Apartment hunting in Charlotte? These are ways to figure out how much rent you can afford
Rents in the Charlotte metro area are on the rise as the region continues to grow, raising concerns about affordability.
Amid a hot real estate market, suburban areas in the region as well as the city have seen rents go up in recent years.
Here’s how to figure out how much rent you can afford and what to expect from the Charlotte market:
How to budget for rent
To figure out how much you can afford to pay in rent, you’ll need to know a few numbers from your personal finances: your gross monthly income, net income and the sum total of your other expenses.
Your gross income is your total income before taxes and other deductions, such as 401K contributions. Prospective landlords and property managers will often look for your monthly gross income to be at least about three times the monthly rent and will want to verify it through official documentation, such as a pay stub or offer letter.
A good rule of thumb, finance experts advise, is that your rent shouldn’t exceed 30% of your monthly gross income.
Net income is how much money you have left in your paycheck after deductions, such as health insurance and taxes, are taken out. Basically, it’s how much money is deposited into your bank account each month and is a helpful number for figuring out how much you can spend.
Once you know those figures, it can be helpful to use a rent calculator, available from many real estate sites such as Zillow.com and Apartmentlist.com. By entering your gross income and net income and applying the 30% rule, they’ll give you an estimate of how much you can afford and how much money you’d have left over each month if you paid that rent.
When looking at those numbers, you should also keep in mind the sum total of your other expenses, such as car payments and groceries. You want to make sure that the combination of those costs and your rent won’t leave you with less money than you’re comfortable with having in the bank.
How to find Charlotte apartments in your budget
Once you’ve figured out what you can pay in rent, you can start searching for apartments that fit your budget.
Many real estate sites, such as Zillow.com, Apartments.com and Apartmentlist.com let you search for apartments based on the maximum amount you want to spend on rent. They also let you narrow down your search based on what neighborhoods you’re interested in and what features the apartment offers.
Classified ads often also include rental opportunities as do some local real estate agencies and property management companies.
Sometimes people seek roommates on sites such as Craigslist, though you should be careful to avoid scams and do research before meeting up with strangers.
When you find a place you like, you can schedule an in-person or virtual tour where you’ll have a chance to ask questions and verify the rent price. Make sure to get clarity on what’s included or not included in the rent, such as utilities and internet service.
What is the average rent in Charlotte?
The average rent in the Charlotte region is $1,430 per month, the Observer previously reported, according to data from real estate research firm CoStar.
That figure is based on rent prices in the 10 counties that make up the metro area. Released in September, it reflected a 16.7% increase year-over-year from 2020.
Applying the 30% rule, you’d need a salary of more than $56,000 per year to afford that rent. The median household income in Charlotte, according to the U.S. Census Bureau’s most recent data, is $62,817. It’s $43,940 for Hispanic households and $39,508 for Black households but just over $92,000 for white households.
The real estate site Apartments.com breaks down prices based on apartment size, putting the average monthly rent for a studio apartment in Charlotte at $1,425 and for a one bedroom at $1,350. A two bedroom apartment will cost you, on average, $1,577 per month, their data shows, and a three bedroom $1,828 per month.
In a report to county commissioners Thursday, Mecklenburg County economist Michael Brandon Simmons said only about 1% apartments in the county have a rent rate of $1,000 or less per month.
Charlotte Observer reporter Lauren Lindstrom contributed to this story.
This story was originally published January 28, 2022 at 1:15 PM.
