I was also looking at the economics of this situation and it was interesting once I crunched the numbers. (Hey this is like my real job doing Analytics). Here's the deal, relative to income I am looking at paying:
type % of gross % of net % of adjusted net*
cheap 15.00% 25.00% 17.65%
okay 18.75% 31.25% 23.08%
pimp 22.50% 37.50% 29.03%
*adjusted net is because I pay rent pre-tax out of my paycheck. So for this I take [rent*(1-taxrate)] / [(gross-rent)*(1-taxrate))]. gross is just rent/gross, net is rent/net
Now the interesting thing is.. in SF I was at these metrics:
type % of gross % of net
slum* 12.01% 18.33%
mtview** 20.21% 30.86%
sf pimp 24.00% 36.92%
* yes i slummed it in menlo park in 2002-2003 before buying in mtview.
** i owned in mtview, but i am basing it on mortgage.
So whats this mean? I guess it means if I want to pimp out I shouldn't feel so bad about it since the %'s aren't worse than my prior life.
Another interesting survey figure from a Gisco professional survey on monthly rent:
AUS Canada GBP India Singapore U.S.
Median $700 $818 $934 $141 $501 $1,000
% of salary 18% 18% 16% 12% 24% 19%



