How much should I spend on rent?

March 18, 2016
I am 31 years old. I contribute to my 401k, and just moved to Reston, VA. It's a 20 minute commute to work. I make $55,000 annually.

Advisor answers

Linda Jacob

Linda Jacob

AFC®, CFP®

A good rule of thumb is to spend no more than 30% of your income on housing. This includes utilities and renter's insurance. This of course depends upon the rest of your expenses. Prepare a realistic budget and decide what amount you are most comfortable with, and then start looking for a place to rent.

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