Calculating Your Apartment Budget

By + on August 20, 2008 in Apartment Guide
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Making your Budget

Once you have your list of desired location and amenities, it is now time to find an apartment based on your budget. If you have not already closely examined and organized your budget, moving can be a good opportunity to apply some basic rules and maximize your paycheck.

Make sure you can live comfortably within your means. Apartment rents are usually your highest expenditure and it’s no use having a great luxury apartment with no furniture. Furthermore, trying to stretch your finances on rent can have devastating consequences, including ruining your finances and forcing you into debt. It will cost more money to break a rental lease that you cannot afford.

Start by making a list of your income and expenses. It is easiest to do this on a monthly basis, since rent, your biggest expense, is on that basis. You can use an excel spreadsheet to make two columns, money coming in and money going out.

Monthly Income

Income sources may include:

  • After tax salary, wages and tips from your job
  • Interest, dividends and capital gains from investments
  • Royalties, partnerships, trusts
  • Alimony

Be sure to account for taxes, retirement savings and other withheld amounts. Include expendable income only.

Monthly Expenses

Organize your monthly expenses by dividing them into the following categories:

  • Mandatory Expenses (fixed and variable)
  • Optional Expenses (fixed and variable)

Some expenses will fall into both categories, such as food, recreation, home furnishing, etc, but it should give you an idea of how to can arrange your checkbook to make the most out of your new move.

Look back through your checkbook or credit card statements to identify your regular expenses and identify when and where you tend to spend the most money. Taking a look at ATM cash withdrawals should also give you a good idea of how much you spend on other expenses.

Fixed Expenses

Fixed Expenses are regular payments that you must pay. These include things such as:

  • Rent for your new apartment. Your rent should be about 25% of your expendable income
  • Utilities and Telephone, cell phone, internet and cable costs
  • Car Payments, including insurance and maintenance
  • Debt payments (loans, credit cards)
  • Medical and Dental insurance and all regular medical costs such as medication, physical therapy
  • Savings (how much you put aside for the long term or rainy day fund)
  • Renters Insurance, which covers your personal belongings in the event of fire or theft
  • Furniture (renting or buying for a new apartment)
  • Clothing
  • Transportation (gas, bus and train fares, tolls)
  • Storage unit rental
  • Food
  • School and child care
  • Gym or exercise costs
  • Union dues
  • Alimony and child support

For most, rent will be the highest expense, usually around 20-30% of income. Other good targets for estimating your expenses are food, (8-15%), health (5-19%), clothing (5%) and entertainment and recreation (5-10%).

Variable Expenses

These costs are irregular costs, but can still be predicted and should be included in your budget under more precise terms than ‘other’. These costs include:

  • Rental deposits (hopefully you can get your deposit back and transfer most of this sum to your new landlord)
  • Moving costs
  • Entertainment (movies, concerts, nights out)
  • Restaurants
  • Recreation (weekend activities)
  • Vacations
  • Children’s expenses (toys, cribs, tree houses, parties)
  • Furniture
  • Legal expenses
  • Emergencies (health and family situations, natural disasters, unemployment, etc.)

Once you have your list enumerated and labeled as mandatory and optional, compare your expenses with your income. A good rule is to have your expenses be at least 10% less than your income so you can have some wiggle room.

If your budget does not come out balanced, you are going to reexamine your expenses and figure out where you can make cuts. Take a look at your optional items, (most likely your entertainment and recreation expenses) and stick to your new budget!

Rental Budget Constrained?

When examining your largest expense, rent, you may find that your rental budget is constrained. It is better to find this out before you start looking at apartments than on the first of the month.

Be sure to check to see how much you are going to be expected to pay up front. Some apartments require first and last month’s rent and a security deposit. Make sure that this up front expense won’t leave you in hole. Security deposits can range from $500 to $2000, depending on your market.

Moving Forward with Your Apartment Search

Now that you have all your lists and budget figured out, you can start your apartment search armed with your relevant information. You can begin to peruse listings using internet sites such as MyNewPlace and begin preparing Questions to ask Landlords.

38 Responses to Calculating Your Apartment Budget

  1. nidia April 18, 2011 at 6:09 am #

    I am desperate in finding a very low income house for my parents, their social secury income is $400.00 each thats without paying food or bills.

