I would not in your situation. That’s essentially your entire base salary. What if you get laid off?

No. Your rent really shouldn't exceed 30% of your gross monthly income. Based on a minimum amount each month of $5500 you shouldn't pay more than $1650 for rent.

Edit: sorry I obviously can't read where you put NET. I still think it is a bad idea, commission jobs are never a sure payday so I would base all budgeting off of your base salary, but the logic is sound and is ultimately up to your comfort level!

Yeah, it looks like you can. They say 30% of gross as a rule of thumb and it looks like your gross/month is on the order of 9K+ so I think you're good, especially without a car payment.

What are your other expenses, both now and after you've moved?

Just because you can, doesn’t mean you should.

Very few people can afford their housing for long if they get laid off. It looks like their base is only half of their total income. And they have 4 months' rent in the bank, and could easily keep adding to that emergency fund while renting.

Where are you getting 9k from?

that's $5500 NET

Ah yes I see, I would still say that this is still pushing it for a 2800 rent, and I personally wouldn't do it.

They net $3K/month from their first 55K gross salary. They net about as much again per month in commissions. So estimating about another 55K gross in commissions. which is ~$110K/year Gross or ~9K/month gross.

The 30% rule doesn't make sense in all situations. Without any car payment, they can afford to go even a little over the 30% if desired, assuming they either don't need a car at all, or have a reliable one and aren't going to need soon.

When my husband and I were grad students, we spent well over 50% of our income (stipends) on rent, but had basically no other expenses other than groceries and textbooks (tuition was paid by fellowships/assistantships) and it was fine. No cars, no other expenses.

A rule of thumb assumes certain typical expenses, several of which OP does not have.

Not sure how much one could save with over half of the income including commission going to rent. Also the 4 months savings is RENT ONLY essentially. What about food? Utilities? Transportation? Etc. I think half of anyone’s income on rent is crazy especially when that’s counting commission income. But I don’t know the industry so maybe it’s more stable then I think.

Is there a home you can buy instead? $2800 is a lot towards a mortgage.

If you can qualify, your money would be better spent there.

My mortgage on a $256,000 home at 4.125% is about $1300 a month. Now rates and property values have gone up but $2800 is a lot every month. But I don't know where you are living.

I agree, this is really where it come down to OP's financial practices and what they value.

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no, you CAN NOT. you should be renting somewhere close to $1500 MAX.

If that 2500 minimum net commissions isn't reliable, then that's more risky. I'm taking OP at their word that it ranges between 2500 and 5K/month in commissions and they can more or less count on at least the minimum.

Buy a duplex. Rent out the other side and live rent free.

Your commission is money to invest in your future. Live on the salary now. If I would have don’t this 15 years ago I would be a millionaire. The luxury apt downtown wasn’t worth it

Don’t do it… save up more money and buy yourself a condo/ apartment/ house. At least this space will be yours and you can always resell.

That is tight I would not risk it. Save up and buy, max out your 401k start a IRA. Help pay off your parents home. Rent is like throwing money in to a fire.

median home price in the US is $428,000. Haven’t seen a home for $256,000 in years

What if they cut hours? What if you dont meet your commission every month?

I 100% would not rent this spot.

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So you're bringing in between $5,500 to $8,000 (net) a month and want to use $2,800 towards rent?

New york

If your boyfriend just broke up with you, you’re probably in a bad spot emotionally. Never make major decisions when you’re really sad or even really happy. Extreme emotions will make you do stupid stuff. Take a few months to recover emotionally at home then decide if you want to more out to a reasonable priced apartment.

its tight, I spent about half my income on a place per month once and i regretted it often, and that was a steady pay job.

You probably can afford it. It’s a stretch though, you will be apartment poor without much buffer for fun or other expenses.

The bigger question would be does the property management company think you can afford it? Their qualifying guidelines may require you to make 2.7 to 3 times the rent in gross income annually (proof of ability to pay) along with a decent credit score (proof of willingness to pay) to qualify.

No. I make 180k and pay 2.8k for rent + with all my other expenses, I still feel like it's high. At 55k you shouldn't be paying more than 1.5k a month. Get roommate or suck it up living at home, save your money

The wealthiest man I know is someone that lived at home until his 40s, then bought a NEW house with CASH in Austin, the most expensive city in Texas. There is no shame in staying home nowadays.

Aside from that, I also agree that this may be a bad time to make a big move. Wait until you aren't in the throws of your break up to make a big decision.

You can probably make it work. But you really shouldn't.

Assuming you contribute zero to retirement and you never make commission, you will net $3.4K a month.

