There’s an old financial rule of thumb that is getting harder and harder to live by: Spend no more than 30% of your income on rent. As costs of living and, specifically, costs of housing go up across the U.S., putting 70% of your income toward everything other than rent is just not feasible for many. A particularly unsettling study by Redfin in 2024 found that more than 20% of Americans are spending their entire paychecks on rent or working second jobs to be able to afford a place to live.
Learn More: How Much Money Is Needed To Be Considered Middle Class in Every State?
