are are you people calculating it? based on Gross Annual Income? Monthly gross? Net income?
Please someone explain because these percentages can vary wildly depending on net or gross yearly/monthly.
I calculate it based on Monthly NET Income.
6.6% of gross. HCOL East coast area and self-employed, so lower % if I have a better-than-average year. I live solo in a very comfortable 1BR/1BA that meets all of my needs, with gas heat/hot water/cooking gas included, and pool/lovely landscaped community. IOW not a "dumpster" to use your words. It helps to have a high gross/net, few needs, few wants, and commitment to LBYM. Just sayin'.

Goal33
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by Goal33 » Sun Oct 07, 2018 10:40 pm

about 15% in HCOL Bay Area (East Bay)... single income married couple... wife looking for a job and should be around 11% once she finds something.
A man with one watch always knows what time it is; a man with two watches is never sure.

mille424
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by mille424 » Sun Oct 07, 2018 11:51 pm

15.5% of gross dual income for a 1br in bay area.

somekevinguy
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by somekevinguy » Mon Oct 08, 2018 12:58 am

11% of Gross income for dual income family for SFH (4/2) in VHCOL Bay Area (peninsula)

SelfEmployed123
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by SelfEmployed123 » Mon Oct 08, 2018 5:45 am

Was 19% two years ago but is currently 9% due to an increase in income. Dual income family of 3. We live in a MCOL East Coast city.

nalor511
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Re: Poll: BHs who rent - what % of gross do you spend on rent?

Post by nalor511 » Mon Oct 08, 2018 6:20 am

VHCOL, even with rent control it's 35%, but was a much lower % while working, more like 8%

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