The U.S. Department of Housing and Urban Development (HUD) recommends that you should pay no more than 30 percent of your annual income on housing. However, an estimated 12 million renters and homeowners now pay more than 50 percent of their annual incomes on housing. How much are you spending?
Why does it matter?
According to HUD, spending more than 30 percent of your income on housing makes it more difficult to afford necessities such as food, transportation and health care. To live in a budget with higher housing costs, you will need to cut unnecessary expenses.
Are you looking for affordable rental housing?
Now that you know your rent goals, find housing that you can afford.
Already have housing?
If you already have housing and are paying more than 30 percent, learn how to track your expenses and stick to your budget.