\n<\/p>\n
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- Of the zip codes we had data for, 54% had median 2-bedroom rents exceeding half of the median household income. <\/strong>\n<\/li>\n
- The median rent for a two-bedroom in Los Angeles is $2,838 per month, and will require $113,520 to secure. That\u2019s about 185% of the LA median household income. With $61,388 a family could afford rent of just $1,535 per month; just a handful of LA neighborhoods.\n<\/li>\n
- The zip code 91436 (Encino) tops the affordability list, requiring only 24% of the annual household income<\/strong>. This is largely influenced, however, by the high median household income relative to the median 2-bedroom rental price. <\/li>\n
- In the zip code 91316, however (also in Encino), the affordability numbers are significantly different, highlighting the vast income discrepancies even in adjacent zip codes. While zip code 91316 ($2,500) and zip code 91436 ($2,800) have median 2-bedroom rents that are somewhat comparable, the disparity in the household incomes in zip code 91316 ($66,128) vs. zip code 91436 ($137,683) has a large impact on affordability.<\/strong>\n<\/li>\n
- It should come as no surprise that the most expensive neighborhoods to rent an apartment were near the coast in the neighborhoods North of Montana (zip code: 90402), Eastern Malibu (zip code: 90265), and Pacific Palisades (zip code: 90272).\n<\/li>\n<\/ul>\n
<\/p>\n
The 40x Rule<\/strong><\/h3>\n
<\/p>\n
To calculate what is and isn\u2019t affordable, we used the 40x rule. This is the rule of thumb for most landlords in pretty much every major city. This guideline says that the household income must be at least 40 times the monthly rent. For example: the median rent for a two-bedroom in Los Angeles is $2,838 per month, and will require $113,520 <\/strong>to secure. That’s about 185% of the LA median household income. With $61,388 a family could afford rent of just $1,535 per month; just a handful of LA neighborhoods.<\/p>\n
There are exceptions to this rule: If you have vast savings or a guarantor whom makes 80 times the rent, a landlord is likely to let you slide without meeting the income requirements. It\u2019s also not unheard of for a landlord to request last month\u2019s rent in addition to the first month and security deposit for those with below average credit \/ income. Our \u201chow much can I afford<\/a>\u201d guide can give you a little more info on these rules and some ways to overcome them.<\/p>\n
So how much DO <\/strong>you need in order to live in a Los Angeles neighborhood?<\/p>\n
The Map Below Shows the Affordability of 2-Bedroom Apartments in Los Angeles Based on Zip Code<\/h2>\n
