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Truly, you'd want to pin rent as 25% of income and then have the height be related to where you would need to be on the U.S. income scale as a percentile to be
by ramses0 10y ago
Truly, you'd want to pin rent as 25% of income and then have the height be related to where you would need to be on the U.S. income scale as a percentile to be able to afford it.
ie: You've got a $899,000 home sale, that's supposedly a ~$4000/mo rent, which leads towards a "25% rule" of $16,000/mo income => $192,000/yr => which is supposedly 93.9%-ile.
Going from $4000/mo => $5000/mo, it seems like it takes you to 96.8%-ile.
- stouset 10y agoThe absolute difference in dollars scales ridiculously high though once you start getting above 90%ile though. Going by percentile practically makes it a logarithmic scale.
- xapata 10y ago> Going by percentile practically makes it a logarithmic scale In theory as well. Small changes of the log of a variable are approximately equivalent to small percent-changes. Edit: Though percentile is a little different than percent-change.