Think your rent is too high? Well, now you have a way to find out.
The Urban Institute, a research center in Washington D.C., created this calculator below — which compares rent costs with local incomes in a particular area — so you can see if you’re considered “rent burdened.” In this analysis, you’re paying too much if more than 35 percent of your income goes to rent.
“Though homeowners build equity when housing prices rise, renters face a much different reality: housing-price inflation directly affects renters’ ability to spend or save for the future. And unlike homeowners, renters see no return on their dollar,” wrote Rob Pitingolo for the Urban Institute.
You might think that living in expensive cities is particularly difficult for renters, but the analysis finds it’s not necessarily the case. It all comes down to income. If people can afford the rent because they have higher incomes, they’re not rent burdened.
The graphic also shows how Mainers’ struggle with rent has increased over the last 20 years. In 1990, for instance, less than half of Levant was considered rent burdened. In 2010, more than 80 percent was considered rent burdened.
