What can I actually afford

[EEpa]

My program offers a full tuition waiver and then a stipend on top of that. The stipend is about 22k and the letter said my pay per period is about 870. Now that I'm starting my apartment search, I'm nervous about choosing an affordable place since I will not actually get paid until I've already signed a lease. Does anyone have any idea how I can figure out approximately what I'll make a month so I can figure out a budget.

[themmases]

This depends on a few things: whether the pay you were quoted already includes any deductions for taxes, benefits, etc.; where you're looking for an apartment; and what you're looking for in an apartment.

 

If $870 is really what your paycheck will say week to week and any taxes will have already been withheld, then you can just budget based on that amount. If you may owe taxes the next year, it would be smart to just withhold that money from yourself so you know you can pay it later.

 

In my market (Chicago), 30-33% of your monthly income is considered a reasonable amount to spend on rent. (The person who showed me my apartment actually asked me multiple times if I made "three times the rent" before letting my apply.) If utilities are included, especially expensive ones like heat, it could be reasonable to spend more like 35%. However, in markets that are very expensive or very inexpensive this might be different.

 

You can find out what's reasonable in your area by contacting landlords whose property you're interested in and asking, looking for a tenant union in the area and asking them, or asking a contact in the financial aid office how they estimate cost of living. You can also look at apartment and roommate ads in the area-- many of them will specifically be looking for students and grad students-- and see what the going rate is for someone in your situation. Landlords in areas around universities are usually used to renting to grad students, and will spell out what arrangements they want (e.g. deposit) in their ad or when you contact them.