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HEM (Household Expenditure Measure)
The HEM is a benchmark used by some banks to estimate people’s living expenses when considering home loan applications. It classifies over 600 items into three categories: absolute basics, discretionary basics, and non-basics. HEM measures net-of-housing costs and takes into account factors such as income, location, family size, and lifestyle preferences.
Data Entry:
The table below displays that a single person with no dependents and a net annual income ranging from $50,000 to $59,999 (since the next income tier starts at $60,000, as shown in the table) will have a HEM of $1,387 per month.
