How much should I pay in rent?

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When it comes to renting your first apartment or house, there are a lot of questions you might have in the process: What is a broker's fee? How do I get the security deposit back? How much should I spend on rent, movers and furniture?

Finding the answer to all of these questions may seem daunting. However, if you go into the process of moving with an idea of how much of your income you can spend on rent and other home-related costs — like a security deposit, broker's fee, renter's insurance and new furniture — you'll be better prepared to tackle this life milestone.

Historically, experts recommended spending no more than 30% of your pre-tax income on rent and utilities. But with rising costs, is that relevant for most people anymore?

The 30% rule should be taken as a rough guide, not a hard-and-fast rule, according to John Madison, a CPA at Dayspring Financial Ministry in Oilville, Virginia.

"It's fine for estimating, but I think it's also important for folks to dig down deep into their own personal situation," Madison told CNBC Select.

If you're living in a major metropolitan area like Los Angeles, San Francisco or New York City, 30% might not be reasonable. The average rent for a one-bedroom apartment in San Francisco is $3,429 per month, according to Apartments.com, about 109% higher than the national average rent, $1,644 per month.

Another common formula for determining your housing budget is the 50/30/20 rule. It suggests allocating 50% of your paycheck toward needs, 30% toward wants and 20% toward savings and investments.

If you earn $5,000 per month after taxes, you'd divide your paycheck like this:

• $2,500 for rent, groceries, car payments and other essential needs
• $1,500 for shopping, dining out, entertainment and other "wants".
• $1,000 for savings.

You'll have to deduct other needs to determine how much is left for you to spend on rent.

Ultimately, how much you can spend on rent depends on your income, the size of your household and your other expenses and outstanding debts.

A single person making $50,000 a year with no dependents can likely spend 50% of their income on rent and have enough left to cover other essentials. But a single parent with two children making the same amount will have to spend less.

The best way to determine your own rent ceiling is to make a budget.

Step 1. Track your monthly expenses. Take a realistic look at how much you're spending every month on groceries, gas, car insurance, dining out, subscription services, shopping, entertainment and loans.

Step 2:  Make sure you incorporate savings goals. Even if you can't make the 50/30/20 goal, you should still set aside money for an emergency fund or long-term savings goal.

Step 3: Research your local market. Hop onto real estate websites to see what going rates are for the area and rental type you're looking for. This will help set expectations and give you a chance to recalibrate other budget items to make room for things you care about, such as location, rental amenities and size.

Step 4: Build a rent range instead of a single number. Identifying the highest rent you can afford and the lowest you can get with the features you're looking for will help broaden your search.

Step 5: Stress test your budget and save for your security deposit. Stay in your current housing situation but put your ideal rental amount away in a high yield savings account. You can see how it feels and how rent will affect other areas of your budget. At the end of a few months, you'll have a security deposit (and maybe first and last month's rent) to show for it

When I moved to New York earlier this summer, I was surprised to learn how many lesser-known costs were associated with renting and moving. There was a broker's fee and a security deposit, plus I had to purchase new furniture. These things can add up, so it's important to know what they are and how much everything will cost.

Depending on what city you live in, you might have to pay a broker's fee. Unfortunately, you won't get the broker's fee back. There aren't broker's fees for renting in most areas, but you'll typically find them in New York City, and occasionally in other cities like Boston.

Broker's fees are kind of like a finder's fee. Real estate brokers collect fees for listing apartments and arranging tours for landlords. In New York, these fees are typically 10 to 15% of your annual lease amount or the cost of one month of rent. It's important to incorporate these fees into your budget when calculating the cost of renting in New York.

For example, a person with a before-tax income of $60,000 who wants to abide by the 30% rule, will not want to spend more than $1,500 on rent each month. Yet when you add on the cost of a 10% broker's fee for a $1,500 per month rental, you'll have to pay an additional $1,800 at the beginning of your lease.

Another common upfront cost when renting is the security deposit. The security deposit is collected by the landlord or property manager and acts as collateral in the event that you damage the house or apartment that you're renting. The security deposit is usually equal to one month's rent and is returned to the tenant at the end of the lease.

Considering the previous example, a tenant would have to put a total of $4,800 down upon move in: $1,500 for the first month's rent, $1,800 for the broker fee and $1,500 for the security deposit, for a rental that costs $1,500 a month.

In order to save up for a down payment on a rental, you might consider placing your money in a high-yield savings account, some of which offer a rate of return that is 10 times the amount offered by traditional savings accounts. High-yield savings accounts allow people to withdraw money from their account up to six times a month, which makes it a good choice for people who want higher returns but who still need access to cash.

Lastly, you'll have to cough up money to pay for moving expenses and new furniture. When I moved, I racked up charges for a new mattress, bed frame, desk and chair, among many other items I purchased on Amazon. If you're unable to pay for your new furniture upfront, a 0% APR credit card could be a useful tool to finance your purchases.

A 0% APR card gives new cardholders an introductory period, typically between 12 and 20 months, where they won't have to pay interest on new purchases and/or balance transfers. A 0% APR credit card is a great way to finance new purchases but you'll need to have a good or fair credit score in order to qualify for one. Make sure you know when your introductory period ends so you can avoid incurring any interest on your purchases. Cardholders will, however, still be required to pay the minimum amount on your bill each month.

The Chase Freedom Unlimited® (see rates and fees) is one card that has a generous 0% APR introductory period on purchases. New cardholders can take advantage of 0% intro APR for the first 15 months on new purchases and balance transfers (then a 18.24% - 27.74% variable APR). There's a intro balance transfer fee of $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days. After that it's either $5 or 5% of the amount of each transfer, whichever is greater. It's a good option for people who want to receive simple cash-back rewards on their new furniture purchases.

Another intro APR card you might opt for is the Blue Cash Everyday® Card from American Express. You can earn 3% *cash back at U.S. gas stations, (on up to $6,000 in eligible purchases per year, then 1%) as well as a grocery benefit where you'll get 3% *cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases, then 1% thereafter and 3% *cash back on U.S. online retail purchases on up to $6,000 per year in eligible purchases (then 1%)

*Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.

Renting an apartment for the first time can be a costly endeavor. You'll have to know how much of your annual income you can spend on rent, how much your upfront costs will be to secure housing and how you'll pay for new furniture.

There are no hard and fast rules about how much you should be spending on rent, but know that the more money you budget for housing, the less you'll have available for other living expenses, investing and saving.

Purchasing furniture is another costly expense, but using a 0% APR credit card is a great option for people who need more time to pay off their balance.

For rates and fees for the Blue Cash Everyday® Card from American Express, click here