How Much Money Should I Be Able To Live On

There is no one respond to how much money you need to brand to live comfortably, simply one oft-used rule of thumb in budgeting is the 50/xxx/20 rule — which calls for half your income to go to necessities, 20% to savings and investments and thirty% for splurges and fun.

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For most Americans, that'southward a pretty sensible approach to defining a living wage, but plenty of residents living in America's largest cities are probably reading that and thinking "Are yous insane? Half my income doesn't even cover my rent, and I live in a converted dumbwaiter."

And information technology's truthful: how much money you lot demand to live comfortably is typically much higher in the big metropolis, putting the 50/xxx/xx rule out of reach for most of its residents. That's why a new GOBankingRates study lays out only how much yous need to earn to live comfortably in each of America'due south fifty largest metropolises based on the cost of living past urban center.

Using Zillow to calculate housing costs in each locale and Sperling'south Best Places to gauge the cost of other necessities similar transportation, groceries and healthcare, the finish event is a articulate sense of just how much you would need to be bringing in to stick to the 50/30/xx rule at boilerplate levels of spending in each category.

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With the boilerplate bacon in each major U.Due south. city falling significantly short of what'south needed to alive comfortably in that location, the study should make it clear that a lot of America's urbanites probably have to make cuts elsewhere to afford living in the large metropolis. So if y'all're thinking about living in a major city, keep reading to see the ideal salary and cost of living in America's biggest cities.

Albuquerque, New United mexican states

Median income: $53,936
Income needed if yous're a homeowner: $69,778.62
Income needed if you're a renter: $64,954.62

Albuquerque isn't going to top whatsoever salary comparison by city with the median earner pulling downwardly just over $53,000, which is below the average salary in the U.Southward. But, with "just" $xi,018.62 separating a median earner who rents from the cost to alive comfortably in Albuquerque, information technology'due south really amidst the more affordable major cities in the country.

Arlington, Texas

Median income: $63,351
Income needed if you're a homeowner: $83,533.47
Income needed if you're a renter: $73,717.47

Arlington residents are likely struggling a footling to get past with a little over $20,000 separating a median earner from what they would demand as a homeowner in the city. Homeowners are paying more in almanac necessities than renters, as well, by near $10,000.

Atlanta, Georgia

Median income: $64,179
Income needed if you're a homeowner: $92,691.45
Income needed if y'all're a renter: $74,163.45

It's actually cheaper to hire in Atlanta by a meaning amount, almost $19,000 less. However, renters are falling short past almost $10,000 in terms of the median salary and income needed to pay for annual expenditures.

Austin, Texas

Median income: $75,752
Income needed if you're a homeowner: $132,584.88
Income needed if y'all're a renter: $79,520.88

If you're not earning six figures, you should reconsider living in the Texas capital based on just how costly it tin be. However, if you're dead assail enjoying the urban center'southward renowned music scene on a nightly basis — office of why it's often no stranger to lists of the best places to live in the U.S. — consider renting. Renters pay a whopping $53,064 less than homeowners here.

Baltimore, Maryland

Median income: $52,164
Income needed if you're a homeowner: $65,839.60
Income needed if you're a renter: $71,911.threescore

To alive in Baltimore, ironically you can more comfortably afford to buy a home than hire one, with income needed for dwelling owning being most $half dozen,000 less than renting. Annual expenditures are also higher for renters, so maybe Baltimore is the identify to make your domicile owning dreams come true.

Boston, Massachusetts

Median income: $76,298
Income needed if you're a homeowner: $137,849.ninety
Income needed if y'all're a renter: $93,401.xc

Living in Beantown might require an especially talented bean counter to be sure you can pay all your bills. In Boston y'all need to make well over $130,000 to live comfortably while owning, and over $93,000 to live comfortably while renting.

