One of the benefits of shared housing is that it can save you money. The general rule of thumb for a reasonable amount to spend on housing is now 30% of gross income. It used to be 27%. The three percent increase probably represents a creep upward as everyone copes with higher housing costs. So what is 30% actually?
Here’s a quick look.
Income $25,000, housing $625 a month.
Income $35,000, housing $855 a month.
Income $45,000, housing $1125 a month.
Income $55,000, housing $1375 a month.
Income $65,000, housing $1625 a month.
Income $75,000, housing $1875 a month.
Of course there are other factors that go into the cost of living. Transportation is a huge one. The Housing and Transportation Affordability Index is an interactive site that shows how the costs of housing and transportation together change the affordability of an area. Living in a cheaper area but spending more time driving may not be cost effective. If your housing plus transportation costs are more than 45% of your income, your costs are unsustainable. The site offers analysis of most major US metropolitan areas.
Can you afford living alone? Maybe.. how much more cash would you have if you shared your housing? What could you do with that extra cash?