  2. Earlina April 22, 2011 at 2:57 am #

    I am suppoed to be moiving out of mother house by june and unfornatly I workgin income is 300- 400 doolars a month need a assitance of finding a appartment .. our no builds paid Thanks.

  3. Washington May 1, 2011 at 2:21 am #

    Need help finding a housing

  4. CYNTHIA MCCLAIN May 15, 2011 at 9:00 pm #

    I NEED A APARTMENT ASAP LIKE I NEED MY RENT TO BE $300-$400 A MONTH IF ANYBODY KNOW PLEASE CONTACT ME AT 646-400-8385

  5. Nadine Francis May 23, 2011 at 2:17 pm #

    Need an apartment at the rent of $500 dollars. My SS
    is 8l4.oo. Can you help. I would like to live in Astoria,NY

  6. mano.sonia May 24, 2011 at 6:45 am #

    on great article i impressed to read it ,,,, I NEED A APARTMENT on $1500 dollars

  7. ashlee perry May 29, 2011 at 12:10 am #

    hi im doing everthin on my onw i have 3 kids in we have no where to go we live form house to house in we dont now wat to do in me in my kids need help

  8. Jay July 11, 2011 at 5:52 pm #

    I need an apartment that would go by my income after taxes. or something in the lind of 900-1000

  9. alenianana July 13, 2011 at 4:56 pm #

    niadina check the low income housing….based on income, medical expenses,etc.

  10. Valerie Colf July 15, 2011 at 11:42 pm #

    I’m signed up for the new Section 8 in King County, but, I can’t put all my eggs in one basket. Please help me with Pet Friendly and cheap housing.

  11. Janet Graysonja July 24, 2011 at 7:30 am #

    I am looking for a place in north Wilmington a place I can aford for low income housing for $400- $500.

  12. patty longo July 28, 2011 at 11:27 am #

    Hi I am looking for apartment for low income in good neighborhood. Single mom who has lost three jobs and is making less then half of what i was making.

  13. Joanne Galatioto January 15, 2012 at 11:25 am #

    I am looking for an apt. in Everett,MA. I need at least 3 bedrooms I can only 1200 t0 1400 with a stretch I need it as soon as possible. There are 6 people in my family.

  14. Ashley Talley February 17, 2012 at 2:31 pm #

    I prefer a 1 bedroom if one comes available I can be reached @ 301-267-0140 thanks alot

  15. Billy Streeter lll April 15, 2012 at 7:52 am #

    Just need small apt. 1 bedroom,on Wilmington Island. work at the Wilmington Island Club. 300 to 400 a month.

    Billy

  16. james pettit April 17, 2012 at 10:41 pm #

    need aptment in downtown long beach. have mother and little brother.really desperate we can only afford 500$ a month.please help we are homeless and living on the street.if you have a place please message me at meklowhite@yahoo.com.

  17. Rossana Hamad May 19, 2012 at 10:17 am #

    Thank you PBS for a night at the Met at HOme!!Lucia kept me spellbound!! The subtitles helped a lot!

  18. Joan May 19, 2012 at 1:12 pm #

    We need to find a nice apartment for $1,000. we dont know where to look. Is there anyway you can help us find a place.

    • Julia Erlandson May 21, 2012 at 11:38 am #

      Hi Joan! Where are you located? If you go to http://www.mynewplace.com and enter your city or zip code, you’ll get a list of great available apartments in your area. Then you can narrow your search by maximum price, number of bedrooms, etc. Hope you find something that works for you, and let us know if you need any help using our site!

      Julia
      MyNewPlace.com

  19. http://www.vertex42.com/ExcelTemplates/personal-budget-spreadsheet.html excel budget template July 1, 2012 at 1:17 am #

    Hmm Well I was just searching on yahoo and just came across your site, in general I just only visit sites and retrieve my required info but this time the useful information that you posted in this post urged me to post here and appreciate your diligent work. I just bookmarked your site. Thank you again.

  20. Shannon July 24, 2012 at 7:01 pm #

    Looking for a studio or one bedroom apartment. Income based if possible. Its for my 8 year old daughter and I. Thanks

    • Julia Erlandson July 25, 2012 at 3:43 pm #

      Hi Shannon! Where are you located? If you go to http://www.mynewplace.com and enter your city or zip code, you’ll get a list of available apartments in your area. Then, you can narrow your results by choosing number of bedrooms or bathrooms, rent range, etc. If you click “Amenities” from the top bar, you can also select affordable housing, which includes below-market-rate properties. Hope you find something that works for you, and let us know if you need any help using the site!

