[grecy]

> 2014, the NLIHC pegged the average two-bedroom rent in Santa Clara County at $1,649

$1,649 / 4 = $413/wk

$413 / 40 = $10.30/hr of your income going to rent.

So they're saying you need to make $31.71, which means they're saying you spend $20/hr of your income on things other than rent. Absurd does not cover it.

Obviously I'm not accounting for tax, but I'm also not counting that a two bedroom apartment means two people paying rent. If you only have one person, then rent a one bedroom apartment. It's 2014, not 1964.

[gamblor956]

Tax is pretty important--even at the 15% bracket it's still $3000 a year, not including FICA withholding or state (or for the Bay Area, local) taxes which are easily another $1-2000 more. For someone making $100k a year, that's not much. For someone making $20,000 a year (rounded up) it's a big bite and it definitely changes the affordability calculation.

[encoderer]

"For someone making $100k a year, that's not much. For someone making $20,000 a year (rounded up) it's a big bite and it definitely changes the affordability calculation."

Taxes don't work like that of course. The $100k a year person is paying a higher percentage than the low income person. That $20k earner you mention will probably have a very low nominal tax rate after calculating down to their AGI.

[grecy]

So let's say tax is 35% -

$413 / 40 = $10.30/hr + 35% = $14/hr of your pre-tax income going to rent.

That's still an absurd amount of money being spent elsewhere if you're earning $31/hr (pre-tax) or approx $20/hr post 35% tax.

[x0x0]

tax knocks $31.71/hour to roughly $23/hour in CA, and the majority of people we're discussing don't make nearly $70k/year (31.715240 = 65,956)

if you make, say, $20/hour you'll struggle to afford $1k/mo rent plus a reliable car.

20 * 52 * 40 = $41,600/year gross

that gets you 2,856.56 / month (no ca tax yet) [1]

2,856.56 * 12 = $34,278/year

you pay 1,360.28 + 8% of anything over $39,384 [2], so

1,360.28 + 0.08 * (41600 - 39384) = 1537

so (34278 - 1537)/12 = $2,728/mo

You really oughtn't pay more than 1/3 of your income for housing, but since that gets you nothing around here, not even in epa, you're looking at maybe being able to afford $1100/mo in rent. $2200 gets you a pretty basic 2 bed/2 bath in a safe neighborhood in the peninsula (source: I manage an apartment building). Knock off $450 for a dirt cheap car (car + insurance + a bit of savings for maintenance + gas).

So $2728 less rent less transportation and you're down to roughly $1178. And our hypothetical employee hasn't eaten, saved money, gone on a date, paid a medical bill, purchased clothes or glasses, or even gotten internet access or a phone.

So yeah, pretty much just scraping by. I'd be pretty impressed if someone had $500 left after the above list.

[1] http://www.calculator.net/take-home-pay-calculator.html?cann...

[2] https://www.ftb.ca.gov/forms/2013_california_tax_rates_and_e...