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How To Afford an Apartment in College

An off-campus apartment is one of the largest living expenses many college students encounter. We'll help you think through all the related costs and give you tips to keep those costs manageable.

Emily Rogers (She, Her, Hers)
Contributor
Published Mar 14, 2025 in: Budgeting

Read time: 10 minutes

For the 2023-2024 school year, the average annual cost of off-campus student housing and food is $12,582 nationally, according to the National Center for Education Statistics.

Students choose to live off campus for a variety of reasons. Maybe they want a little more independence or they're dissatisfied (PDF) with the quality of dorm options. Some research suggests they might be competing for space as universities struggle to keep up with enrollment growth. About 62% of students live off campus at four-year or two-year schools, according to the National Multifamily Housing Council.

Whatever the reason, moving into your first apartment off campus comes with new financial considerations. To make apartment life more affordable and enjoyable, review these tips before you decide whether an apartment makes sense for your situation and how you can make ends meet.

Big Picture

Renting an apartment while in college comes with many unexpected one-time and ongoing costs and requirements.
Your financial aid package may influence whether you can afford an off-campus apartment.
Review your budget, then apply personal finance tips including comparison shopping, reducing costs and seeking additional funds and income.

Apartment Costs To Consider as a College Student

Research shows that students living off campus pay about $500 more per month than those on campus for food and housing, according to the National Center for Education Statistics. But that's because you'll have more expenses to budget for.

Most colleges package tuition, housing, food and fees together, making all-in costs easier to assess. Here are common costs that come with renting off campus.

One-Time Up-Front Costs

Up-front costs can be shocking. Typically, landlords require the following:

An application fee.
Security deposit for any apartment damage you may cause. This deposit may be fully or partially refundable.
Cleaning deposit to cover costs of cleaning after you move out.
First month's rent.
Last month's rent.

Landlords may also require you to meet income requirements, have a past rental history and have good credit. You may need to apply with roommates or a parent who can cosign. If you're planning ahead, you can work on building your credit with a savings-secured loan or secured credit card, but building credit from scratch is a slow process that typically takes years.

Most apartments come unfurnished, so you'll have to spend money on buying furniture, kitchen supplies and even linens. You may find good deals on Craigslist, Facebook Marketplace or from other college students moving out. You can also ask family members if you can take any furniture off their hands that they don't want anymore. But furnishing an apartment isn't cheap.

Ongoing Costs

Every month, you may need to cover the cost of utilities at a flat rate or a changing amount due to usage. These could include:

Electricity or gas
Water and sewer
Garbage
Wi-Fi and cable or streaming services

Costs will also vary depending on your rental. Heating a modern apartment may cost less than an older apartment with poor insulation, for example.

Most apartments also require renter's insurance to cover the costs of your belongings and the apartment's interior if damaged.

You'll also have costs for maintaining your place, such as cleaning supplies.

Optional Costs and Fees

While a pet or reserved parking spot fee might make sense (if you plan to have either), read the fine print where other "junk fees" are concerned. It's best to avoid these rent-boosting bills unless you can fit it into your budget. Rental fees may include:

Very high late-payment fees
Processing or administrative fees
Convenience fees
Notice fees
Fees to report information to credit bureaus

How Off-Campus Living May Affect Financial Aid

Estimating costs can be tricky. According to the U.S. Government Accountability Office, most colleges don't include potential costs of off-campus living in financial aid offers, only on-campus options, so moving off campus can impact your financial aid, budget or both.

Your aid package uses your school's cost of attendance estimate. This relies on the academic year, which is typically nine months. Depending on your school, you may see reduced financial aid or a funding gap if the cost of attendance:

Doesn't differentiate between housing types.
Uses on-campus housing to estimate the financial assistance or underestimates rental market rates.
Underestimates year-long off-campus costs due to the nine-month academic year.

For example, if the university estimates lower costs for that housing than on-campus options, you could see a reduced financial aid package. You'll have to cover the gap if the school's estimate doesn't match the local rental market. You can't request an increase in your aid package if you run out of money or stay for 12 months instead of nine months.

You might also find fewer options with rental agreements for less than a year.

10 Tips To Afford an Apartment in College

Review the following tips to lighten the financial load and give your budget a break.

1. Create a Budget, Then Shop Around

Increasingly, students find themselves "rent burdened." Another 2024 national survey of two- and four-year college and university students found that 48% experience housing insecurity.

Use this budget calculator to outline your monthly income and other expenses. Personal finance experts recommend spending no more than 30% to 45% of your monthly income — whether from a job, loan, grant, scholarship, savings or parental support — on housing.

As a trial run, adjust your spending to prioritize your needs before you have to pay monthly rent. This will help you separate your needs from your wants, allowing you to save more money and still have fun.

After determining how much you can spend, comparison shop for an apartment. Remember to compare each option's move-in costs, utilities, monthly fees and transportation costs.

2. Share the Cost With College Student Roommates

One way to afford an off-campus apartment in college is to split costs with roommates.

Splitting the deposit, rent, utilities, Wi-Fi and other costs with even one roommate may help to reduce apartment expenses.

Having more than one person contribute to rent may also help you qualify for an apartment despite any one roommate's limited income. You may also need a cosigner to get an apartment if you don't yet have a credit history.

3. Find Neighborhoods in Your Price Range

According to research, student rental housing prices are highest a half mile to a mile from campus. Prices didn't increase as much within a half mile or beyond a mile away.

Research also found that some students have to commute long distances to find affordable housing, leading to higher fuel costs.

Finding the right neighborhood in your price range can take some time. Check your college or university's housing center and newspapers for off-campus housing options and look for rent signs. Visit different neighborhoods at different times of the day.

Start shopping as soon as possible. Affordable apartments near your school will likely fill up fast.

4. Sublet an Apartment

Subletting an apartment can be a way to save money. In this case, the person who initially rented the apartment rents it to someone else for a specific period.

Whether they sublet for travel, family, work or other reasons, the original renter remains responsible for the lease agreement and any damages that may occur.

Subletting doesn't require a hefty security deposit or fees. However, ensure the subletting agreement is approved by the landlord and consider having it reviewed by an attorney to ensure it's legal.

5. Look for Buildings With Amenities Included

When searching for off-campus apartments, amenities may help you save money. For example, choosing an apartment with in-unit laundry might save money versus paying to wash clothes at a laundromat.

According to National Multifamily Housing Council research, the most important off-campus amenities students seek are those making daily life more efficient or pleasant, including:

Laundry
Parking
Wi-Fi
Utilities
Dishwasher
Gym
Pets allowed

As always, all expenses add up, so ensure the property management company or landlord doesn't charge extra fees for amenities you don't use.

6. Keep Transportation Costs Low

Getting back and forth to school doesn't have to break the bank. Consider public transportation like city-wide bus routes, free shuttles to off-campus facilities, or other public transit locations. Show your college ID to see if you're eligible for student discounts.
Consider using a carpool or bike share program to get to work or school. Services like Uber or Lyft typically offer student discounts and usually require a mobile app to start the process.

To make the trip easier, consider carpooling with friends or roommates who are in the same class or have similar work schedules.

7. Use Federal and Private Student Loans

If the school's aid package doesn't cover your apartment, always talk with your financial aid office. They may be able to help adjust your aid if possible. They also may be able to help you increase the amount of any existing federal or private student loans — or add new loans — to ease the immediate financial burden.

Research your loan options, plan to borrow only what you need and what you can afford to repay, and remember that some loan options may require a good credit history or cosigner.

Learn about interest rates, as federal loans may have lower rates and other benefits that you may not get with a private student loan. You may also be able to deduct student loan interest, even if you're using the loan to pay for housing.

8. Use your 529 Account, Scholarships or Grants

If you're at least a part-time student, you can withdraw funds from your 529 college savings plan (PDF) for an apartment. The fine print: The cost can't exceed your school's cost of attendance estimate for room and board.

Typically, this is the amount required to live in a dorm. You can even use funds to buy food, up to the cost of the university's meal plan. Contact your university for qualified room and board costs and consult with a tax professional to understand the rules.

In addition, some scholarships and grants might give you money to pay housing costs and other living expenses.

9. Find a Part-Time Job

By working, you can earn extra cash to help with bills like rent, utilities and groceries.

Talk to roommates, fellow students or professors to learn about any part-time opportunities on or near campus. Find a job that's flexible with your schedule and a manager who is understanding.

Typical flexible jobs may include waiting tables, pet sitting, serving coffee, working in retail or getting a paid internship. Also consider on-campus jobs, like being a teaching assistant, working in the dining hall (which might include free or discounted meals) or working in a residence hall (which might include discounted housing costs).

A part-time job can provide some much-needed extra cash for housing and other expenses.

10. Consider Innovative Alternatives

New initiatives are being developed nationwide to deal with the affordable housing crunch, according to Housing Matters, a publication of the Urban Institute. These include:

Rental subsidies and housing assistance for students at risk of homelessness.
Federal vouchers and rental and utility assistance for low-income students.
Housing-share programs where students are matched with community residents in a private home.
Housing co-ops where you perform work in exchange for decreased rent.
Homestays for international students.

Research options that may be available in your area.

Summary: Your Off-Campus Apartment

To afford an apartment in college, research how it affects your financial aid and loans. Then, look at one-time and monthly expenses to see how they compare to your income.

Finally, maintain a monthly budget and shop around for a rental, comparing all costs and looking for ways to save. It's a great first step on a successful personal finance journey.