How do I know how much rent I can afford in Columbus? Use this formula to find out
In case you haven’t noticed: it is expensive to be alive these days. Rising prices and inflation have had a significant impact on all areas of life and the housing market has arguably, suffered the most.
For consumers who are opting out of buying a house, renting could be a good solution. But do you know what you need to make to rent the average two-bedroom apartment?
Rent should make up approximately 30% of your income
To calculate what your rent should be, multiply your gross income, before taxes, by .03 and you should get the ideal number for rent. This rule of thumb has been around since 1981 following a study done by the US government. The study found that people who paid higher than 30% of their gross income were “cost burdened” so that number became standard practice, according to Chase Bank.
The average two-bedroom apartment in Columbus is approximately $1,300/month.
There is a range, of course, but overall, tenants are paying between $1,000 and $1,500. Of course rates vary based on several factors: location, size and quality of life at the property. And this number does not include rental houses of any size.
How much do I have to make to afford to rent in Columbus?
Using the 30% method, for an apartment that is $1,300/month, the renter would have to make at least $47,000 a year. The 2022 Census estimates that the median household income in Columbus is $54,561. This number is wildly relative, and that number could feel high or low based on your respective circumstance or career path.
What other factors must be considered?
Forbes estimates that the total energy bill for Columbus is roughly $149.68 and phone bills hover around $190. Take into account daycare for one child can be as high as $711 a month, often higher, and that 30% looks more unreasonable than ever. These numbers are only a fraction of what tenants will have to factor into their monthly budget.
What do I do if I can’t pay 30% of my income?
Chase recommends adopting the popular 50/30/20 rule. This rule suggests “spending 50% of your monthly income on essential expenses such as rent, monthly bills and groceries, spending 30% on non-essential purchases such as going out to eat, and putting 20% into your savings account.”
This story was originally published April 9, 2024 at 2:12 PM.
