Set a complete housing budget
Want more background?
The idea in everyday life
Work out the most you could spend on housing after allowing for other living costs, money needed to move in, and unexpected expenses.
Check whether money coming in can cover all your costs. A landlord’s approval alone does not show that you can afford the home.
One step at a time.
Use the sample or information you have permission to use. Keep your work as you go. You can pause between steps.
- 1
Start with take-home income and subtract non-housing necessities, debt minimums, and a sustainable buffer.
- 2
Estimate rent, utilities, internet, parking, laundry, insurance, commuting, application fees, deposits, and moving costs.
- 3
Test the plan against a high-utility month, a reduced-hours month, and one unexpected expense.
See how it works.
Jordan lowers the search ceiling after adding parking, electricity, renter's insurance, and a longer commute to the advertised rent.
Did you cover these?
- Your work includes a monthly housing ceiling, move-in cash target, and three-scenario affordability worksheet.
- Check this common mistake: Using advertised rent as the entire housing cost or treating approval as proof that the unit is affordable.
- Your ceiling leaves room for essentials and a buffer, and every recurring and one-time housing cost has a named assumption.
What to finish
A monthly housing ceiling, move-in cash target, and three-scenario affordability worksheet.
Watch for this
Using advertised rent as the entire housing cost or treating approval as proof that the unit is affordable.
How can I tell I understand it?
Your ceiling leaves room for essentials and a buffer, and every recurring and one-time housing cost has a named assumption.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
You’ll get an explanation for each answer. Signed in? Your results save to your account.
Pass the check. We’ll save the progress.
Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
Go to the knowledge checkOptional course overview video
Things to Consider When Renting a Home
From Khan Academy. Watch here or open it on YouTube .
Watch for an idea you can use in the practice below. You can pause or skip this optional overview.Tools, templates, and lesson sources
Tools and templates
Tools open in a new tab so you can keep your place here.
Sources and further reading
Explore the references behind this lesson.
Report a problem with this lesson
Tell us what went wrong. Please leave out personal information and private project contents.