California’s cost of rent ranked the least affordable in the U.S. with an average of $1,901, which is significantly higher than the average rent of $1,249 nationwide, according to a study.
Earnest, a San Francisco-based financial services company, based its data from several verified loan applicants across the country within a three-year period.
Cost of Shelter
The study noted that you would spend an estimated $1.6 million on necessities such as food, housing and transportation in an average lifetime. Housing will account for almost one-third of that amount and may more or less be expensive, depending on where you live in the U.S.
Los Angeles renters pay the most expensive rent not just in California, but also in the country. At $2,600, tenants in the city spend 23.9% of their income on rent alone. Quite surprisingly, New York ranked as the 16th most expensive city in the country. On the other hand, those in West Virginia only pay a median rental of $800 price, which is the least expensive.
Landlords in California should consider investing in Section 8 housing, since expensive rents mean more buyers are looking for affordable properties. You can screen low-income renters as you would select regular applicants, contrary to what you may have known about Section 8 tenants.
Perhaps the biggest benefit of choosing to invest in Section 8 housing involves constant cash flow every month. The government covers up to 70% of the rental amount payable to you. If you decided to accept Section 8 housing tenants, you also improve your competitive edge against other landlords since more people will be interested in signing a lease.
Have you considered buying a home to stop worrying about rents each month? Other factors affect the affordability of rents such as your income, since a huge salary may allow you to cover monthly installments on a home loan.