This story is part of CNBC Make It’s One-Minute Money Hacks series, which provides easy, straightforward tips and tricks to help you understand your finances and take control of your money.
There’s been a lot of discussion about affordable housing recently, especially as home prices and rents hit record levels. Is your current home affordable? Here’s how to tell.
The most common rule of thumb to determine how much you can afford to spend on housing is that it should be no more than 30% of your gross monthly income, which is is your total income before taxes or other deductions are taken out.
For renters, that 30% includes rent and utility costs like heat, water and electricity. If you…