Redfin says that it's enough for many homeowners in affordable metros
Many renters and homeowners may use their $1,200 stimulus check to cover housing costs.
The $2 trillion stimulus bill, known as the CARES Act, prevents foreclosures and evictions for homeowners and renters, as well as enables borrowers to put mortgage payments on hold for up to a year.
Redfin's latest analysis found that Indianapolis is the top metro where homeowners can stretch the $1,200 one-time payment to support their needs. Around 66% of homeowners in Indianapolis, where the median mortgage payment is $1,254, could pay most or all of their monthly mortgage and utilities with the check.
"In Indianapolis, the overwhelming feeling is that when our local economy does come back, it will come back with a vengeance," said local Redfin market manager Jake Johnson. "With the cost of living in Indiana already so low, many residents may use the government stimulus to be good neighbors by supporting local businesses, though workers in the hardest-hit industries, such as hospitality, may use it to pay their mortgages."
Meanwhile, San Jose, Calif., where the median mortgage payment is $3,371, had the lowest share of homeowners that could cover their monthly costs with a $1,200 check (6%).
While there's a considerable chance that the money will end up in their landlords and lenders' pockets, a recent survey showed that more than 28% of Americans already plan to use the check to pay their rent and mortgages.
As far as renters are concerned, the stimulus check could go even farther for those in Buffalo, N.Y., where the median monthly rent is $809. Around 94% of renters there could cover a month's rent with the check. Cleveland and St. Loius, both at 93%, rounded out the top three.
The metros with the lowest share of people that could pay their rent with $1,200 were San Jose (22%), San Francisco (32%), and Washington, D.C. (40%).
