It’s a fairly typical “rule” in personal finance not to spend more than 30% of your income on housing or rent, which is probably why that’s what the study is using. You’re right it is a little conservative, and especially in cities most people have been going over that for quite a while. Some landlords will not even consider your application though if your income isn’t 3x the rent.
It’s a fairly typical “rule” in personal finance not to spend more than 30% of your income on housing or rent, which is probably why that’s what the study is using. You’re right it is a little conservative, and especially in cities most people have been going over that for quite a while. Some landlords will not even consider your application though if your income isn’t 3x the rent.