      Julia
      MyNewPlace.com

  21. patricia jenkins August 2, 2012 at 7:19 am #

    need an 2 bedroom and den at the rent of 1200-1400,alut included

    • Julia Erlandson August 2, 2012 at 12:15 pm #

      Hi Patricia! Where are you located? If you go to http://www.mynewplace.com and enter your city or zip code, you’ll get a list of available apartments in your area. Then you can narrow your results by rent range, number of bedrooms/bathrooms, etc. You can also click the “Check Availability” button to contact landlords with specific questions about their properties. Hope you find something that works for you, and let us know if you need any help using our site!

      Julia
      MyNewPlace.com

  22. RagnaRok EP 5.0 มันมาก August 15, 2012 at 3:45 pm #

    Thank you for the good writeup. It if truth be told was once a enjoyment account it. Glance complicated to more brought agreeable from you! By the way, how could we keep in touch?

  23. Seal-Talent มันมาก August 15, 2012 at 4:08 pm #

    We are a group of volunteers and opening a brand new scheme in our community. Your website provided us with valuable info to work on. You have performed an impressive job and our whole neighborhood might be thankful to you.

  24. Harold Ernest Quiroga September 7, 2012 at 6:04 am #

    I am a 75 year old young man looking for a studio apartment about $700.00 or maybe $800.00 in the city of Cranston, Rhode Island 02920.

    Right now I am located in city of Cochabamba, Bolivia.

    I got to get out of here, things are getting from bad to worst and they don’t like Americans..

    The reason that I am here was to strech a bit my Social Security $Dollars.

    Thank you so so much.

    Harold Ernest Quiroga.

    • Julia Erlandson September 10, 2012 at 9:17 am #

      Hi Harold! Sorry to hear you’re not happy with your current living situation — we hope you’re in a better place soon! Here are the apartments we found in Cranson, RI for $800 or less: http://www.mynewplace.com/search?back=T&q=Cranston%2C+RI. You can use the filters at the top to narrow these results based on rent range, number of bedrooms/bathrooms, etc. You can also use the “Check Availability” button to contact landlords with specific questions about the properties or their requirements. Hope one of these works for you, and let us know if you need any help using our site!

      Julia
      MyNewPlace.com

  25. vera yates September 17, 2012 at 9:07 am #

    iam looking for place that for me and my stepchild and i only get 600A MOUTH AND WE DONT HAVE NO WEAR TO LIVE I GET DISABLE AND SHE IS TWO YEARS OLD IAM 48 YEARS OLD WE WILL PAY THE RENT WE JUST NEED HELP

    • Julia Erlandson September 17, 2012 at 11:47 am #

      Hi Vera — where are you located? If you go to http://www.mynewplace.com and enter the city or zip code you’d like to live in, you’ll get a list of available apartments in that area. Then, you can narrow the results using the filters at the top of that page — you can choose rent range, number of bedrooms/bathrooms, etc. You can also click the “Check Availability” button to contact landlords with specific questions about the properties. Hope you find something that works for you, and let us know if you need any help using our site!

      Julia
      MyNewPlace.com

  26. lisa September 18, 2012 at 8:27 pm #

    I am a mother that lives in new mexico my son lives in new hampshire by portsmouth nh he is looking for a lowincome apartment can puy rent up to 600.00 a month thank you you help to be nice thank you mom for new mexico

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  31. barbara moreno December 18, 2012 at 5:22 pm #

    I need to rent an apartment for $700 or less because my ss is not much i only make 739 a month, please let me know of a place to rent right away. thank yoy

    • Julia Erlandson December 19, 2012 at 6:01 pm #

      Hi Barbara — where are you located? If you go to http://www.mynewplace.com and enter your city or zip code, you’ll get a list of available properties in your area. From there, you can narrow your results by choosing rent range, number of beds/baths, etc. from the filters at the top of the page. Hope you find something that works for you, and let us know if you need any help using our site!

      Julia
      MyNewPlace.com

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