Slap on $100 for utilities and internet and some streaming service, yada yada you're looking at $3K a month in living expenses.

You will eat and live like dog shit on $400 a month.

Don't do it to yourself.

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Find a cheaper place and just rent. It'll be cheaper and give you time to focus on yourself and career.

One thing to note here is that OP lives at home but only has 13k in savings with this income. One question would be how long has OP had this job. If OP has had the job for longer than a few months, with no other obligations, and no living expenses, then spending may be out of control. I would doubt this rent is doable regardless.

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I like this but not sure if you can do it with $13k savings. Plus DTI won’t work.

Absolutely not. What happens if you get laid off or budget cuts are made? When commission doesn't come in for a few months?

There's way too much risk here when you're stuck in a year long lease.

What about all the furniture you'll need? Monthly utilities? Renter's insurance? All the other little things start to add up once you move out.

FHA. Yes you can

Oh yikes.

I'm not OP, but what do you think about a 2k mortgage making 95k+ 5k bonus and net monthly being around 4600?

I would absolutely not. You are gaining nothing and paying off someone Mortgage. You can live in a nice appartment costing less than that.

Sounds like you are young don’t move into your dream apartment this early. Move somewhere basic and figure out what you value in a place you live. It is easy to get a better apartment in a year, it is way harder to adjust your lifestyle down.

Even if I was making double what you're making I would be cautious to spend that much on living space, only consideration would be if you could split the rent with roommates but that comes with it's own risks as well.

I’m also making around the same as you and I rent a $1,300/month apartment with a strict budget, I’d say $2800 is way too much

2k just mortgage or PITI? Either way it’s high but if it’s just mortgage it’s way too high.

Recently In my city three brand new built homes all sold $220K-$240K all next to each other from the same builders and floor plans. Where are you getting these numbers?

Off topic, it's kinda funny knowing which new homeowner is the best negotiator.

Not too dissimilar from my situation and I can still save alright for retirement at the same time. I also had to deal with a few issues in the first 6 months of owning. Have an emergency fund in place!

OP, don't do it. I know you think you want to but that amount of stress will weigh on you. Get a roommate. Enjoy the lower payment and set aside the extra you would be spending at $2800/mo so you can really see how much you'd be scraping by.

I'm a decade older than you and in a lower cost of living city but my base is over 3x more than yours and my mortgage is $2100 including taxes and insurance. Not feeling suffocated by housing expenses really is a blessing.

If I were you, I wouldn’t do it. Spending what is likely a good majority of your average income on rent isn’t a good idea, unless you absolutely have to move out. But, looking at the post, it doesn’t appear to be the case. Typically, you should aim to have below 30% of your monthly income spent on housing. Obviously, with increased rent/home prices these days, that feat is harder, but the numbers aren’t in your favor. Even if you happen to make maximum commissions in a given month, you would still be spending about 35-40% of your income on housing. And if you don’t happen to make commissions in a given month…good luck. I’m really sorry to hear about your breakup, and I dearly hope that you will heal and find love again soon. But, if I were you, I’d stick around at your parents house until you can find cheaper housing (move to another location, perhaps?) or a pay increase.

It’s not worth the stress of rent and utilities. Keep saving. Get to 50k and hopefully by then prices might be lower.

Mortgage and rent are completely different ballgames as long as you arent planning on selling your house every 5 years. You are storing away the value of that payment in you net worth, if you can afford to live on the rest its not a poor move. Rent is flushed down the toilet every month, youll never see the value of that cash again once that month ends, which is why paying rent at any elevated rate, no matter how much income you have, is a poor idea.

The way to think about this sub is like an extremely conservative aunt or uncle. The sub is never going to be comfortable with anyone paying anything more than 1/3rd of their salary for rent. And in your case it's like 50 percent to 93 percent of your take home salary.

That being said, I've known folks pay higher than 1/3rd and do okay for many years. So it's really upto you. If you reliably get commissions of at least 2500 each month, i think its not unreasonable.

This is great advice right here

$2800 is a lot for (presumably) a one bedroom apartment pretty much no matter how much you make imo. At least look to drop it down to around $2000 to save yourself $800 a month

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Its an extravagant price. Live cheap on ur own first. Stay at home its cheaper

I dunno what piti is but that’s inclusive of tax, insurance, etc.

Agreed. OP sounds like an addict. It's either drugs or shopping or eating out 3 times a day. But it's something. Where's all that money going when you don't have any bills?

No, it’s too expensive you should be spending 28% of your gross income on housing max

Definitely doable especially if you're single making that much. Just make sure to budget your other recocurring monthly costs.I live in Southern California so a 2k mortgage sounds like a dream.

