Do you know how much you can afford to spend on rent, or how much you ought to spend? Many Chicago apartment searches begin with a desire to move to a particular neighborhood, or a search for an apartment with a specific feature—like a great view or outdoor space. But what about rent?
Recent studies indicate that one in three Chicago apartment renters (and one in four renters nationally) spends more than half of their income on rent and utilities. Chicago apartment hunting is all about finding a good deal, so everyone's asking: "How much should I spend on rent?"
The general rule is that your monthly apartment rent (excluding utilities) should not exceed 30% of your gross monthly income. So, to help you budget effectively, we created this handy rent calculator. Use the formulas in this rent calculator to come up with an effective plan to help you budget for your next Chicago apartment.
Wondering if you should rent vs. buy? This calculator may act as a guiding beacon. Domu arrives at the rental ranges above using a basic formula that produces a lower rental range, a middle range and higher range. The ranges in this rent calculator don’t factor in any other debts that renters have.
How Apartment Landlords Can Use Our Rent Calculator
Chicago landlords searching for a way to double-check an income range to match their apartment’s listing price can use this rent affordability calculator. Before investing time and effort into the tenant screening process, this can be a good preliminary check on how much rent tenants can afford.
Landlords who are in the process of setting up their apartment listing can benefit from this simple tool. Landlords may even look at this as a “How Much Rent to Charge?” calculator.