Rent-to-Income Ratio: What it’s and why it’s important?
The Rent-to-Income Ratio: A Financial Guide The rent-to-income ratio is a fundamental metric in housing finance, measuring the percentage of a person’s income allocated to rent. It serves as a crucial benchmark for both tenants and landlords. Definition: The rent-to-income ratio is calculated by dividing monthly rent by gross monthly income. For example, a $1,200 monthly rent on a $4,000…