Charlotte, North Carolina

Median income: $65,359
Income needed if y'all're a homeowner: $84,691.76
Income needed if you're a renter: $74,155.76

While needing $84,000 a year to go by is a bit pricey, the healthy $65,359 a yr that the median earner in Charlotte is making means residents are likely struggling less than they would elsewhere. Homeowners are virtually $20,000 brusk of what they would demand, putting them among the cities with the smallest gaps betwixt what virtually people are earning and what it costs to live in that location.

Chicago, Illinois

Median income: $62,097
Income needed if you're a homeowner: $84,487.25
Income needed if you're a renter: $74,311.25

The Windy Urban center isn't peculiarly expensive when stacked up against other urban areas that are amidst the five largest, but its relatively modest median income ways many residents are likely still struggling to make ends meet. The median earner in Chi-town is more than $22,000 brusk of what it costs to live comfortably if they own. Every bit for renters, they'll need a bit more than $12,000 more than.

Colorado Springs, Colorado

Median income: $67,719
Income needed if you're a homeowner: $92,352.67
Income needed if you're a renter: $72,480.67

Whether you're renting or owning, you can expect to spend under $17,000 a twelvemonth on housing in Colorado Springs. Withal, the income needed to live comfortably differs pretty significantly; homeowners need to earn almost $20,000 more per year.

Columbus, Ohio

Median income: $54,902
Income needed if y'all're a homeowner: $69,710.87
Income needed if you're a renter: $62,534.87

Ohio'southward capital is 1 of the more affordable big cities to alive in, with the income needed to live comfortably falling under $70,000 for homeowners. Renters will need to make about $8,500 more than than the city's median income to alive comfortably, however.

Dallas, Texas

Median income: $54,747
Income needed if you're a homeowner: $84,165.14
Income needed if you're a renter: $70,821.14

The median income below $55,000 a year likely makes the costs of Dallas significantly more difficult to handle than in other cities. Average earners who hire could exist particularly squeezed, with their income coming up over $25,000 short.

Denver, Colorado

Median income: $72,661
Income needed if you're a homeowner: $116,797.lxxx
Income needed if you're a renter: $79,501.fourscore

Denver another of the cities where you demand to articulate six figures to live comfortably if you plan to own a domicile, and about $fourscore,000 if you promise to rent. That leaves the median homeowner and renter $44,136 and $6,840 short of what they need each year, respectively.

Detroit, Michigan

Median income: $32,498
Income needed if you're a homeowner: $51,281.71
Income needed if you lot're a renter: $65,753.71

Detroit is another of the cities on this list where you pay more to hire than to own. Even even so, with such a depression median income of less than $33,000 per year, that leaves the median homeowner and renter $18,783 and $33,255 curt of what they demand each year, respectively.

El Paso, Texas

Median income: $48,866
Income needed if you lot're a homeowner: $61,014.72
Income needed if you're a renter: $62,814.72

While incomes in El Paso are relatively low, the income needed to alive comfortably is also amid the lowest of the nation'southward 50 largest cities. With homeowners needing to make less than $61, 000 a yr — and renters under $63,000 — the gap from a median income to a comfortable i is betwixt $12,000 and $xiv,000 for both renters and buyers.

Fort Worth, Texas

Median income: $64,567
Income needed if yous're a homeowner: $82,288.97
Income needed if you're a renter: $72,712.97

Residents of Fort Worth have a median income that's nearly exactly $ten,000 a yr higher than that of neighboring Dallas. That's especially good news for renters. And it's even better news for homeowners as the price to live comfortably is about $2,000 a yr less in Fort Worth than it is in Dallas despite the higher incomes.

Fresno, California

Median income: $53,368
Income needed if you lot're a homeowner: $83,086.xvi
Income needed if you're a renter: $71,902.16

Fresno is one of the cities where the income needed to alive comfortably falls under $83,000 a year for owners and under $72,000 for renters. Still, with median incomes falling nether $54,000 a yr, owners and renters alike are virtually $30,000 and $xix,000 short of what they demand to live comfortably.

