Yearly Gross Income Requirement for Rental Application in New Jersey

[Andy S.]

Hello,

I was wondering, for New Jersey,  how much I must look for rental applicant's yearly gross income for rent affrdability. 

For example for a rental with $2700/month rent with folling scenarios, how much mimum income would be considered adequate?

1. Single adult + 2 kids

2. Single adult + 1 kid

3. Married Adults + 2 kids

What if there is 1 samll dog/cat added to each of the scanarios above?

Any advice would be highly appreciated.

Thanks

[Kevin Sobilo]

@Andy S., a few comments to consider:

1. All 3 scenarios would be the SAME! A lawyer might be able to answer this better, but most rentals fall under fair housing laws (there are exceptions) and that protects against discrimination based on familial status which means children or someone who is pregnant.

Using different rental criteria for people with children than without, COULD be seen as a violation of that law. A lawyer could speak to it better, but I would be concerned about screening this way.

2. The typical rule of thumb which works well is GROSS monthly income at least 3x the rent. So, that comes out to $97,200 gross income per year.

3. I think #2 covers 90% of the work, BUT there are people whose debts are out of line with their income. So, I also require that :

Monthly Rent + Monthly Debt Payments <= Gross MONTHLY Rent * 45%

This is similar to how mortgage qualifications work by considering the applicants' debt loan along with their housing cost in relation to their income. Their debts would include not just car payments, student loans, and credit card payments but also things like child support paid.