How do you decide on max rent based on annual income?

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I do the opposite. Cheapest rent in a nice area with the amenities/features I want.

The general guideline is housing should be at most 28% of gross income.

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I do 25% of my monthly take home.

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They say rent should be 20-30% of your income. But you have to factor in if you need a car, have debt, have an emergency fund, good savings, investments, decent 401k. If all of those are in great shape and you don’t need a car, you can be more generous and spend 30%. If they are not, you should probably be at 15% or less.

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1/4 of your after tax income.

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This is what I was taught.

Factor in the size of your cash cushion. For many people, rent or mortgage is their largest single fixed expense. Should your employment situation change, you will need to make the rent while you're in transition.

about 20% -25% of gross is generally the range in HCOL cities, i would even argue up to 30% maxxxx if the apartment has great features amenities (no roomate) in a hcol city.

I needed a car when I first started out, so I set my limit at $725, or 25% of my take home pay. If I didn't need a car, I would've been comfortable paying up to 40% of take home.

Of course, prices for the area and your income both matter. My HHI today is 5x my income as a new grad, but I live in the same basic area. There is zero chance I would spend $3,625 just to put a roof over my head (max mortgage I'd consider is probably $3k a month, but $1.5k is :chef's kiss:)

Take your gross salary and divide by 50. That’s your maximum monthly payment.

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