First Apartment: What Can You Comfortably Afford?
Understanding your housing budget
Before you sign a lease, it’s important to know what you can actually afford, not just what rent costs in your area. This isn’t just about whether you can pay the rent each month. It’s about whether you’ll still be able to live, save, and reach your goals after you do.
This guide will walk you step-by-step through how to calculate what your real price range is and help you avoid ending up house-poor before you even unpack.
Start with Your Take-Home Pay, Not Your Salary
If you earn $40,000 a year, you might think you have $3,333/month to spend. But that’s your gross pay. What actually hits your bank account (your net pay) is usually much lower after taxes, insurance, and retirement contributions.
Tip: Use your monthly take-home pay as your starting point. That’s what you really have to work with.
Stick to the 30% Rule (With Adjustments)
The common rule is to spend no more than 30% of your take-home pay on rent. But that’s just a guideline not a hard rule, you may need to adjust depending on your goals and debt.
Here’s a better breakdown:
Monthly Take Home Pay | Comfortable Rent Range |
|---|---|
$2,000 | $500-$600 |
$2,500 | $625-$750 |
$3,000 | $750-$900 |
$3,500 | $875-$1,050 |
$4,000 | $1,000-$1,200 |
If you’re carrying a lot of debt, aiming for the lower end is smarter. If you’re debt-free or have a roommate, you may be able to spend a little more.
Build a “Living on Your Own” Budget
You need to know what else you’ll be paying for besides rent. Here’s a list of monthly expenses that come with living alone:
Fixed Essentials:
Utilities (electric, gas, water, trash)
Internet
Renter’s insurance
Car payment + insurance
Groceries
Phone bill
Variable Essentials:
Gas or public transit
Household supplies
Medical/health expenses
Loan payments or credit card minimums
Extras + Goals:
Savings/emergency fund
Subscriptions
Streaming or entertainment
Eating out
Travel or fun spending
Use this list to plug your own numbers in and see how much of your income is already spoken for before you commit to rent.
Plan for Upfront and One-Time Costs
When you’re calculating what you can afford, don’t forget the one-time costs that come before you even move in:
Expense | Typical Range |
|---|---|
Security Deposit | Equal to 1 months rent |
Application Fee | Cell 2-2 |
First Month's Rent | Required before move-in |
Pet Deposit | If applicable |
Moving Costs | $0-$500 (depending on help and distance) |
Furniture/Essentials | $300-$2,000 |
If you don’t have much saved, consider delaying your move until you can cover these without relying on credit cards.
Use Tools to Check Affordability
Spreadsheet or budget app: simple but effective for testing numbers.
Zillow’s Affordability Tool : quick estimate based on income.
Equity Bank’s Budgeting tool (within online banking): lets you track income/expenses and set rent parameters.
If you feel stuck, you can always reach out and I can walk you through a sample budget and help you understand what’s realistic.
Living on your own should give you freedom, not financial anxiety.
If your rent leaves you with no money for savings, emergencies, or the life you want to build, it’s probably too high. A cheaper place that gives you financial breathing room is always a better choice than a trendier apartment that stretches your budget. Your future self will thank you.
Next, read: First Apartment: How to Get It for the step-by step on finding, applying for and moving into your place.
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