15 million renters pay more for housing than they can afford. Here's how to figure out if you're one of them

15 million renters pay more for housing than they can afford. Here's how to figure out if you're one of them  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, FEB 22, 2023 YOUR WEALTH Editor's Note If you're renting, you may have heard about a rule of thumb not to spend more than 30% of your income on housing. But it's a rule that needs revisiting amid high rents, writes reporter Annie Nova. Nearly 15 million renter households in the U.S. are considered cost-burdened, meaning they're spending more than 30% of their income on rent and utilities, according to Moody's Analytics. Significant spending on housing could hinder your ability to save for other goals – and it puts you at greater risk should you lose your job or encounter another financial emergency. Experts recommend creating a detailed budget to help you determine how much of your income you can afford to put toward housing while staying on track with other financial goals and bills. "After paying for their housing, does the household have adequate income to pay for their non-housing expenses?" said Andrew Aurand, senior vice president of research at the National Low Income Housing Coalition. "If not, they are considered cost-burdened." For more advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. Kelli Grant, CFP | Deputy Personal Finance Editor @KELLIGRANT 15 million renters pay more for housing than they can afford. Here's how to figure out if you're one of them With rents rising at historic rates, deciding what you should spend is an increasingly difficult task. Housing experts have some strategies. You can avoid paying surprise taxes by picking the best investment accounts. Here's how When building a portfolio, you need to weigh the location of your assets to avoid surprise taxes. Here's what to consider, according to experts. Average 401(k) balances dropped 20% in 2022 — but few investors flinched, Vanguard research shows Although the average balance among 401(k) participants ended 2022 down 20% from a year earlier, most investors stayed the course, according to Vanguard. IRS unveils option allowing online responses to 9 of its notices. 'A step in the right direction,' says tax pro The IRS has unveiled a new option to respond to certain agency notices online. Here's what filers need to know. Gas, airfares, car insurance: How transportation costs are impacting high inflation A look at the latest consumer price index inflation data shows, in many cases, the cost of going places is still high. Medicare expenses in retirement could top $383,000 for a couple with high drug costs, study finds The amount you spend on health care in retirement depends at least partly on how you choose to supplement your basic Medicare coverage. Economists still worry recession could be on the way. But here's how a soft landing may still be possible The path to lower inflation may not be a straight line, according to economists. Here's why the Fed's efforts to curb high costs may lead to a recession. Apprenticeship programs are becoming more popular as an alternative to college Some experts say the value of a bachelor's degree is fading and more emphasis should be directed toward career training. How to pay 0% capital gains taxes with a six-figure income in 2023 There are higher taxable income thresholds for the 0%, 15% and 20% long-term capital gains brackets for 2023. Here's what to know. Elder financial fraud is a $3 billion-a-year problem. This bill in Congress aims to help prevent it The measure, which cleared the House last month and awaits action in the Senate, lets investment companies postpone redemptions if exploitation is suspected. CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2023 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS