4 ms·
> The fed (Department of Housing, maybe?) guideline is that you should pay no more than ⅓ of your salary in rent. That value is absolutely absurd. It seems cle
by bscphil 6y ago
> The fed (Department of Housing, maybe?) guideline is that you should pay no more than ⅓ of your salary in rent.
That value is absolutely absurd. It seems clearly intended to apply to those making under 100k a year in rent. Take the extreme case. If the highest paid employee of Mozilla makes $3M a year, does that mean their rent should cost "less than" $1M a year? What does that even mean?
Money has a decreasing marginal utility for individuals. When you talk about 54k a year in rent on a $162k salary, that's over $100k left over after you pay for rent. In other words, more than twice what I and my partner made together last year, before we had to pay rent. And we have the same expenses as anyone making that $100k after the rent is paid. Food, utilities, childcare, and so on.
One person having over a hundred thousand dollars to spend after rent has quite a lot of money and should become relatively wealthy relatively quickly. The 1/3 figure just serves to hide this basic fact.