[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.