In a recent WilliamPaid survey of more than 450 renters, more than 70% pay 20-35% of their monthly income on rent, with more than 25% spending more than 35%. Ouch. That can make the first of the month very painful. But, as you are looking for an apartment, how much is too much when it comes to rent?

While some people advise that rent not comprise more than 20% of your income and others say one-third, there is no “right” number. Much of determining the right number for you depends on your situation. Here are a few things to consider as you hone in on the magic number.

• What’s included? Or, more importantly, what’s not included in the rent? Utilities, cable, parking, internet, laundry - these all can add up. And, if they are not included, it can skew your calculations on determining how much to pay for rent. If utilities aren’t included, find out how much they will be. If your potential landlord isn’t being particularly helpful (red flag!), call the utilities directly.
• Consider Other Bills. What else do you have? A car payment? Student loans that eat at your cash each month? In order to see how much you can pay for rent, you need to do a true accounting of your other, non-discretionary expenses. Just because you and your friend make the same salary doesn’t mean you can afford the same rent.
• Non-traditional Income. As you look at what you can afford, keep in mind that some of your income may not be ratable over the year. For example, you may receive a sizable year-end bonus. Or, perhaps much of your income is in the form of commissions. If your income is irregular or unpredictable, you might not want to get the place with rent that you can afford when your commissions are high. Don’t get in over your head. Leases are temporary - you can move next year after you have a better sense of your income stream.
• Trade Offs. As you figure out how much rent you can afford, think about the trade offs. Neighborhood versus size. Solo versus roommate. As you determine what is important for you, you’ll be able to hone in on what you are willing to spend.
• Be Responsible. Maybe you just got a raise or perhaps your are shopping for your first apartment in the big city. Whatever your situation, be smart. Don’t get yourself overextended. Be realistic about what you can really afford. And, if you are starting out, you may not have a good handle on what all of your month expenses will be, so take it easy.
• Safety Net. Even if you are starting out, factor in a little savings every month. Remember, jobs can come and go, but leases are twelve months. Building a nest egg early will help you avoid any of the nasty scenarios that can come crashing down if just one thing goes wrong.

There is no one size that fits all. How much you can afford in rent is a factor of your obligations and your lifestyle. Do yourself a favor with a realistic appraisal of your situation and go from there.

Good luck, and happy renting.