Are You Spending Too Much on Rent?

Jackie Sublett
Jackie Sublett

Writer @ Hero Home Programs™

Table of contents

The rule of thumb is that you should not spend more than 30% of your household income on rent. This means that if your combined household income is $10,000 per month, then your rent should be no more than $10,000 x 0.3, which comes out to be $3,000.

This 30% rule of thumb exists so that a household can cover their current expenses while also saving money. If your household is spending more than 30% of your income on rent, this can make it difficult to manage your current expenses while also securing savings for the future.

While the 30% rule is helpful to keep in mind, it can be difficult to stick to this rule for people who are cost-burdened by debt. For this reason, people with high student loans or costly debt payments should consider using the 43% rule.



The 43% rule states that your monthly housing cost plus your monthly debt payments should be no higher than 43% of your monthly income. Meaning, if your household monthly income is $10,000, then your total rent and monthly debt payments should not exceed $10,000 x .43, which is about $4,300.

Depending on your financial situation, it may be difficult for you to stick to either the 30% or 43% rule. If you’re a current renter hoping to own a home one day, saving for a down payment may prove difficult if you’re cost-burdened by debt or high rent expenses. If this is the case, consider cutting down on expenses so you can save for a down payment on a home.

There are many ways that cost-burdened renters can save money and reduce monthly debt payments. For example, refinancing student loans for a longer-term or lower interest rate can lower your debt payments. You can also consider getting a roommate to help cover rent.

Most importantly, you should take a critical look at your expenses. This will help you create a budget and cut down on spending. Some of the most common expenses that hold renters back from saving money are eating out, online shopping, excessive utility usage, and subscription services.

By reducing your spending wherever possible, you can more easily save for a down payment on a house, rather than blowing all your money on high rental prices. By buckling down on your monthly expenses, you can create a better financial situation for yourself in the long run.

We help you reach home ownership.

No catch. No hidden fees.

Have you served in the military or your community as a healthcare provider, teacher, or first responder? Are you a member of your local union or work for your city government?

Are you looking to buy a home but don’t know where to start when it comes to finding your best home financing options?

At Hero Home Programs™, our teams are dedicated to helping community heroes like you through the home purchasing process by finding the best grants, rebates, and loans in your area in order to maximize your savings and help you achieve homeownership.

Contact our team today to learn how we can and mortgages can change your life.

Resource Guides

Complete A to Z guides on your home purchase journey.

Learn about the process for getting a home loan

What steps you can take to improve your credit score

Tips and tricks for moving into your new home

Your step-by-step guide for buying a new home

Scroll to Top