What Your Housing Expenses Reveal About Your Wealth

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Conventional wisdom holds that you should never spend more than 30% of your income on housing. Allocate too much, the advice goes, and both renters and owners run the risk of ending up “house poor” — stuck with high mortgage or rent payments, without much left.

But the conventional wisdom isn’t one-size fits all. The rule of thumb dates back to the mid-20th century, when the US government was deciding on rent limits for families living in federally assisted housing. That morphed into a general adage that may be out of date for aspiring buyers with more income or assets.

To help you analyze your budget beyond the “30% Rule,” Bloomberg created a calculator that lets you compare how your housing costs stack up near you and across the country. It offers a clearer picture of what your income and housing budget might mean in different markets.