How much rent can I afford?

When searching for the perfect Chicago apartment, future renters are filled with questions: What is the best neighborhood? How important is my credit score? What should I pay attention to during the walkthrough? And most importantly, “How much rent can I afford?”

At Domu, we know that searching for the perfect apartment can be overwhelming, especially when it comes to budgeting. That's why we've created this comprehensive guide to help you determine your ideal rental price range and the financial nuances of renting an apartment in Chicago.

Guided by our handy rental calculator, you’ll soon be on your way to searching for Chicago apartments that fit your criteria. At Domu, we’re focused on making your life easier by saving you time and energy that can be better spent daydreaming about your future life in Chicago.

Let’s get started!

Discover Your Rent-to-Income Ratio with Our Rent Calculator

First, let's talk about the magic number that Chicago landlords love to see: the rent-to-income ratio. Historically, renters needed an annual income of at least three times the monthly rent. However, with rising rental prices, many landlords now require a 3.5x rent-to-income ratio (or a maximum of 28% of your income going towards rent) to ensure you can comfortably afford the rent for the lease term.

Our rent calculator takes the guesswork out of the equation. Simply input your annual income, and our tool will provide you with a recommended rental budget based on the 30% rule, which states that your monthly rent should not exceed 30% of your gross income.

Combining Incomes for Shared Living

Planning on living with roommates? Great idea! Our calculator allows you to combine incomes to determine your collective rental budget. Pooling your resources can open up a wider range of apartment options, from spacious floor plans to luxurious amenities. By splitting costs, you might be able to upgrade from that ground-floor studio to a penthouse suite overlooking the lake! Dream big!

Don't Forget Additional Rental Costs

When using our rent calculator, keep in mind that the 30% rule only accounts for the base monthly rent. As a renter in Chicago, you'll also need to budget for additional expenses, such as:

• Application fees: Most landlords charge a non-refundable application fee, typically from $50 to $100 per applicant, to cover the cost of background and credit checks.
• Security deposits and move-in fees: Security deposits are usually equal to one month's rent and are refundable at the end of the lease term, provided the apartment is returned in good condition. Some landlords may also charge a non-refundable move-in fee, which can be from $100 to $500, to cover administrative costs or apartment preparation.
• Parking costs: If you have a car, parking expenses are all over the place and highly dependent on the neighborhood and type of parking. In some areas, there’s free street parking, while in others, you might need to rent a dedicated garage space, which can cost anywhere from $100 to $500 per month.
• Pet fees (if applicable): If you have a furry friend, be prepared to pay extra. Many pet-friendly buildings charge a one-time pet fee (usually $250 to $500) or a monthly pet rent ($25 to $100) to cover potential wear and tear and cleaning costs.
• Utility bills: Renters are often responsible for paying utilities like electricity, gas, water, and internet/cable. These costs can vary depending on your apartment size, usage habits, season, and your chosen providers. On average, expect to budget around $100 to $250 per month for utilities.

For a more detailed breakdown of these costs and tips on how to manage them, check out our "Cost of Renting in Chicago" guide.

To maintain a comfortable financial cushion, we recommend aiming to spend less than 30% of your income on rent, especially if you have other significant monthly expenses like student loans, car payments, or a deep-dish pizza addiction.

Calculate Before You Search!

Before you start falling in love with that dreamy Lakeview loft or that trendy River North high-rise, let's talk about the cold, hard truth: your income is the ultimate gatekeeper to your Chicago apartment dreams.

It's not just about staying within your budget (although that's definitely important). Landlords in the Windy City are sticklers for the rent-to-income ratio, meaning they won't even consider renting to you if you're trying to live beyond your means. Trust me; you don't want to be that person who falls head over heels for an apartment only to have your application rejected because your income doesn't measure up.

But fear not! By using our rent calculator and following the rent-to-income ratio, you can fine-tune your search and find the perfect pad that fits both your budget and your lifestyle. Here's what you need to consider:

Location, Location, Location

Downtown Chicago is where all the action is, from the stunning architecture to the righteous nightlife. But, as with most things in life, this excitement comes with a hefty price tag. If you're working with a tighter budget, don't worry! There are plenty of affordable options in many of Chicago's neighborhoods. You might need to travel a bit to get to the major attractions, but hey, that's what the CTA is for, right?

Rental Amenities: The Perks of City

Living When it comes to apartment amenities, Chicago has it all. Maybe you can’t live without in-unit laundry, or your cooking skills only appear in a kitchen with high-end finishes and stainless-steel appliances, or maybe your favorite part of the day is that post-work workout. Whatever your needs, there’s a rental for you. But remember, the more luxuries you want, the more you'll need to shell out each month. So, think carefully about which amenities are must-haves and which ones you can do without.

Views and Outdoor Space: A Breath of Fresh Air

In a city known for its stunning skyline and gorgeous lakefront, it's no surprise that many Chicagoans dream of waking up to a breathtaking view. Whether you're hoping to see the shimmering Lake Michigan from your patio or catch a glimpse of the Willis Tower from your bedroom window, those jaw-dropping sights often come with a premium price tag. And if you're lucky enough to snag an apartment with outdoor space, like a balcony or rooftop access, be prepared to pay a bit more for the privilege.

Building Amenities and Services: Living in the Lap of Luxury

If you're looking for a truly luxurious living experience, Chicago has plenty of high-end buildings that offer a range of premium amenities and services. From 24-hour concierge and valet parking to on-site dry cleaning and pet grooming, these extras can make your life a whole lot easier (and a whole lot fancier). But, as you might expect, these perks come at a cost. So, if you're eyeing a building with all the bells and whistles, make sure your budget can handle the added expenses.

Explore, Research, and Make an Informed Decision

Now that you know how your income affects your apartment options, it's time to put on your research hat. Check out our "Moving to Chicago" guide to get the inside scoop on the types of apartments available in different neighborhoods and their respective rental prices. This in-depth resource will help you understand what you can realistically afford and which areas of the city best fit your lifestyle and budget. Remember, knowledge is power when it comes to apartment hunting in Chicago. By using our rent calculator, understanding the rent-to-income ratio, and researching your options, you'll be well-equipped to find the perfect place to call home.

The Role of Credit Scores in Renting Apartments in Chicago

Alongside your rent-to-income ratio, Chicago landlords heavily weigh your credit score when evaluating your rental application. A strong credit score shows that you are good with money and improves your chances of securing your desired apartment. Depending on the type of rental (luxury penthouse vs budget apartment) and the property owner (major rental company vs. homeowner), your credit score may be suitable for one place and not another.

Before applying for any apartments, check your score and make sure it's up to snuff, otherwise, you may have to take on a co-signer, offer up a larger security deposit, or have a talk with your future landlord explaining the situation.

If you're unsure where you stand or need advice on boosting your credit, our Credit Score guide offers expert tips and actionable steps to help you confidently navigate the rental process.

Attention, Landlords: Streamline Your Tenant Search with Our Rent Calculator

Landlords listing their apartments on Domu can also leverage our rent calculator to quickly pre-qualify potential tenants. By determining the minimum income required for your rental property, you can efficiently screen applicants and find the perfect match for your apartment.

Find Your Dream Apartment with Domu's Rent Affordability Calculator

Now that you understand what to expect financially and how much rent you can afford, it's time to start your Chicago apartment hunt. Use Domu's apartment affordability calculator to set your budget, and then browse our extensive listings to find the perfect place to call home!