Houston, Texas

Median income: $53,600
Income needed if you're a homeowner: $74,945.06
Income needed if you're a renter: $67,145.06

The land'southward 4th-largest metropolis is pricier for buyers than renters. You'll need to make over $vii,800 a year more to alive comfortably while owning than renting. Either way, though, with median incomes at just over $53,000, the average Houston resident is coming up well short of that level.

Indianapolis, Indiana

Median income: $fifty,813
Income needed if you're a homeowner: $61,434.55
Income needed if you're a renter: $61,458.55

The cost of living in the Upper Midwest trends on the lower side and Indianapolis isn't outside that trend. While it's still much higher than the median income of $fifty,813 a twelvemonth, the income needed to live comfortably while owning a home is only over $61,000 a year.

Jacksonville, Florida

Median income: $55,531
Income needed if you're a homeowner: $74,674.60
Income needed if you're a renter: $74,218.60

Another one of the cities where the salary needed to alive comfortably is under $80,000 for both renters and buyers, Jacksonville could exist a relatively affordable mode to enjoy both city life and the sunny Florida climate. And with the income needed to live comfortably almost $20,000 over the median wage for homeowners, information technology'due south also one where the costs are meliorate aligned with people's earnings.

Kansas City, Missouri

Median income: $56,179
Income needed if you're a homeowner: $64,251.85
Income needed if you're a renter: $64,587.85

The gap between the income needed to alive comfortably and the $56,179 a year that a median earner makes in Kansas Urban center is amidst the lowest in this study for both renters and homeowners. The typical homeowner is just $8,079 brusque what they need to alive comfortably while the typical renter is $viii,408 below that level.

Las Vegas, Nevada

Median income: $58,377
Income needed if you're a homeowner: $92,342.52
Income needed if you're a renter: $80,030.52

The income needed to alive comfortably in Las Vegas is below the average level for the 50 cities included here. Merely, with a median income of $58,377, homeowners with average earnings are short of what they would need to maintain a 50/thirty/xx budget assuming boilerplate costs.

Long Beach, California

Median income: $66,410
Income needed if you're a homeowner: $145,556.27
Income needed if you're a renter: $86,276.27

Located to the southeast of Los Angeles, Long Beach is another of the cities where the income needed to live comfortably exceeds $100,000 for homeowners. It's not much better for renters, who need to earn over $86,000. It'due south also a city where that level is much lower for renters — with those choosing not to purchase needing about $59,280 a twelvemonth less than their counterparts shouldering a mortgage.

Los Angeles, California

Median income: $65,290
Income needed if you're a homeowner: $166,444.75
Income needed if you're a renter: $91,876.75

The country's second-largest city is well-known for its sunny climate, palm trees and entertainment manufacture, simply it's possible that its loftier price of living should be among its most notable traits. If y'all accept a mortgage in Los Angeles, you'll need over $166,000 in income to comfortably fit into the fifty/xxx/20 budget.

Louisville, Kentucky

Median income: $54,929
Income needed if you're a homeowner: $64,089.66
Income needed if yous're a renter: $62,217.66

Louisville'due south relatively modest cost of living helps contribute to incomes needed to alive comfortably that are under $65,000 for both renters and buyers.

Memphis, Tennessee

Median income: $41,864
Income needed if you're a homeowner: $53,910.13
Income needed if you're a renter: $65,790.13

Memphis is another metropolis where residents aren't making enough to really have reward of the low cost of living the way ane would promise. While you would need less than $66,000 a year to live comfortably in that location, the median earner in the city is making less than $42,000 a year.

Mesa, Arizona

Median income: $61,640
Income needed if y'all're a homeowner: $89,054.87
Income needed if you're a renter: $79,454.87

The income needed for a comfy lifestyle in Mesa is merely a $10,000 difference for renters and buyers. Notwithstanding, that's $27,000 more than the median earner can afford for homeowners, and more than $17,000 for renters.

