15% of your income

[suhadi88]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

The discussion title is interesting, but if we compare it to our current financial situation, it's likely possible, but not entirely consistent, especially with a limited income. It's not that people aren't optimistic, but the circumstances make it so.

[Emitdama]

It is indeed not easy, but it is quite possible for them to achieve if they do it sincerely, and there is already a lot of evidence that making money from the internet is something many people manage to do, so some of them have just not reached their time yet, and if they do it sincerely, I am sure they will be able to get it.

With the development of the times, it makes it easier for many parties to increase their income, that's true, and therefore I think the distribution of percentages for someone's needs will be easier because the amount of money is larger.

Making money on internet is not impossible, and if you move to a cheap area and have a low rent then you are going to be fine. But not ALL people can make money from the internet, in fact there are jobs all over the world that we need to be done physically and can't be an online job. If that was the case, how are we going to have doctors, delivery drivers, oil rig workers, mechanics and whatever else.

It means that we are not going to have people be full time online working. However, if you are one of those then yeah you can find a cheap area and rent there and not have to pay a lot, you can still work anywhere, even in the cheapest area, as long as you have a decent internet speed. This should not be an issue for many people, but it's hard to find those online jobs.

[Faisal2202]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

Giving 15% of your income to rent is a good way to keep things in shape. Because if we are earning $100k a year and 15% is going to rent, that means with the rest we might be able to live a moderate life, but if the yearly earning is $50k and you are giving 15% of that to rent, then maybe it can be hard.

That means you need to increase your yearly income, don't just sit on whatever you are earning, and limit your renting to 15% or 30%. I am not renting but I think it is better to focus on bigger things like how to earn more, how to expand, but saving money is also essential but don't spend too much time and energy on that.

[Cheema02]

Making money on internet is not impossible, and if you move to a cheap area and have a low rent then you are going to be fine. But not ALL people can make money from the internet, in fact there are jobs all over the world that we need to be done physically and can't be an online job. If that was the case, how are we going to have doctors, delivery drivers, oil rig workers, mechanics and whatever else.

It means that we are not going to have people be full time online working. However, if you are one of those then yeah you can find a cheap area and rent there and not have to pay a lot, you can still work anywhere, even in the cheapest area, as long as you have a decent internet speed. This should not be an issue for many people, but it's hard to find those online jobs.

Yes, Its possible to make money online but its not easy for any one to achieve this facility because many physical jobs that have worth like doctors and drivers and other worker they need to be worked physically so to earn through internet is not applicable for all individuals. But the people who belongs to a local areas have a golden chance to avails this opportunities and in lower areas bills and rents are so cheaper so they have a chance to make a huge amount through internet. The only thing for work is required is stability of a internet and its almost every where present. And after a lot of benefits to earn online is not easy because strong skills and luck is also required for joining. So the learning point is that online work no doubt is a good way to earn but physical work also have an importance to stable the society.

[NurseHub]

We have different locations in the world, so from where I live currently I think that yes housing shouldn't take more than 15% of my income, there are places where you chose to live in my city, it cost a whole lot of more y but in my opinion living in an expensive area is only determined by your income, so if you have enough and make a good amount of money, no matter where you live you will still have to maintain the 15% or below housing expenses because if you go higher it means your income is going high too. if you go lower when your income is higher then you have less then 15% to spend on housing.

[IjawMan]

The 15% will not be a workable underlying percentage to use again in today's economy with housing crisis escalating beyond like what I have never witnessed my entire time on earth.

If any family is still to go with that 15% rent they will be in a rural location and not in the city where the population is high above the number of available standard houses.

If you are living on a single income at this time you may barely survive with it and  am certain that the 15% might not be what is in use in contemporary today with the high cost of living it would have been upgraded.

[pawanjain]

The 15% will not be a workable underlying percentage to use again in today's economy with housing crisis escalating beyond like what I have never witnessed my entire time on earth.