I'm submitting a bid on another house that's in a small town that would be $213k or $1500/mo inclusive of tax, etc. But the bank that owns it is trying to fish out the max they can and spark bidding wars. I know for a fact they have at least one offer over list (mine, 3k over) but they pushed back their deadline to get offers in. Even though it's less per month, I'm still not gonna overpay for it, so I'm not raising my bid.

So if that one falls thru, my next pick is a bigger, brand new construction, with builder incentives like 10k towards closing and point buy, 4k lender credit, etc.

I live in a low COL state. $4600 is after me contributing 8% to 401k (for a combined 15% between my employer and I). I feel like $2000 + $200ish for power + $80 for internet + $80 for water/sewer/trash for a combined $2360 with $2300 left over leaves me in a decent spot, considering 2.5 years ago I didn't even bring home that much.

I do have a teenage daughter who will turn 16 next year, she'll dent the budget a little, but I feel like we could make due and hopefully in 2-3 years rates will be down again. My truck is paid off and I work from home, so she could drive mine some, or I could spend $10,000 or so on her a good used sedan. We'll just have to eat in and stuff more than we do now while we're at my parents.

Add internet bill + utilities and you looking at 3k+ which would be your entire salary (not factoring comission) or even more. Also groceries + eating out? At best you would be living paycheck to paycheck but more than likely would be dipping into savings every month just to stay above water.

Rule for monthly rent is annual salary divided by 40. Sounds too expensive.

I would move out but find somewhere cheaper to move to.

Your plan should be to stick it out with your parents for another year (assuming that is an option) and start paying yourself that much “rent” every month into a high yield savings account. Add in a few hundred extra for what it would cost for utilities, cable , etc. to round up to $3k/month. Don’t touch that money for ANYTHING. Consider it gone. That’ll help you adjust to what it’ll be like spending it.

In a year, you’ll have a decent sum tucked away for what may be a falling housing market (depending on your market), which’ll give you options. If you want to rent at that time, you’ll have plenty of reserves available should something happen to your job.

I doubt they would qualify for a mortgage…

Buy a house already , you make too much money to be paying somebody else’s mortgage

No, that’s way too much of your income. Roughly 30% of your income should go toward housing. Less than 50% is essential if you don’t want to be house poor

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Seems like right now is a highly emotional time for you with the recent breakup and you think you should "treat" yourself to this apartment. Once you move in and realize half of your income is going to an apartment that you don't own and aren't building equity into you'll hate yourself.

I think your more in the $1300-1500 rent range.

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With a roommate, yes. On your own, no.

You target, based on your base income, should be 1,650 or less

I second u/usmcwrangler That is too much money pouring out of your pocket and into a corpo’s coffers.

It would be better to use that money to build your savings: retirement 15-20 % of your salary, emergency medical/dental fund aim for several thousand at least, and make a “car payment” to yourself for car maintenance, repairs, and replacement, and a job loss emergency fund of at least 6 months but aim for 1.5 years of expenses.

Then start a general savings account for life goals, like a down payment on a house. Even if you have no intention to buy a house -if you ever needed to you’d have the money to do it but also, it may be money for you to move overseas or start a business,go back to school-regardless start putting money aside and stop giving it to other people.

The peace of mind is amazing.

Then, when you realize you have options in life, mentally it is so wonderful to look forward to the future

You shouldn’t base your entire budget on earning commissions that aren’t guaranteed. But even if you assumed you’d always make at least $2500 in commissions, that apartment is too much for your income. Based on your story, it sounds like you’re making an impulsive decision to rent the “perfect” apartment to fix your life, because you’re unhappy that your boyfriend broke up with you and you still live at home. Renting a fancy apartment isn’t going to start or fix your life.

My dad use to give me the advice to never do two things when emotional: drink alcohol or make life altering decisions. Find a substantial outlet to build yourself up instead. Something inwards and not outwards.

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No you can't. 2800$ is nearly your full salary. You should aim for $1500 instead.

Stay at home for a few more months and see what you can save. How long have you been saving to get to 13k?

Over the next 3 months, save 2800 for rent. At least 150-200 for utilities. 50 for internet. 200-400 for food (do you cook/make every meal, or do you eat out). 250-500 for random expenses.

Sure, some of those numbers might seem like more than you need, but always have a plan for higher expenses.

Worst decision you could possibly make.

Do you expect your parents to pay for your food, car insurance, phone, electric, waste/recycle, water, renters insurance, etc?

