What’s the Right Rent vs. Salary Ratio for Chicago?
A Common Question We are Asked is What’s the Right Rent vs. Salary Ratio in Chicago?
If you’re wondering how much rent you can afford in downtown Chicago, we’re here to help.
When looking for a new apartment in downtown Chicago, there are a few factors that most landlords or property management companies consider when approving you for an apartment. Most of them require tenants to earn at least three times the monthly rent in gross income to qualify for that apartment. For example, if you wanted to rent a $2,000 jr one-bedroom apartment, you would need to earn at least $6,000 per month. You’ll need proof of your earnings which can be done by showing a monthly pay stub. Don’t worry, if you are starting a new job, an offer letter will do too!
The 33% Rule:
Our brokers and leasing agents advise our clients to not spend more than 33% of their monthly income on rental housing. It’s okay to stretch a little bit here or there, but that percentage is a very good base to start from. If you have any further questions on what you can afford, our brokers would be happy to help you figure out your price point!
Base Rent + Utilities + Parking = The Whole Picture:
It is important to understand all of the monthly fees you will be responsible for in addition to the base monthly rent. These expenses add to your bottom line housing budget and include utilities, parking, pet rent, and security deposits. We recommend using a free online budgeting tool, such as Mint.com, to help keep track of monthly expenses. When you work with the Luxury Living Chicago Realty team, we help you put together a comprehensive picture, so you know what you will be spending on housing each month.
Still have questions about renting apartments in downtown Chicago? Click the link below for our complete guide!
Curious about how apartment finders get paid? Read our blog post about how apartment finders get paid.
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