If I make 112k income...how much should my rent be?

[Anonymous]

Thinking about divorce and wondering what I can afford...how much rent should I be looking at with my income?

Currently 25% of my income goes to retirement so my monthly take home pay is $4550.

How much is an average car payment?

[Anonymous]

Landlord here. To determine whether someone can afford my rentals I figure out if their gross annual income exceeds 40 times the monthly rent. So nothing over $2800 in your case (if the ($112K is gross not net.)

[Anonymous]

Anonymous wrote:Landlord here. To determine whether someone can afford my rentals I figure out if their gross annual income exceeds 40 times the monthly rent. So nothing over $2800 in your case (if the ($112K is gross not net.)

112k is gross.

[Anonymous]

Housing should not exceed 30% of your income, and you should be making 2-3 x monthly rent in income, depending on credit score, to get approved.

[Anonymous]

Sorry, it depends on what your other costs are, so you'll have to budget it out. Do you have kids? Debt? There are people who live on $40,000. If you wanted to live like them, other than rent, you could spend 3/4 of your net income on rent, but I wouldn't recommend it. Or if you want to spend large amounts on dining and travel, then you have to spend a lot less on rent.

[Anonymous]

Anonymous wrote:Housing should not exceed 30% of your income, and you should be making 2-3 x monthly rent in income, depending on credit score, to get approved.

30% of net or gross? I assume net? (This is not OP but I have a similar question)

[Anonymous]

Anonymous wrote:

Anonymous wrote:Housing should not exceed 30% of your income, and you should be making 2-3 x monthly rent in income, depending on credit score, to get approved.

30% of net or gross? I assume net? (This is not OP but I have a similar question)

Gross

[Anonymous]

I've always heard the 30% rule too. So $110k x 0.3 gives you your yearly rent, /12 to get monthly, $2800.

For cars, I've heard 10% for car payment, no more than 20% all in car expenses (insurance, maintenance, gas) which would be a car payment up to $916, all in at $1,833/mon. This seems REALLY high to me, but I drive an old paid off car lol.

If you're single you can likely get something well under these and throw more into savings/retirement.

[Anonymous]

OP here I am working out on a possible budget to look like this:

Rent: $2200
Utilities: $100
Car payment: $450
Car Insurance $100
Gas: $100
Groceries: $600
Cellphone: $180

So total: $3780.

I will have to decrease my retirement contributions so I have more wiggle room.

[Anonymous]

Anonymous wrote:OP here I am working out on a possible budget to look like this:

Rent: $2200
Utilities: $100
Car payment: $450
Car Insurance $100
Gas: $100
Groceries: $600
Cellphone: $180

So total: $3780.

I will have to decrease my retirement contributions so I have more wiggle room.

Way too tight. I’d keep it under $1400 for rent. You have no spending money. Cell phone is way too high. Car insurance too low. You forget clothing, extras, going out, car repairs, hair cuts, etc

[Anonymous]

If you don't have kids (or don't have full custody ) and don't need to worry about school districts you could ditch the car which would give you enough to rent a nice 1br with den or an OK 2br in a central part of DC that won't require a car.

Plus a central DC location will be much more conducive to dating if that's something you're ready for.

[Anonymous]

Do you need to pay child support? that can be a large factor

[Anonymous]

Anonymous wrote:Do you need to pay child support? that can be a large factor

No kids

[Anonymous]

Anonymous wrote:If you don't have kids (or don't have full custody ) and don't need to worry about school districts you could ditch the car which would give you enough to rent a nice 1br with den or an OK 2br in a central part of DC that won't require a car.

Plus a central DC location will be much more conducive to dating if that's something you're ready for.

My office is in Vienna so I need a car and to live nearby and all 1 bedrooms are around $2200.

[Anonymous]

Ok. Car should be cash, not monthly payment. Cell phone should be <$50. That saves you some money.