Rent to Income ratio

sequoias

sequoias

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This link below tells you about the rent to income ratio. Do apartment managers figure out the income to qualify for renting an apt, if you don't make as much? My ex and I paid $1335 a month for a 2 bedroom townhome and we made less than what the chart said.

Rent To Income: How Much Can I Afford For Rent? We Explain!
 
No, its up to landlord how much to charge the rent. The chart has three purposes. First, was a budget guideline for everybody, if your paying more than you should, then your over budget your housing. Second reason, thats for HUD, FHA, if qualified, HUD and FHA would cover the remainder of rent based on your income. For example, your income is 1,000 a month, with 30% rent rule, you pay 300 dollars each month including all utilities and if rent includes everything then you pay 300 dollars to the landlord and the landlord wants 700 dollars rent, so therefore HUD pay landlord extra 400 dollars to make it $700 a month (If the landlord is HUD then its already taken care of).
Third reason is Mortgage, if you want to buy house, Mortgage underwriters use that guideline whether to approve mortgage or not.

The chart just help you decide how much you can afford.

Say, if your monthly income is 1,250 a month meaning you can afford no more than $375 a month.
 
diehardbiker said:
No, its up to landlord how much to charge the rent. The chart has three purposes. First, was a budget guideline for everybody, if your paying more than you should, then your over budget your housing. Second reason, thats for HUD, FHA, if qualified, HUD and FHA would cover the remainder of rent based on your income. For example, your income is 1,000 a month, with 30% rent rule, you pay 300 dollars each month including all utilities and if rent includes everything then you pay 300 dollars to the landlord and the landlord wants 700 dollars rent, so therefore HUD pay landlord extra 400 dollars to make it $700 a month (If the landlord is HUD then its already taken care of).
Third reason is Mortgage, if you want to buy house, Mortgage underwriters use that guideline whether to approve mortgage or not.
Click to expand...

That's not what I'm talking about. I am talking about do apartment managers figure out the tenant's income would qualify to renting their apartment, not talking about low income program. They would turn me down if I make less than that?
 
The landlord set the rent according to their expenses to maintain their house or building and if water and heat is included in the rent that will make it higher and these the taxes too. There two units in my building that rentals and the one unit is about $900 , the landlord owned his unit for years and the other unit is for $1,300 and the landlord just brought the unit about 3 years ago and paid a lot more for it than the one for $900
 
Oh, not all do that, some do to keep perps out of their apartment. There are plenty of low income perps does more damage to property than those who work and earn decent pay.

sequoias said:
That's not what I'm talking about. I am talking about do apartment managers figure out the tenant's income would qualify to renting their apartment, not talking about low income program. They would turn me down if I make less than that?
Click to expand...
 
Take home pay should be factored in because of high taxes in some states.
 
I guess it depends on the rental history, criminal history, etc that can affect qualifying for an apartment to rent out. It's probably not just the income itself. We live in this rental house and we make less than 3 times the rent amount. It probably depends on the landlord decision, I would assume. I noticed there are a few "fixed" income limits to rent a apartment but they do have long waiting lists, that would suck.
 
diehardbiker said:
Oh, not all do that, some do to keep perps out of their apartment. There are plenty of low income perps does more damage to property than those who work and earn decent pay.
Click to expand...

That's so sad - shame on people who abused the property.

I'm very clean freak - thanks to OCD and take good care of the property, regardless on income.
 
Yup, I have a story here. I had great landlord years ago when I was single and lived in section 8 apartment (That is how I know about the ratio). Anyway, she had friend who owns a house just a door up, rents out to somebody then had to go though hell with eviction as it has to be done though court here in NYS. When Eviction is done, there was over $40,000 damage on property, including rock looking cider blocks as foundation, they were smashed all around plus inside too.
Sad, yes there are already judgement on that tenant after this was over. What can property owner do if that scumbag has no money, no nothing?
Sad, indeed!
Foxrac said:
That's so sad - shame on people who abused the property.

I'm very clean freak - thanks to OCD and take good care of the property, regardless on income.
Click to expand...
 
diehardbiker said:
Yup, I have a story here. I had great landlord years ago when I was single and lived in section 8 apartment (That is how I know about the ratio). Anyway, she had friend who owns a house just a door up, rents out to somebody then had to go though hell with eviction as it has to be done though court here in NYS. When Eviction is done, there was over $40,000 damage on property, including rock looking cider blocks as foundation, they were smashed all around plus inside too.
Sad, yes there are already judgement on that tenant after this was over. What can property owner do if that scumbag has no money, no nothing?
Sad, indeed!
Click to expand...

Yes, that's sad story.

The government should do anything - change the Section 8 law to make renters fully liable if they abused the property and banned them from using aid in the future.

I think anyone abused the property, deserved to live on street without any help - they made good low income people (including me) look bad. The damage is done.
 
You could not buy a house a reasonable distance of the city, in a decent area on what a normal bank would consider a sound down payment. That translates into higher rent. In addition, there is not that much rental space.

The housing bubble here has not gone down that much as it has for the rest of the country. I believe that will change as jobs come back to low housing cost areas. For now, there is no shortage of people who want to live here.

For Boston Renters, It Keeps Getting Worse | WBUR

Finally, rent control(a very dumb idea) has been repealed in the city.

EDIT: here is a better picture:
http://www.boston.com/realestate/gallery/average_rents_greater_boston/
 
diehardbiker said:
Oh, not all do that, some do to keep perps out of their apartment. There are plenty of low income perps does more damage to property than those who work and earn decent pay.
Click to expand...

The low income rentals in my cities near me are mostly run by the state or church not private landlords.
 
Anyone doing like this in HUD program will be black-listed permanently. So, once renter screwed Landlord that was subsiding by HUD, they will either have to pay for the damages or barred from getting aid from them.

Foxrac said:
Yes, that's sad story.

The government should do anything - change the Section 8 law to make renters fully liable if they abused the property and banned them from using aid in the future.

I think anyone abused the property, deserved to live on street without any help - they made good low income people (including me) look bad. The damage is done.
Click to expand...
 
I just found out one of the apartment complex does 1.5 times your income to qualify but that place has lot of bad reviews. It seems sometimes people who don't make much tend to bring in some bad people and don't take care of the complex well. It is not really easy to find the safe and affordable apartment complex, these are a rare sight.

I am not interested in HUD, section 8 or any other low income program because the waiting list takes too long and have too many paperwork headaches and also sometimes attract people that cause damage to the property. I do see why many landords do not accept section 8 vouchers for one of that reason. Not all of them do that, tho. I just want a place that we can afford, which is not 3 times the rent amount to qualify.
 
Yep

sequoias said:
I just found out one of the apartment complex does 1.5 times your income to qualify but that place has lot of bad reviews. It seems sometimes people who don't make much tend to bring in some bad people and don't take care of the complex well. It is not really easy to find the safe and affordable apartment complex, these are a rare sight.

I am not interested in HUD, section 8 or any other low income program because the waiting list takes too long and have too many paperwork headaches and also sometimes attract people that cause damage to the property. I do see why many landords do not accept section 8 vouchers for one of that reason. Not all of them do that, tho. I just want a place that we can afford, which is not 3 times the rent amount to qualify.
Click to expand...
 
Why Rent? What's wrong with own? It's cheaper monthly than rent as APR fixed rate for long term. I believe rent's price will up each year.
 
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