If any family is still to go with that 15% rent they will be in a rural location and not in the city where the population is high above the number of available standard houses.

If you are living on a single income at this time you may barely survive with it and  am certain that the 15% might not be what is in use in contemporary today with the high cost of living it would have been upgraded.

The house rent does really depend on which ares we live in and what our income is.
Someone living in a rural area with a decent income would be able to save enough and pay rent under 15% of his income.
Someone in a developed city might be struggling with the same type of income while on the other hand if he has a demanding job with a great income it would suffice all his needs.
It's quite subjective and this magic number might not really work for everyone.

[philipma1957]

almost 10 years ago, i read that your rent or whatever you pay for your home should not exceed 15% of your monthly income. now in 2026, many reports are saying that there definitely is a housing crisis.

with some saying this could be worse than the 2008 crisis. do you still believe that only 15% of your income goes to rent or house expense? is housing expense your biggest expense monthly?

I have no mortgage.

But my property tax is 10,600 usd a year. No choice pay it or my house will be taken away.
Lawn care 1600 a year have to do it or be fined.
Heating 3000 a year
Electric 3600 a year
Water bill 1000 a year
Sewer bill 1000 a year
House insurance 1500 a year

All of the above is about 22300 a year

15% of 150,000 a year is 22500 but I make about 100,000 a year

So I pay 22.3% a year with no mortgage

I need a raise to 150,000 a year.

[dezoel]

Another problem is the inflation and increase in the prices of everything but the only thing is the our income didn't increase with that pace. This is the reason that when you compare the rent with your income, the percentage seems to be increased as now we have to pay more rent but on the flip side, our income hasn't been increased with that pace.

The people doing job suffer more from this as the companies never raises the employee income as compared to the prices of commodities getting increase. The businessman is better placed in this situation as he is able to increase the product / service cost.

When your salary isn't increasing as much as the inflation does, then you should change jobs. Not just because you can easily find one, you may not, but remember, in most cases when a company has an employee already for too long, they tend to pay the same salary to those people, but when they are hiring a new one, they have to compete with the market.

So if you move, even for doing the same job, you could find more money somewhere else. If you can't, then of course keep at your job, never quit before you find another job, but if you do, and it pays better, then you can quit and inflation will not be an issue for you.

[virasog]

The discussion title is interesting, but if we compare it to our current financial situation, it's likely possible, but not entirely consistent, especially with a limited income. It's not that people aren't optimistic, but the circumstances make it so.

Well, we can say that since 10 years ago, your monthly income to be 15% in proportional to the rent that you spend and it should remain more or less the same after so many years. That's not possible as with every passing month and year the geopolitical situation changes and also the inflation has a big impact on the prices.

I think the biggest problem is that every year the housing rent increases, but the incomes of the individuals do not increase to that level, and therefore we feel that sooner we will experience a housing crisis.

[Nanga Parbat]

My monthly salary is spent on my children's education, and 40% of the salary I get is spent on my house rent. And it becomes very tough to maintain my family with the money that is left. Moreover, the standard of living in the city where I live is very high and at the end of the month, with my salary, there is no money left to pay house rent and tuition fees for my children. But there is nothing to be done because the monthly salary does not increase, but the standard of living and the prices of daily necessities are increasing. That is why it has become very difficult for employees like the lower and middle class to pay house rent.

Nowadays as inflation is skyrocketing it is becoming very difficult for everyone to meet all the expenses with their monthly income.This is not only the case of employed people but those who have their own businesses are also worried because the money they have saved is spent a lot in 1 month while not even as much money is being earned as is being spent.The monthly income also seems low because everyone wants to provide their children with good education good living conditions and everything good.The government should understand everyone problems and reduce inflation so that life becomes a little easier.Otherwise we can neither save nor invest.

