Rent Hike Caps + Finding Affordable Housing
Biden’s plan to cap rent hikes and what it means
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📰 Interesting financial news: Stay up to date on what’s happening in the economy.
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📝 This week’s main topic: What this newsletter’s title is about!
🥰 Team CGF’s Amazon favs: Affordable yet helpful Amazon finds.
📰 Interesting financial news
Walmart and Target are slashing prices. What does that mean for inflation?(CNN)
A look into Joe Biden’s personal finances (Reuters)
Weight loss drugs drive supply issues and big earnings (Sherwood.news)
📈 What’s popping in the stock market
After rising 540% since last years, NVIDIA’s 10-for-1 stock split is coming (Ticker Symbol: NVDA)
Peloton stock down 34% from two years ago. Can they recover?(Ticker Symbol: PTON)
📝 Main topic: Biden Administration taking steps to limit affordable housing rent increases
In April 2024, the Biden administration took steps toward limiting the rent increase for various affordable housing units. This change will cap rent increase at 10%.
Some tenant advocates say the new rule will help many renters across the country afford and stay in their homes. This new rule can be especially helpful to families, seniors, and single-parent homes. Other housing experts say that capping rent increases will do more harm than good to the housing affordability crisis.
Critics point out that rental control hasn’t always worked. It distorts marketing prices and eventually lowers rental quality. According to the National Apartment Association, rent control can have unintended consequences, such as pressing home providers to sell, reducing property taxes, and reducing incentives to build new housing projects.
Let’s dive into what the rent cap might mean for you and the housing marketing in general.
Details on the new rent cap
The first thing to know is that the cap is geared toward homes that receive funding from the Low-Income Housing Tax Credit (LIHTC). Even though this doesn’t apply to everyone, the National Low-Income Housing Coalition estimates that 2.6 million rental homes across the U.S. follow LIHTC rent and income restrictions.
Your home may be included in their category. To know for sure, take the following steps:
Check your lease for the words “tax credit” or “ LIHTC.”
Ask your State Housing Agency
Visit your local recorder’s office for documentation
This new protection went into effect on April 1, 2024. Whether this rental cap applies to you or not, having an affordable place to live can help you live a healthy financial life. We’re here to help you do just that. Here are some steps you can take to find an affordable apartment.
Finding an affordable apartment based on your income
Not spending most of your paycheck to keep a roof over your head comes down to understanding what you can afford but it’s also impacted by where you live. Here are some key tips:
1. Know your numbers
A standard guideline is to spend no more than 30% of your monthly income on housing. However, this is not always possible, if you live in an expensive city where incomes don’t quite match up.
So take a look at your income and calculate what you can afford to pay monthly for a rental and consider additional costs. Most apartments will require you to pay for utilities and internet.
Also, consider if you’ll have to pay for a parking spot, extra furniture, etc. With the total cost of expenses and rent in mind, you can review or create a budget from those numbers.
Coming up short? Explore ways to increase your income, e..g asking for a raise at work, freelancing on the side, or finding a higher-paying job.
2. Find a roommate
Having another person to split the cost of rent and utilities with can lessen your financial burden. If you’re considering this option, make sure that you and your potential roommate are a good fit for one another.
3. Consider the location
Look for neighborhoods that are slightly outside the city center or in up-and-coming areas where rents may be more affordable. This might mean a further commute to work or the city center but you could save a lot of money.
4. Negotiate your rent before you sign a lease
If you have good credit or are able to sign a longer lease period, this is leverage you can use to negotiate your rent. Landlords may be willing to lower the rent or offer other concessions.
5. Downsize
Consider downsizing your living space to make rent more affordable e.g to a to a smaller apartment or house.
6. Explore government programs
Explore government programs that provide rental assistance or affordable housing options. Some of these programs offer subsidized housing, housing vouchers and more.
7. Explore alternative housing
Housing options such as house sitting, subletting, or short-term rentals can temporarily reduce your housing costs while you save up for a more permanent solution.
Best websites to find an affordable apartment
Sometimes, finding a great and affordable apartment comes down to knowing where to look. Here are some of the best websites to use for your apartment search.
Facebook Marketplace: You’ve probably seen people selling electronics and old furniture on this site. However, it’s also a great place to find apartments because there are many listings for places to rent and people advertising for roommates.
Walkscore: This site helps you find affordable apartments where you can easily walk or bike to stores and other areas.
Zillow: While this site is known for advertising homes for sale, it also has excellent listings of cheap apartments.
Apartments.com: One of the most popular sites for finding an apartment because of its hundreds of listings.
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Whether you’re looking for a new apartment or trying to better afford the apartment you’re already in, one financial tool will help you regardless of your situation. This tool is a budget. So check out one of our free courses to create the perfect budget for you.
🥰 Team CGF’s Amazon Favs
Looking to spruce up your apartment on a budget? Here are some apartment essentials everyone could use!
1. Cartman Tool Set
Whether you want to hang up new art on the wall or need to tighten the screws on a squeaky door, this toolbox has all your basic tools for most small repairs. These tools are chrome-plated to resist corrosion and have been heat-treated. Its lightweight organizing case makes it easy to store and keep on hand whenever you need it.
2. Pougny 2-Piece Under Sink Organizer
Is your under-the-sink space a bit of a mess? It doesn’t have to be with this under-sink organizer. This easy-to-install device has two layers of storage, sliding drawers and easily fits under kitchen or bathroom sinks. Having some order in your space can definitely make life easier.
3. Eudele Adhesive Shower Caddy
Organize all your shower essentials with this adhesive shower caddy. It has space for body wash, shampoo and conditioner, sponges, and more. The best part is it’s easy to install, and is rust-proof. Because it doesn’t require drilling into the wall, you won’t have to worry about breaking the rules of your rental agreement.