Apartment rent vs income?

Question

Let's say someone has a salary of $70,000 but after paying taxes, they take home $54,000 (New Jersey). I've heard apartments typically want the rent to be no more than a third of your income. Would apartments consider a third of your income to be based on the $70,000 or the $54,000?

linkus86 · Accepted Answer

$70k.  And the reason the landlord requires tenants to make at least 3 times the rent is partly because they know the tenant needs to pay taxes!  Luckily in this case they only pay 23%.

garry · Answer

1/3rd of $70,000 , thats what you earn .

RICK · Answer

In most places the $70k

Landlord365 · Answer

They use your gross income not net.

? · Answer

Spending around 30% of your income on rent is the golden rule when you're trying to figure out how much you can afford to pay. ... On a median income, 30% should get you an apartment you can truly call home. At the same time, you should have money left to keep up with any debt you may have and contribute to your savings.

Anonymous · Answer

they usually go based on GROSS income (70K, so you can rent for up to 2000/month....which is about the minimum for a decent 2 bedroom in many areas w/ 1500 for a 1 bedroom)

babyboomer1001 · Answer

70.  It's based on your take home pay.

A Hunch · Answer

It's based on gross income (what you actually earn).
Not net income which is what you actually get (after tax and all other deductions)

? · Answer

Its always based on the before tax income.
After tax income varies from person to person depending on their circumstances, some people pay zero tax.

Pearl L · Answer

depends on the building

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Apartment rent vs income?

10 Answers