Let’s just keep this simple.
The answer is ⅓ (one third) of your monthly household income. This is not only the widely accepted “general rule of thumb” for which Kansas City property managers and landlords screen, it is also just a solid best practice for managing your personal finances as a #KCrenter. More on that in a bit . . .
One Third. So if your last pay stub says you make $3,000 in one month (after taxes & deductions) then you can should spend ~$1,000/mo on your rent. Just take your monthly net pay and multiply it by 0.33 or 33%. In other words, this is the amount you should expect to get approved for by most Kansas City landlords and property managers.
Is that all you needed to know? Great, start searching for your next Kansas City apartment or rental home on LeasingKC.com!
For a lot of people, this can be a very practical and even ideal way to efficiently budget for your rent and understand how it fits into managing your overall personal finances. Here at LeasingKC, we advise that #KCrenters adhere to the 50/20/30 rule when managing their personal finances. This is all based off of your monthly household income.
Here’s how it works:
50% of your monthly income should go toward monthly fixed expenses: rent, utilities, car payment, etc. This is where your rent fits in. So, the first 33% (or so) is taken up by your rent payment, leaving the remaining 17% (of the 50%) which should be budgeted for utilities, car payments or other major fixed monthly costs.
20% of your monthly income should go toward only two things, and in priority . . . first, debt reduction (i.e. credit card debt or other unsecured debt). Second, savings (i.e. 401k, IRA, emergency fund, savings account, etc.). The idea being that there is no sense in putting money away in savings if you still have debt owed. Divide the 20% up however you want, but always put priority on paying your debt down first, then focus on savings and investments.
Lastly, the remaining 30% of your monthly household income can be used for monthly flexible expenses such as groceries, entertainment, eating out, hobbies, travel, and whatever else you need/want to maintain a lifestyle that YOU want.
To see all the ways you can get the most out of your 30% in Kansas City . . . look for our #KCexperience posts on social media and in The KC Renter newsletter!
This method is simple and easy to adopt. Just be sure to revisit your personal finances a couple times per year. That will allow you to make adjustments and set new goals as your life unfolds in Kansas City. And, we’ll continue to concoct refreshing experiences and provide relevant info on the local rental market as it also unfolds.
We hope you learned something here. Now go get your spreadsheets out, figure out how much rent you SHOULD be paying, then go find that perfect Kansas City apartment on LeasingKC.com!
Check out a couple of our new site features!
- Listings are now sorted by last updated for all search results. Look for the “Last Updated” stamp on each listing to see last time the ACTUAL landlord or property manager updated his or her listing.
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