If they are roughly equivalent, how can one be 50% of income and the other 38% ?
The problem is you compared the pre-tax numbers when computing the percentages. [/quote]
I dont think that is the problem.
Owners pay 4272 in housing related expenses and have a NET income of 8405.
Renters pay 2700 in housing related expenses and have a NET income of 7165.
The difference between the two is the markedley better tax writeoff of $1240/month recieved by the owners. Remember, they make the same PRE tax income.
So 2700/7165= 0.376
And 4272/8405=0.508
Hence the renters are paying roughly 38% of their NET income, while the Owners are paying 51% of theirs.