Miami, Florida

Median income: $44,268
Income needed if you're a homeowner: $111,043.77
Income needed if you're a renter: $90,019.77

Miami has the unfortunate distinction of being both one of the 13 cities where the income necessary to live comfortably exceeds $100,000 for buyers and over $90,000 for renters, and yet the median income is nether $45,000 a twelvemonth. That leaves a huge $l,000 to $lxx,000-plus gap between what people are making and what they need to earn to live comfortably whether you ain your dwelling or rent information technology.

Milwaukee, Wisconsin

Median income: $43,125
Income needed if you lot're a homeowner: $62,539.12
Income needed if you're a renter: $62,755.12

While the cost of living is relatively minor in Milwaukee, and then is the median income. With half of the city making $43,125 or less, even that $62,539.12 a year needed to alive comfortably while paying a mortgage is almost $20,000 more than than residents who own are making.

Minneapolis, Minnesota

Median income: $66,068
Income needed if yous're a homeowner: $81,012,18
Income needed if y'all're a renter: $67,236.xviii

Minneapolis is a relatively affluent city, particularly when compared to other major urban areas in the Upper Midwest. However, despite a stronger median income, the cost of living is likewise relatively high. That leaves a median earner in Minneapolis $xiv,944 brusk of what they need to alive comfortably if they own only just $1,168 short if they rent.

Nashville, Tennessee

Median income: $62,087
Income needed if you're a homeowner: $89,932.33
Income needed if y'all're a renter: $74,164.33

Music City'southward high cost of living ways the 50/xxx/20 upkeep rule is likely non possible for many to well-nigh of its residents. Owners are over $27,000 short of what they demand to alive comfortably based on the median income of $62,087 and renters are over $12,000 short.

New Orleans, Louisiana

Median income: $43,258
Income needed if you're a homeowner: $69,695.75
Income needed if you're a renter: $67,175.75

The Big Easy is anything merely for its residents who are earning less — and there are likely enough with a median income under $40,000 a twelvemonth. It'southward much worse if you're renting, though, as median earners who don't own are around $49,000 a year curt of the income necessary to live comfortably.

New York City, New York

Median income: $67,046
Income needed if you're a homeowner: $151,390.19
Income needed if you lot're a renter: $105,742.19

While New York has long been synonymous with sky-high cost of living, information technology's actually short of the priciest urban center in this report. That fact, though, won't offering much solace to residents struggling to make ends meet. If you want to live comfortably in the Big Apple, you'll need to earn at least $151,000 a year if you're looking to own where you live and over $100,000 just to rent.

Oakland, California

Median income: $eighty,143
Income needed if you're a homeowner: $172,632.75
Income needed if you're a renter: $85,464.75

The kickoff of iii cities in the San Francisco Bay Area, Oakland is an extremely costly place to live. Despite a relatively potent median income of $fourscore,143 a year, residents hoping to own their ain home need to increase their income by more $100,000 a twelvemonth if they want to hit the fifty/30/20 rule while paying average costs.

Oklahoma Urban center, Oklahoma

Median income: $56,456
Income needed if yous're a homeowner: $62,306.36
Income needed if you're a renter: $66,842.36

Oklahoma Urban center has relatively small-scale costs compared to most major cities. Pair that with a median income over $56,000 a twelvemonth and the gap to a comfortable income if you ain your home is just over $v,800 a twelvemonth, one of the lowest levels in the study. However it'south a bigger gap if you want to rent, at $10,386 more than than the median income.

Omaha, Nebraska

Median income: $62,213
Income needed if you're a homeowner: $75,376.51
Income needed if y'all're a renter: $65,920.51

Another city where homeowners are probable coming very close to earning what they would need, Omaha's $62,213 median income is over $13,000 a yr short of what you would demand to live comfortably while covering a mortgage. Only, one time once more, this is a city where there's a clear financial argument for buying over renting.

