The 30 Percent Rule: Rethinking Housing Affordability
The 30 percent rule is an ideal cookie-cutter rule (or number) that has been nationally adopted by mortgage lenders, private landlords, nonprofit housing programs, etc. The premise behind it is a good one: spend less on housing and have more funds for other necessities. However, I dare to say that this rule is impractical and outdated in this current economy. It is outdated because it may have applied in the 1980s but it is now 2017. It is impractical because different households have different needs. Read the full article here.