This week in incredibly unsurprising news: yet another study confirms that you cannot afford to live in the majority of Miami. The data scientists over at RentHop found that the income needed to rent in Miami-Dade County, which is $43,786 according to census data, is well above the annual median for most American households.
RentHop calculated how much money you’d need to make in order to rent in specific areas of our city by using something called the “40x rule.” The formula goes like this: your income must be at least 40 times your monthly rent. It’s a well known real estate equation used by both landlords and renters alike.
So, with calculators in hand, RentHop found the most expensive and affordable places to live in Miami.
The most expensive territory is, of course, in Miami Beach. Fisher Island wins first place in the ridiculous rent category. Median rent for a two-bedroom on the island is $12,000 a month, which means your household must make an average of $480,000 a year to live comfortably. Fisher Island is followed by South Pointe, where monthly rent for a two-bedroom hovers around $5,000. La Gorce takes third place. You should be making at least $188,000 annually for a two-bedroom there.
There is a flip side though. RentHop discovered that the most affordable areas of Miami are Opa-Locka, Model City and South Miami Heights. Broward County also boasts cheaper rent. And though it wasn’t mentioned specifically in the study, there is that classic alternative more and more young Miamians are moving toward these days: living with the parents.
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