Cities where Americans have the most cash left over after paying their mortgages

Housing oftentimes takes a large percentage out of Americans’ income – across every demographic.

It was ranked as the top expense among individuals of all generations, from Gen Z to Baby Boomers, according to recent findings from GOBankingRates, which analyzed data from the Bureau of Labor Statistics.

However, in some cities, Americans have a little more discretionary income left over after accounting for rent or a mortgage payments.

The general guideline is that people should not allocate more than 30 percent of their earnings toward housing expenses, according to real estate site Zillow.

Zillow used data from the fourth quarter of 2018 to examine what the average individual, earning median-income and paying typical housing expenses, has left over in the country’s largest metropolitan areas.

Here’s the cities where people have the most income left after paying their mortgage:

Washington, D.C.

People earning median-income and paying the average mortgage in the D.C. area are expected to have about $83,642 left over per year.

The average resident allocates about 19.3 percent of his or her income toward homeownership. Because salaries in the area tend to be higher, residents have more discretionary income to move around.

For renters, left over totals are closer to $77,738.

Boston, Massachusetts

People who owe a mortgage in Boston, Massachusetts tend to put about 25.4 percent of their income toward paying it. That being said, Bean Town residents have $67,165 left over after those expenses are paid.

Renters allocate an even larger share of their income toward housing – at 31.8 percent. Still, Boston renters are typically left with $61,467.

Minneapolis-St. Paul, Minnesota

Mortgage payments eat up a relatively small portion of earnings for Minneapolis residents – at 16.5 percent. That generally leaves people with annual leftovers of $66,794.

For renters, housing expenses account for more than 25 percent of income, with remaining balances averaging out around $59,810.

On the flipside, mortgage-payers have the least amount of money leftover in these cities:

Los Angeles, California

Homeowners in Los Angeles pay 43.7 percent to cover mortgage expenses, with about $41,426 left over.

In this California city, renters spend about 45.7 percent of their income on housing– and have an average of $39,926 left over each year.

Miami, Florida

In another market where real estate prices tend to be high – Miami – both renters and homeowners allocate a significant share of their incomes toward housing expenses.

Mortgages account for nearly one-quarter of the average person’s income – leaving them with about $42,533 left over.

For renters, the situation is far worse. Rent costs eat up more than 40 percent of earnings. When those expenses are covered, the average resident in this Florida hotspot only has about $33,783 remaining to spend elsewhere.

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Tampa, Florida

Homeowners in Tampa spend about 19.5 percent of their income on their mortgages – however, the average resident is typically only left with $43,549 once those expenses are paid.

A renter in the city would allocate a larger share of her income – 31.4 percent on average – toward housing expenses. These residents only have about $37,072 remaining for the year after paying rent.