You can't confidently expect your parents to continue paying your bills when you move away. One of the biggest mistakes I see young people make is underestimating the cost of living. when parents pay for more than half of your living expenses, I would stay home and save as much as possible.

In today's world, I would stay at my parents' house until they forced me to leave. Save up $100k+

Can you walk to your job?

You have no idea this guy's living situation, ya dip

I would challenge you to stay at home for at least the next 6 months. During that time, save $3,000/month. Every month. See how that feels. If you can do that, you can probably spend $2,800 in rent. Also, I don’t know where you live, but if it’s somewhere cold right now - I don’t see any reason to move out in winter. Nothing fun is happening anyway. Wait until summer when you can enjoy your freedom a bit.

Why don't you buy a condo and put that money toward a mortgage?

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I met my now wife while she was in a similar situation (recently broken up, moved into an apartment she could barely afford under the pretense that she needed to learn to live alone).

That was close to 10 years ago.

When she talks about that apartment, she’s not regretful, but she wishes she had lived at home for 6 months, saved up money for a down payment, then bought a place of her own. But again, hindsight is 20/20 and you’ve got to do what you think is best for you.

Lmao I’m at 140k and I refuse to pay more than $1600, they shouldn’t be paying 1.5k at a 55k salary. I agree they need a roommate or need to live at home

This is the correct answer. I can technically afford to buy a $100k car in cash, but that doesn’t mean I should.

No, it’s over your limit by $1,000

I work from home, no office

My parents don’t pay for any of my bills I am just on their health insurance

Horrible idea! If your commission check is late, you’ll run up credit card debt to feed yourself. You shouldn’t be paying more than $1500 a month. Sorry, get a roommate and save money to buy a house.

Be careful turdferg with this math..

Of the mortgage, your equity increases just eith principal paydown...taxes, insurance, maintenance (commonly estimated at 1% annually of home value)... Having a mortgage can make sense for a lot of good reasons...but a well priced rental can sometimes be better for the situation.

I would move out of your parents house but I think you should definitely find something cheaper if you have other options in NY. Good luck

Sometimes the truth hurts BUB

But it isn't the truth 😂

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There is zero chance they will rent the apartment to you. Maybe if you have a roommate lined up, even then it seems very expensive for your income.

What an odd thing to say about someone you don’t know

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Do you plan on never eating and spending literally all of your time in your place? Sure. Do you want to move out + actually be able to afford groceries, going out and socializing, enjoy hobbies, etc? Then find a cheaper place.

Source: am 33, moved out when I was 20, kept rent (mortgage in my case) at less than 1/3rd of my NET income, thoroughly enjoyed life

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Typically, you want to go by a 40x rule.

You would want to be around $112,000 a year for this price point (2800x40). You don’t want to get into something that will set you back but it’s a lifestyle move and entirely up to you.

Best of luck!

I make 220k and rent a place for 3k/mo and feel like it’s a burden

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You cannot afford this. You will literally only have 1 or 2 hundred bucks left after taxes and rent. You can't live with that.

idk what's going on in your life, but moving out will only add more stress to it. It sounds like you feel like you have to do "something" to change your life, but this is not the right thing.

Is commission guaranteed? How are you going to afford this place if your commission stops or slows? Your GUARANTEED pay is $200 more than rent. Maybe consider going somewhere cheaper.

No, try to keep your housing to less than a third of your income. Don’t enable garbage luxury apartments either

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What's missing from your story is what your financial goals are. Ok, you have $13k in savings, but how many months does this cover you for? Beyond having an emergency fund, what are you looking to save for? What's the state of your retirement? Rather than just say "no you can't afford this", I'm trying to get you to think through your needs and wants so that you can answer your own question. I would bet money that once you start thinking about your needs and budget towards them, you should be able to see whether or not this rent fits into your picture.

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Great suggestion!

OP (or anyone else reading) can do something similar in the future too. If planning to moving into more expensive housing, spend a while putting the difference between current and prospective payment into savings, to see what the new budget will be like.

This also has the huge upside of ensuring that you have a lot of savings when you do move.

The US housing market is a heterogeneous data set for which a single statistic is a completely inadequate metric. At a minimum you need to include acknowledgment that 50% of homes sold for less than the median. But really you need to break it down by region and look at both median and standard deviation within each region.

Put another way, median is not synonymous with floor.

100%, im still a renter for this reason.

What does your current budget look like? What I'm really asking - why have you only saved about 2 months salary if you aren't currently paying rent, and have no car payment?

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Also, rent never ends. Mortgages have a payoff period or amount.

The Sooner you start the 30 years the sooner it ends

So true! However, I always chose the 15-year route.