Credit/Background/Evictions Checks Galore + 3X Rent Rule.. Yet EVICTIONS SURGE IN USA

[Account Closed]

I highly doubt credit and background checks are outdated, for if anything, they are continuously competitive and streamlined hot tool commodities.

Perhaps the 3X Rent = Minimum Monthly Salary qualifier is outdated?

First, where does the 3X Rent = Minimum Monthly Salary basis to afford the Rent come from?

It comes from the threshold that had been set originally at 20% by the United States National Housing Act of 1937.

By 1968 the Housing and Urban Development Act raised the 'rent threshold' to 25 percent of family income.

By 1981, Freddie Mac, Fannie Mae & FHA underwriting set the 'mortgage threshold' to 30 percent, which today remains the threshold/standard for 'affordability' most housing programs -whether rent or mortgage.

So, what has changed in household spending patterns since 1981?

Well, the following article, upon which the above stats are derived, explains:

http://www.census.gov/housing/census/publications/...

"Figure 3 - Share of Renter Costs for Single-family Homes" (Page 5, at least on my browster)

One look at the graph and is clear that in my state, CA, rents are significantly higher than all the other states sampled (MA MN WI FL LA MS CA). So tis clear enough for me; all the more reason to set the bar up a notch to 4X rent monthly salary requirement, not 3X. (Yes, I have yet to see how that works with how long it takes to fill vacancies and if it actually helps avoid lates and evictions)

But, lets face it: alot has changed in household spending since 1981.

Back then, did household have credit cards debts averaging $15k?

reference:

https://www.nerdwallet.com/blog/credit-card-data/a...

Back then, did households have student loan debts averaging $33k?

reference: above

How about Cell phones bills around or above $333 per household?reference: http://www.wsj.com/articles/SB10000872396390444083...

(i mean seriously, back in 1981 did anyone in ur household even have a cellphone?)

And last but not least nor really last either, did households have Time warnercable TV and home high speed internet bills averaging $106/mo?

(likewise, well in1981 i was barely learning to write let alone type but highly doubt even dialup was around, was it?)

reference: http://qz.com/243001/the-incredible-rising-interne...

Not sure how to add up all those extra costs households face today which most they likely didn't face back in 1981 since it would depend on the interest on $15k credit card balance as well as how much the household was actually paying off the cards besides interest, and likewise with high tuitions and college grads remaining jobless it likely at least depends whether the student loan was private or subsidized as to when interest started accruing and thus when the household member(s) responsible actually started paying of those.

But in any case, suffice it to say ( I propose) that nowadays households face multiple bills that are hundreds of dollars each that weren't even in the picture a whole generation or well, 34 years ago. This is a new generation where household members spend, spend, spend. The newest model of the iphone/android, the newest tablet, the newest and the list goes on, plus way more ppl are likely financing their late model vehicles than 34 yrs ago when more ppl simply made do with the vehicle they could actually afford to own than finance.

So to me, its a no brainer the 34yo rent affordability threshold of 30% is wayyy out of date. As exemplified by the recent and likely ongoing surge in evictions across the USA.

http://www.boston.com/business/personal-finance/20...

Evictions Surge in U.S.

Most of these renters were screened and qualified based on all the tools available to PMs and landlords today (credit checks, background checks, eviction checks, etc) so the question remains, why is there an epidemic in Americans qualifying for apartments but not staying within their budgets and obviously spending more on all *other* things than keeping the mere 30% roof over the head?

Obesity and overindulgence overall, comes to mind:

http://www.consumeraffairs.com/news04/2008/07/obes...

Study: 86 Percent of Americans Could Be Obese by 2030

"Most adults in the U.S. will be overweight or obese by 2030, with related health care spending projected to be as much as $956.9 billion, according to researchers at the Johns Hopkins Bloomberg School of Public Health, the Agency for Healthcare Research and Quality (AHRQ), and the University of Pennsylvania School of Medicine.

Their results are published in the July 2008 online issue of Obesity."

http://www.cnbc.com/id/41969508

"Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population, a record figure that will only increase if action isn