Philadelphia, Pennsylvania

Median income: $49,127
Income needed if you're a homeowner: $73,480.45
Income needed if you're a renter: $72,640.45

Brotherly dearest might not cost a matter, but living in Philadelphia sure does. Despite a median income at most $50,000 a year, the salary necessary to alive comfortably while satisfying the l/30/20 rule is over double what the typical homeowner is actually earning and leaves renters more than than $23,000 shy of what they demand.

Phoenix, Arizona

Median income: $60,914
Income needed if you lot're a homeowner: $88,687.17
Income needed if you're a renter: $76,447.17

The nation's fifth-most populous city has a median income over $threescore,000 a yr. That's a decent wage compared to many of the cities in this study, simply it's besides well-nigh $28,000 short of what y'all need to live comfortably for buyers and almost $16,000 brusque of what renters need.

Portland, Oregon

Median income: $73,159
Income needed if you're a homeowner: $115,175.60
Income needed if you're a renter: $71,783.60

While a median income of around $73,000 a yr is relatively rare among the country's biggest cities — Portland's high cost of living might mean it won't become nearly every bit far. If you are dead attack moving to Portland, though, information technology could pay to hire instead of buying as the income needed to alive comfortably is more than $42,000 a year higher for homeowners.

Raleigh, N Carolina

Median income: $69,720
Income needed if you lot're a homeowner: $89,899.50
Income needed if you're a renter: $74,059.50

Raleigh achieves the goal of having its income needed to live comfortably falling within $21,000 of its median income for both renters and buyers. Not only is the median resident making more than $69,000 per year, but its cost of living is beneath the average for these fifty cities.

Sacramento, California

Median income: $65,847
Income needed if you're a homeowner: $100,940.07
Income needed if you're a renter: $84,068.07

California'south capital metropolis is northeast of San Francisco, Oakland and the rest of the high-cost Bay Area. However, information technology does seem as though some of the costs have migrated at that place, every bit you'll demand to make over $100,000 a year to live comfortably.

San Antonio, Texas

Median income: $53,420
Income needed if you're a homeowner: $76,097.threescore
Income needed if you're a renter: $65,921.threescore

San Antonio is a relatively affordable identify to live, with the income needed to live comfortably while paying a mortgage at just over $76,000 a year. Unfortunately, that's still quite a flake more than most residents are making with a median income just over $fifty,000.

San Diego, California

Median income: $83,454
Income needed if you're a homeowner: $168,520.41
Income needed if yous're a renter: $97,432.41

San Diego might be a not bad place to take in the Southern California sun, only yous're probable to pay dearly for the privilege. Yous'll need to earn six figures to live comfortably in the urban center. Simply, keep in mind that information technology's much cheaper to rent — with a comfy income coming in at a whopping $71,000 lower for renters than homeowners.

San Francisco, California

Median income: $119,136
Income needed if you're a homeowner: $249,793.thirty
Income needed if you're a renter: $101,905.xxx

San Francisco is the virtually affluent city in this study, with a median income of over 6 figures. Despite that, median earners there who own their own home are further from the income necessary to alive comfortably than residents of whatsoever other city on this list. Even a half dozen-effigy income is less than half what you need to own your home and nevertheless spend simply half your income on necessities in The Metropolis.

San Jose, California

Median income: $117,324
Income needed if you're a homeowner: $230,695.55
Income needed if you lot're a renter: $102,223.55

Of course, right next door in San Jose, incomes are nigh as high. All the same, the median income remains over $100,000 short of what you need to live comfortably while owning your ain home, but it's almost $nineteen,000 closer than it is in nearby San Francisco.

