Anyone looking for a home or renting an apartment knows it is nearly impossible to find something that you can afford and also love. The cost of living has been consistently rising and even with recent efforts and attention towards increasing the minimum wage, it\u2019s just plain difficult to meet the minimum income requirements to buy or rent a home.<\/p>\n
According to the most recent Census\u2019 American Community Survey, median annual household income for Los Angeles County is $59,134. This means that 50% of the Los Angeles population is making more than this, but also 50% is making less. If you\u2019ve been wondering if you can afford to live in Los Angeles, RentHop\u2019s data science team has done the math for you.<\/p>\n
To calculate what is and isn\u2019t affordable, we used the 40x rule. This is the rule of thumb for most landlords in pretty much every major city. This guideline says that the household income must\u00a0be at least 40 times the monthly rent. For example:\u00a0we found that the median rent for a two-bedroom in Los Angeles is $2,480 per month,\u00a0<\/strong>and will require $99,200 ($2,480 x 40)\u00a0<\/strong>to secure. That’s about 168% of the LA median household income. With $59,134 a family could afford rent of just $1,478 per month; just a handful of LA neighborhoods.<\/p>\n There are exceptions to this rule: If you have vast savings or a guarantor whom makes 80 times the rent, a landlord is likely to let you slide without meeting the income requirements. It\u2019s also not unheard of for a landlord to request last month\u2019s rent in addition to the first month and security deposit for those with below average credit \/ income. Our \u201chow much can I afford<\/a>\u201d guide can give you a little more info on these rules and some ways to overcome them.<\/p>\n So how much\u00a0DO\u00a0<\/strong>you need in order to live in a Los Angeles neighborhood?<\/p>\nThe Map Below Shows Income Required for a 2-Bedroom Apartment in Los Angeles<\/h2>\n