By Megan Wells, Police1 Contributor
Do you know how much of your paycheck you should commit to rent or mortgage in order to leave room for ancillary expenses and savings? Everyone’s situation is different, but financial experts have estimated a number for this question — ideally, 25 percent (or less) of your gross paycheck should be committed to housing. What happens when your profession is notorious for modest paychecks, and the city you’re protecting is notorious for high housing costs? Here are five instances where the 25 percent rule isn’t realistic.
1. San Francisco
- Starting salary: $81,380
- Top step officer: $113,282
- Median sales price of a home: $1,100,000
- Median rent: $4,600
A rookie would need to spend 67.83 percent of his or her gross income on rent. A top step officer would need to spend 48.73 percent of his or her gross income on rent in San Francisco.
2. New York
- Starting salary: $45,674
- Top step officer: $91,998
- Median sales price of a home: $1,275,125
- Median rent: $4,500
A rookie officer would not be able to independently pay for rent in New York at this rate. A top step officer would need to spend 58.70 percent of his or her gross income on rent in The Big Apple.
3. Washington, DC
- Starting salary: $57,094
- Top step officer: $92,914
- Median sales price of a home: $539,900
- Median rent: $2,999
A rookie would need to spend 63.03 percent of his or her gross income on rent. A top step officer would need to spend 38.73 percent of his or her gross income on rent in the nation’s capital.
4. Portland, Maine
- Starting salary: $40,417.52
- Top step officer: $53,447.68
- Median sales price of a home: $361,569
- Median rent: $1,700
A rookie would need to spend 50.47 percent of his or her gross income on rent. A top step officer would need to spend 38.16 percent of his or her gross income on rent in this New England city.
5. Boston
- Starting salary: The Bureau of Labor Statistics offers the most accurate salary information for Boston wages, which averages all police and sheriff patrol officers salaries at $61,180.
- Median sales price of a home: $329,900
- Median rent: $2,945
An average officer would need to spend 57.76 percent of his or her gross income on rent in Beantown.
Notes on the methodology:
- The median rent considers apartments sized from a studio to a four-bedroom unit.
- To find out more about your personal situation and what a realistic mortgage or rent payment would be, we recommend looking at NerdWallet’s “How much house can I afford” calculator and Zillow’s rent affordability calculator.