Seattle, Washington

Median income: $97,185
Income needed if you lot're a homeowner: $163,752.17
Income needed if you lot're a renter: $83,304.17

Median earners in Seattle are pulling downwards nigh $100,000 a year, merely that doesn't get nearly every bit far equally they might like. Once again, anyone planning to move there should seriously consider renting instead of buying: The income needed to live comfortably is a staggering $eighty,000 lower if you don't have a mortgage.

Tampa, FL

Median income: $55,634
Income needed if you're a homeowner: $88,852.52
Income needed if yous're a renter: $82,636.52

Median earners in Florida are earning only a footling more than $55,000 per twelvemonth, but that doesn't go very far for buyers or renters. Buyers volition detect themselves over $33,000 brusque of the income needed to live comfortably, and renters, $27,000 short.

Tucson, Arizona

Median income: $45,227
Income needed if yous're a homeowner: $72,983.eighteen
Income needed if y'all're a renter: $67,799.18

The income needed to alive comfortably in Tucson is between loftier $60,000s and depression $70,000s for renters and owners alike, which is on the lower end for the cities in this written report. Unfortunately, given that Tucson is among those cities where the median income only cracks $45,000 a year, both those levels fall short of what is needed to live comfortably by $20,000 or more.

Tulsa, Oklahoma

Median income: $49,474
Income needed if yous're a homeowner: $59,451.61
Income needed if yous're a renter: $62,859.61

Tulsa's one of the more affordable cities in this written report, with the income needed to live comfortably coming in nether $63,000 for both homeowners and renters. And while the median income of $49,474 is relatively low, it's still within about $21,100 of what you need to cover a mortgage and other basic necessities with one-half your salary.

Virginia Beach, Virgina

Median income: $78,136
Income needed if you're a homeowner: $84,658.08
Income needed if you're a renter: $81,322.08

No city in this study is closer to having its median income run across the salary necessary to live comfortably than Virginia Beach, though that has more to do with the over $78,000 a year earned past the median resident. Renters are but under $three,200 shy of what they demand while homeowners are within $6,500.

Washington, D.C.

Median Income: $90,842
Income needed if you're a homeowner: $138,229.78
Income needed if you lot're a renter: $87,325.78

The nation'south majuscule has one of the higher median incomes of a major American city, but it likewise has some of the highest costs. The income needed to alive comfortably there while owning your dwelling house is just over $47,000 more than what the average resident earns.

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Jordan Rosenfeld contributed to the reporting for this article.

^{Methodology: GOBankingRates found the cost of living in America's 50 biggest cities by analyzing the post-obit factors: (1) Toll of living Index for groceries, utilities, transportation and healthcare sourced from Sperling's Best Places. Each index was multiplied past the annual expenditure amount in each category from Bureau Labor of Statistics' 2020 Consumer Expenditure Survey, which measures household annual mean expenditures to determine the annual mean spending for each category; (two) Rent costs were sourced from ApartmentList'south rental data for March 2022, and were multiplied by 12 to obtain an annualized yearly spending on rent; (3) Mortgage payments were based on a 30-year stock-still charge per unit mortgage, using an average mortgage rate five.11%, which was the current average national rate at the time the study was conducted, according to the Federal Reserve Bank of St. Louis; the city's median home value for a single-family residence, according to Zillow'southward March 2022 home value index, and 20% down payment; (4) Median household income was sourced from Census Agency's 2020 American Community Survey (this is income prior to being taxed). Once all the data was found, the annual expenditure amount was calculated by adding together the annual spending for each category. GOBankingRates institute the annual expenditures for both people paying a mortgage payment and for people who are paying hire separately and the median income is subtracted by annual expenditures for those paying a mortgage and those renting to meet how much coin is needed or left over for each city. GOBankingRates and then used the 50-20-30 rule which assumes that l% of income should go towards necessities, 30% should go towards discretionary spending and 20% should go towards savings. All information was collected and is upwards to date as of April 25, 2022.}

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Source: https://www.gobankingrates.com/money/economy/cost-to-live-comfortably-biggest-cities-us/

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