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Rent or Mortgage. You should expect to spend between 25 to 30 percent of your net income each month on rent or mortgage. Landlords and property managers typically require you to make at least 2.5 to three times the rent to qualify as a tenant.
According to 2016 report from StreetEasy, [LINK?] the typical household in New York City actually spends more like 65 percent of its total income on rent. Thatâs terrifying! But although itâs common to break the 30 percent rule and spend the majority of your income on rent, it is ill-advised. Before you bite off more than you can chew and ink a deal for an apartment you canât afford, remember that there are practical ways of reducing your rent burden â like bunking up with multiple roommates or avoiding the brokerâs fee.