Income Needed to Rent in Fort Collins: A Worked Example
At the common 30% of income guideline, a typical Fort Collins rent of $1,716 a month calls for about $68,640 a year in income. The math below shows how to check any rent against your own pay.
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To rent a moderately priced two-bedroom in Fort Collins without spending more than 30% of your income on housing, you need about $65,840 a year. Multiply it by 12, then divide by 0.30.
A one-bedroom at $1,350 a month [4] works out to about $54,000 a year. If rent takes more than 30% of your income, you count as cost burdened [5], so earning less means rent squeezes the rest of your budget.
Below, the calculation runs step by step, including income-restricted rentals that use separate limits.
How do you work out the income a rent requires?
To find the income a rent requires, divide the monthly rent by 0.30, then multiply the result by 12. The 30% guideline means rent should be no more than 30% of your gross, or before-tax, monthly income.
Start with a real rent figure. A typical Fort Collins renting household spent about $1,716 on rent a month [1]. Using that number shows how the two steps work before you test your own rent.
Run the same two steps with your own rent. Compare the result with your gross monthly income, which is your pay before taxes and deductions.
You can also reverse the math. Multiply your gross monthly income by 0.30 to find the highest monthly rent that fits the guideline. Dividing by 0.30 and multiplying by 0.30 are opposite steps, so both approaches give the same answer.
What do lower and higher rents mean for the income you need?
Zillow's Fort Collins apartment listings set the low end of the range: one-bedroom units start at $1,196 a month, and two-bedroom units start at $1,525 [2].
At the 30% guideline, a $1,196 rent needs about $47,840 a year in gross income [2]. That is the minimum income for a one-bedroom at the starting price.
A $1,525 two-bedroom rent needs about $61,000 a year [2]. The $329 monthly gap between the two sizes adds about $13,160 a year in required income [2]. So each bedroom step adds several thousand dollars to the income you need.
Treat these numbers as a range, not a budget. They are starting prices from a listing page, not typical rents [2]. They show the cheapest listed units, so the rent you actually pay may be higher.
Do income-restricted rentals use different income limits?
Income-restricted rentals are measured against area median income (AMI), and the Coloradoan's Fort Collins affordable housing glossary lists the 2023 figures: $75,200 for a single person and $107,300 for a family of four [3]. Because the limit rises with household size, a family of four has a higher income ceiling than a single renter.
The glossary also gives an example of the income levels used in these programs. A four-person household earning 80% of AMI would have about $85,840 in income [3]. If your household has four people and earns at or below that amount, your income falls within this example range. A higher income would sit above it.
To use these figures, match your household size to the right line. A single person is measured against $75,200, while a four-person household is measured against $107,300 [3]. Then compare your gross income with that line, not with the market rent of the unit.
These are 2023 figures, so the current limits may be different. Check current limits with the program's own office before you apply.
What should you do with this number?
The one thing to remember is that the rent you are considering sets the income you need. Divide that rent by 0.30, then multiply by 12, to get the annual income it needs. Run the calculation on the actual unit you are considering, because each rent gives its own answer.
If your gross income falls short, compare a smaller unit or a lower rent before you sign. Lowering the rent lowers the income figure, so you can test a second listing with the same two steps. For how rent varies by bedroom size, see the cluster guide on average rent by bedroom size in Fort Collins.
Sources
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