Rents under $600/mo and poverty

[Account Closed]

How many of you have tenants paying $600 and under who aren't living at or below the poverty line? Don't take offense. I'm well aware that $600 can rent some nice units and is enough for a mortgage payment in some parts of the country. I know that plenty of tenants are making choices about how to spend their money.

As a landlord you are presumably looking at income versus rent. A tenant making $1800/mo is making three times a $600 rent, a formula many landlords are happy with. A 4 person family making $21600 is pretty much at or below the federal poverty line level.

So how of you have tenants with $600 rents who aren't living below the poverty line?

[Sylvia B.]

Originally posted by @Account Closed:

Housing costs are cheaper in the Mid West, but paying 30-50% of your income towards housing doesn't give one that many lifestyle choices. Food, transportation and utilities aren't cheaper. A family making $50K/year and paying a $600 rent has life style choices. Less so for the family living on $21,600.

"Food, transportation and utilities aren't cheaper."

Ah, but they certainly can be!

Unleaded gas in Sacramento is currently $3.80/gal, Springfield MO is $3.23. That spread will get wider in the summer.

PG&E electric rates are currently about 20¢/kWh, Springfield, MO is about 5¢/kWh. Gas is a little harder to compare. PG&E is about $1.30/therm, Springfield MO is $13/month + 12.75¢/therm.

For food I have only anecdotal info. A couple of years ago I bought strawberries in Watsonville, flew home to MO 2 days later and bought strawberries at the grocery store (shipped from Watsonville) for $1/basket less than I paid in CA. I often found the food prices at Walmart in my mother-in-law's city (not far from Sacramento) to be higher than the same food bought at Walmart in MO.

Lower cost of living means much more than just lower housing costs.