The best way to cover a rent increase, if you can swing it, is to get a raise. That’s money out of your employer’s pocket and not your own – which, if they want to keep you and keep you happy, is a solid deal for everyone. But how much of a raise, exactly, do you need to ask for?
Rents have been growing relentlessly for years, and the share of income renters need to devote to rent payments each month is near an all-time high. And with rents expected to gain another 1 percent nationwide through February 2018, and by far more in many local markets, the nation’s renters must figure out how to afford another bump.
Some will find roommates. Others will locate smaller digs, or apartments in more affordable areas. Still others will cut back on dining out, vacations, clothing and cable. But the best way to cover a rent increase, if you can swing it, is to get a raise. That’s money out of your employer’s pocket and not your own – which, if they want to keep you and keep you happy, is a solid deal for everyone.
But how much of a raise, exactly, do you need to ask for?
Here’s a calculator to help with that math,[1] assuming you’re only trying to keep up with the rent (it’s on you to figure out how much extra cash you’ll need to cover your next extravagant vacation or support your newfound yachting obsession). Everyone’s exact situation is unique, which is why we let you enter all your own details. But just as an example: If you make the median annual salary in the Los Angeles area ($56,900), pay the median monthly rent ($2,642), and expect your rent to rise in line with our forecast (3.6 percent, or $96 a month) this year, then you’ll need a raise of 2.02 percent (or $1,152 for the year) to stay even.
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[1] The calculations do not account for taxes.
