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I Make $20,000 a Year How Much Rent Can I Afford?
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You can afford up to $600 per month on rent. However, it is recommended to keep rental fee below $467 per month. Some landlords do not accept tenants with more than 1/3 of gross income on rent, which is $550.
How Much Rent Can I Afford on $20K
You can afford to spend $600 on rent each month.
Monthly Expenses
The cost of living varies from state to state and family to family. You should also make sure you factor in your monthly expenses and debts that you may have before deciding how much you should spend on rent. One should add up all the bills including credit cards, utilities, cell phones, transportation, loans, cable costs, insurance, and any other bills that you may have. Then subtract the total monthly expenses from your take home pay, which is your monthly salary after tax and other deductions.
Following is a table that shows you how much rent you can afford each month based on your monthy expenses if you make $20,000 per year in pre-tax income.
| Annual Income | Monthly Debt | Rent |
|---|---|---|
| $20,000 | $0 | $600 |
| $20,000 | $50 | $550 |
| $20,000 | $100 | $500 |
| $20,000 | $150 | $450 |
| $20,000 | $200 | $400 |
| $20,000 | $250 | $350 |
| $20,000 | $300 | $300 |
| $20,000 | $350 | $250 |
| $20,000 | $400 | $200 |
| $20,000 | $450 | $150 |
| $20,000 | $500 | $100 |
| $20,000 | $550 | $50 |
| $20,000 | $600 | $0 |
| $20,000 | $650 | $-50 |
| $20,000 | $700 | $-100 |
| $20,000 | $750 | $-150 |
| $20,000 | $800 | $-200 |
| $20,000 | $850 | $-250 |
| $20,000 | $900 | $-300 |
| $20,000 | $950 | $-350 |
| $20,000 | $1,000 | $-400 |
Taxes & Deductions
The tax rate may also have an effect on your ability to pay your rent. The tax rate on $20,000 will be lower if you have dependents and a family to take care, but your expenses will be higher. New graduates that are just starting their first jobs may be surprised to find out how much deductions there are on their salary. After you factor in all the expenses that you have each month, you can then get a fairly accurate estimate on how much you can afford to spend on rent with your yearly $20K income.
I make 20500 a year how much rent can I afford
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