Let’s say you’re on the hunt for a new Chicago apartment and decide to jump into the search without covering finances first. Then, you find your ideal floorplan in the dream location, only to find out you were denied in a rental application because your income didn’t qualify.
If you’re wondering, “How much rent can I afford in Chicago?” here’s how to determine the budget for your next apartment based on current market rates, income, and living expenses.
Calculate Your Rent-to-Income Ratio
Your income is the main factor that will determine the maximum rent you can afford. The recommended rent-to-income ratio is 30%, but that can be a starting point depending on your financial situation and property requirements. For example, if your gross monthly income is $5,000, you typically can afford $1,500 in rent based on the 30% ratio.
If you find that your rent-to-income ratio isn’t enough for the area you want to live in, haven’t built enough credit, or have a credit score below 650, you may be able to apply for a Chicago apartment with a cosigner if allowed.
Adding a cosigner to your lease won’t hurt your credit report and can help you get approved for rental applications while building credit over time for future apartments–so you won’t need a cosigner in the future. It provides the community or landlord with the added assurance that if you miss a rental payment, they will be responsible for covering that for you.
Understand the Average Cost of Living in Chicago
As a major U.S. metro, the 2025 cost of living in Chicago is slightly higher than the national average, with rent ranging from $1,567 to $2,933 per month. You must also consider household expenses and anything else you need to live comfortably.
Use the 50-30-20 rule to calculate the estimated budget you need for living expenses based on your after-tax income:
•50%: The amount you should set aside for necessities, such as groceries, car payments, healthcare insurance, and apartment utilities.
•30%: The amount you should set aside for spending, such as shopping, take-out food, and entertainment.
•20%: The amount you should set aside for financial security, such as 401(k), savings, student loans, and credit card payments.
Check the Rental Rates for Chicago Neighborhoods
It’s helpful to search for the average cost of apartments throughout Chicago to get an idea of what you can afford with your current income.
Some popular places to live in Chicago and their average rental rates are:
•Hyde Park: Located on the South Side, with college town living, with a rental median of around $1,400 per month.
•Lincoln Park: Located on the North Side, offering lakeside and greenery living, with a rental median of around $2,406.
•West Loop: Located in the heart of downtown with upscale living, ranging from $2,200 to $2,800.
Keep in mind that these will vary by current market rates, neighborhood, and property, as they may offer luxury amenities and in-demand locations that can increase rent.
Chicago Apartment Rent FAQs:
Is Chicago Expensive to Live In?
Certain neighborhoods in Chicago can be expensive to live in, such as River North and Fulton Market, due to their sought-after locations. However, there are plenty of areas within Chicago that are more affordable to rent.
What Are the Cheapest Places in Chicago to Live?
The cheapest places in Chicago to live for renters include:
•Edgewater: Average median of $1,289 in rent.
•Hyde Park: Average median of $1,400 in rent.
•Lakeview: Average median of $1,744 in rent.
What is the Cost of Living in Chicago?
The 2025 average cost of living in Chicago is $1,287.30 in monthly expenses, excluding rent.
What is the Average Income in Chicago?
The 2025 average annual income in Chicago is $65,250.
Find Your Perfect Chicago Apartment Without Breaking the Bank
Are you ready to find your dream Windy City apartment? Our dedicated team of leasing professionals has been helping renters find places to live in the Chicagoland area since 1996.
With more than 30 unique city and suburban communities to choose from, spanning from studio to three-bedroom floorplans, we have what you need to feel right at home.
Browse our Chicago listings or contact us at info@chicagorentals.com for help finding an apartment within your budget today!
