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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.
As for just how big a percentage of your income that housing budget should be? It all depends on whom you ask. Income used for housing: What others say The traditional model: 35 percent/45 percent of pretax income. In an article on how the mortgage crash of the late 2000s changed the rules for first-time home buyers, the New York Times reported: