According to the U.S. Department of Housing and Urban Development (HUD), a household that spends more than 30% of its annual income on rent or mortgage payments is considered “cost-burdened.” In big U.S. cities, the income needed to avoid being cost-burdened by rent varies widely.
In a new study, SmartAsset calculated the minimum household income needed to comfortably afford rent in the 25 largest cities.
In Los Angeles, the minimum household income needed to comfortably afford fair market rent for the average two bedroom is about $129,070. That is well above the city’s median household income of $62,474 and the fifth-highest income needed to pay rent among the 25 largest U.S. cities.