[Abiky]

When your salary isn't increasing as much as the inflation does, then you should change jobs. Not just because you can easily find one, you may not, but remember, in most cases when a company has an employee already for too long, they tend to pay the same salary to those people, but when they are hiring a new one, they have to compete with the market.

So if you move, even for doing the same job, you could find more money somewhere else. If you can't, then of course keep at your job, never quit before you find another job, but if you do, and it pays better, then you can quit and inflation will not be an issue for you.

Why not have more than one job while you're at it? You don't necessarily need to change your existing job. Just keep it and look for ways to make a side income. I have seen some people having both a full-time and part-time job. They work on weekdays full-time, leaving the weekends for part-time labor. Others have their regular, full-time job with a side hustle (like selling things online or even charging for their services).

While things are getting tough because of rising geopolitical tensions, it's still possible to save a sizeable part of your income for a rainy day. With a good financial strategy, you'll have nothing to worry about.

[Bitcoin.com97]

The 15% standard doesn’t apply to everyone, prices of house varies for different area , even in my city , you don’t expect someone in GRA and someone who stay in normal area to pay the same amount , so the 15% can’t  work , especially now that landlords  are increasing rent every year , in some places they take 2years or a year and 6months rent, to some person the 15% is small while some it’s nothing to them , the more the inflation , the more things are becoming difficult for many , most landlords , the house that is built 10years ago , just because  product and things are high , they tend to increase their house rent also , now is even hard for many to save , before you could save up for rent and few expenses nothing will be left with you again .

[libert19]

is housing expense your biggest expense monthly?

Nope. Housing is not by biggest expense since I own my home, if I were to pay rent, it would be. My biggest expense is food currently — this is so, because I eat out everyday, if I were to make meals at home, it would be much cheaper but it's too much of a bother.

On note, title should have been better.

...

Smart move would be don't own a house because paying is cheaper while we can use that extra money to invest and get them to buy the one we wanted earlier than 30 years at the current rate.

My thinking is simpler. I don't like burden of rent hanging over my head every single month, so would rather prefer to own house. But, I understand different individuals with different thinking.

...

Why not have more than one job while you're at it? You don't necessarily need to change your existing job. Just keep it and look for ways to make a side income. I have seen some people having both a full-time and part-time job. They work on weekdays full-time, leaving the weekends for part-time labor. Others have their regular, full-time job with a side hustle (like selling things online or even charging for their services).

Is this what they call life these days?

[terrific]

The 15% standard doesn’t apply to everyone, prices of house varies for different area , even in my city , you don’t expect someone in GRA and someone who stay in normal area to pay the same amount , so the 15% can’t  work , especially now that landlords  are increasing rent every year , in some places they take 2years or a year and 6months rent, to some person the 15% is small while some it’s nothing to them , the more the inflation , the more things are becoming difficult for many , most landlords , the house that is built 10years ago , just because  product and things are high , they tend to increase their house rent also , now is even hard for many to save , before you could save up for rent and few expenses nothing will be left with you again .

It's only possible if you're in a rural area. But I think even in the country side or rural areas, the rent has already increased.
So, if there's still some 15% allocation from the salary of a regular worker. That's good.
But we expect that there's more from that percentage these days and it's even harder because of the war and the effect that it's giving all of us.

[Bitcoin Smith]

...
Smart move would be don't own a house because paying is cheaper while we can use that extra money to invest and get them to buy the one we wanted earlier than 30 years at the current rate.

My thinking is simpler. I don't like burden of rent hanging over my head every single month, so would rather prefer to own house. But, I understand different individuals with different thinking.

Let's assume someone is buying the house today, in our country the small 1000sq.ft apartment will cost like 2cr on average in the cities and the EMI would be 1.5 lakh for 30 years but if we would have to rent the same house the rent would be 40K at max so we still have 1.1 lakh extra that can be invested into something basic so over 30 years we would be having a huge amount of wealth by not owning the house but it comes with emotional bond and other factors that pushes people to own a house.