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  • Writer's pictureMy Property Man

How much rent can I afford?

New York City is known for its pizza, fashion, real estate market. If you are in the market for renting an apartment you should know what you can afford. You don't want to be house poor and not enjoy the better things in life. Following a simple rule should give you an idea of what you can afford.

Rent to income ratio should be at least 40 times your gross annual salary. Landlords, property managers, and brokers look for tenants that can comfortably make the rent payments to protect their investments/clients' interests. For example, if you are looking for a property listed for $2,000 you should be making at least $80,000 a year before taxes.

Some landlords might bend the rules if you have excellent credit, no liabilities, and some money in the bank. It also depends on the landlord, if you are renting from a large building with many units or someone house hacking.

Don't forget the other expenses such as deposits, transportation, and moving expenses. Most landlords expect the first, last, and security deposit when you sign the contract. The distance between where you work/commute also makes a big difference in the transportation costs. Weigh them in when you are making your decision. Moving expenses are based on the items you are moving, the distance, and the difficulty. For example, if you are moving one or four flights of stairs without an elevator.

Following these recommendations should help you figure out what you can afford comfortably now and in the future.

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