American Community Survey data<\/a> for median household income as well as our own rental data.<\/p>\nThe ACS data shows highly varying incomes across the counties that make up the Boston\/Cambridge Metro Area. Suffolk median household income is estimated at $61,796<\/strong>, while Essex is a bit higher at $73,901. Middlesex was significantly higher at $95,249 as is Norfolk County at $92,696. The lower income in Suffolk County greatly contributed to its not being affordable, despite the most expensive neighborhoods in the metro area were in Suffolk County.<\/p>\nSome of our key findings this year include:<\/strong>
\n<\/p>\n\n- Of the zip codes we looked into, only 16% had median 2-bedroom rents exceeding half of the median household income. <\/strong> This is a stark contrast to both LA and Miami, where upwards of 54% of zip codes had 2-bedroom rents exceeding half of median household income.\n<\/li>\n
- It should come as no surprise that the most unaffordable neighborhoods to rent an apartment were near the center of Boston, where, with some exceptions, the 2-bedroom rental prices vastly exceed the incomes in the area.\n<\/li>\n
- The Seaport District (specifically zip code 02210) manages to simultaneously be one of the most expensive places to live from a median-rent perspective ($4,628), but with the incredibly high household income, still manages to masquerade as “affordable” with a median household income of $155,313. With such a high median household income, the high rents “only” cost 35.8% of said income.\n<\/li>\n
- Asking rents in areas like Washington Park (zip code 02121) and Mission Hill (zip code 02120) highlight the stark disparity between what people can afford and the real estate that’s currently available for rent. With a median household income of $26,313 in Washington Park and $29,592 in Mission Hill, the 40x rule would only allow for those households to afford 2-bedroom apartments costing $657.83 in Washington Park and $739.80 in the Mission Hill – prices far lower than the median 2-bedroom asking rents.<\/strong>\n<\/li>\n
- The Chinatown \u2013 Leather District<\/strong> neighborhood (zip code 02111) topped the list of least affordable neighborhoods with median rent of $3,600 per month, requiring $144,000 of annual income to afford. That\u2019s over 200% of the Suffolk County median household income. Not too far behind was Fenway (zip code 02115), with income of $124,000 required to secure a $3,100 2-bedroom there.\n<\/li>\n
- Anything that is affordable?<\/strong> Neponset \u2013 Port Norfolk (zip code 02122) ($1,695 for a 2-bedroom), Downtown Woburn (zip code 01801) ($1,800), and Wollaston (zip code 02170) ($1,850) are all very affordable from a rent perspective.\n<\/li>\n<\/ul>\n
The 40x Rule<\/strong><\/h3>\nAnother metric we used to calculate what is and isn\u2019t affordable is 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 be at least 40 times the monthly rent<\/strong>. For example: 2-bedroom median rent across Boston is currently $2,700<\/strong>. A Boston household will need to make at least $108,000 combined for an apartment at that price. This is above any of the ACS estimates, <\/strong>even the more affluent Middlesex and Norfolk Counties.<\/p>\nThere 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>\nSo how much DO<\/b> you need to make to live in a Boston neighborhood?<\/p>\nThe Map Below Shows Income Required for a 2-Bedroom Apartment in Boston\/Cambridge<\/strong><\/h2>\n
