Affording an Apartment

If  Martin makes $76,000 per year and budgets 28% of his income for monthly rent, calculate how much he can afford each month for rent.

                           

• $1773

• $1774

• $6333

• $5000

If  Mrs. Brown makes $55,700 per year and budgets 26% of her income for monthly rent, calculate how much she can afford each month for rent.

• $1200

• $1260

• $1206

• $1207

If  Sally makes $120,000 per year and budgets 30% of her income for monthly rent, calculate how much she can afford each month for rent.

• $4,000

• $2,300

• $3,000

• $300

Hailey’s financial advisor believes that she should spend no more than 25% of her gross monthly income for housing. She makes $33,500 per year and found an apartment she likes that rents for $1,200 a month.  Based on this amount and her advisor’s recommendation, can Hailey afford to rent this house? (Round to the nearest dollar)

Step 1: Calculate monthly income:

Step 2: Calculate Hailey's rent affordability ( monthly income X by recommended percent)

a. Can Hailey afford this apartment? ___________

b. Amount she can afford for an apartment

• a. no

  b. $800

• a. yes

  b. $700

• a. no

  b. $698

• a. no

  b. $1,200

Calculate how much a person would need to make per month in order to afford a one-bedroom apartment that rents for $950 a month, if they budget 26% of their income towards rent

• $3,653

• $3,654

• $3,756

• $3,652

Calculate how much a person would need to make per month in order to afford a one-bedroom apartment that rents for $850 a month, if they budget 26% of their income towards rent

• $3,270

• $4,256

• $3,269

• $3,352

Calculate how much a person would need to make per month in order to afford a two-bedroom apartment that rents for $1,550 a month, if they budget 28% of their income towards rent

• $5,845

• $5,654

• $5,535

• $5,536

Calculate how much a person would need to make per month in order to afford a three--bedroom apartment that rents for $1,700 a month, if they budget 26% of their income towards rent

Round to the nearest dollar

• $5,546

• $6,538

• $6,539

• $5,547

True or false:

A high credit score is good

• True

• False

A tenant is:

• the person who owns the rental property

• the bank

• the person who pays rent in order to live in a rental property

• a person who sells a rental property