What is the "Rent Burden" concept?

The "Rent Burden" concept refers specifically to the scenario in which a tenant allocates more than 30% of their income toward housing costs. This measure is often used in various discussions about housing affordability and economic stability. Spending more than this threshold is generally seen as a sign of financial strain, indicating that the tenant may struggle to meet other essential needs such as food, healthcare, and transportation.

Understanding this concept is crucial, especially for property management professionals, as it helps to gauge the affordability of rental properties in a given market and can inform decisions about pricing, tenant support, and community engagement. Recognizing when tenants may be rent-burdened allows property managers to understand the financial limitations faced by their tenants and may guide them in implementing supportive practices or engaging with policy discussions aimed at increasing housing affordability.