With rent consuming up to 34% of the median income in some cities, the personal-finance company WalletHub recently released its report on the Cities With the Most Affordable Rent, highlighting places where residents can experience the greatest financial relief.
To identify the cities with the most affordable rent, WalletHub examined the median annual gross rent across more than 180 cities and compared it with the median household income in each location.
| Lowest % of Income Spent | Highest % of Income Spent |
| 1. Bismarck, ND (15.29%) 2. Sioux Falls, SD (16.35%) 3. Cedar Rapids, IA (16.48%) 4. Charleston, WV (16.56%) 5. Fargo, ND (16.94%) 6. Cheyenne, WY (17.02%) 7. Juneau, AK (17.04%) 8. Casper, WY (17.24%) 9. Anchorage, AK (17.30%) 10. Overland Park, KS (17.34%) | 173. Birmingham, AL (28.85%) 174. Pembroke Pines, FL (28.85%) 175. Orlando, FL (28.98%) 176. Glendale, CA (29.62%) 177. Bridgeport, CT (29.65%) 178. Jackson, MS (30.09%) 179. New Haven, CT (31.41%) 180. Newark, NJ (32.09%) 181. Detroit, MI (32.27%) 182. Miami, FL (33.77%) |
To view the full report and your city’s rank, please visit:
https://wallethub.com/edu/
“In the most affordable cities for renters, the median cost of rent is as low as 15% of the median income, compared to nearly 34% in the most expensive cities. This gives people in the least expensive cities a clear financial advantage; the money they save on rent could go toward their emergency fund or savings for future home ownership.”
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“People in Bismarck, ND, have the most affordable rent as a percentage of their income. The median annual gross rent in the city is around 15.3% of the median annual income. For comparison, Miami residents spend more than double that, or 33.8% of their income.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What tips do you have for finding affordable housing for renters?
“Finding affordable housing today requires a more strategic approach than many renters expect. Expanding a search radius by even a few miles can significantly lower rent, especially in metro areas where pricing shifts neighborhood by neighborhood. Timing matters as well, as rental data from Bloomberg shows that prices often soften during slower leasing periods. Many renters rely only on major platforms, yet smaller landlords and local networks often offer better value. With nearly half of renters now considered cost-burdened, the most successful renters tend to be those who are flexible, informed, and willing to move quickly when the right opportunity arises.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
What are the most common renting mistakes and how can they be avoided?
“The most common mistake renters make is focusing on the advertised rent instead of the total cost. Once utilities, parking, deposits, and fees are included, monthly expenses can rise substantially, a trend tracked by the U.S. Bureau of Labor Statistics as housing costs continue to climb. Another issue is signing leases without fully understanding renewal terms or penalties. Location is often underestimated, since longer commutes increase both financial cost and daily stress, and research… shows that commute time has a measurable impact on overall well-being. The most effective renters look beyond the price tag and evaluate the full cost of living in a location.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
What are the pros and cons of renting an apartment or a house?
“Renting an apartment typically offers convenience, lower upfront costs, and proximity to jobs and amenities, which explains why apartments remain the dominant rental option in many cities. Renting a house provides more space and privacy, which has become more desirable as remote work continues, but it usually comes with higher rent and greater responsibility. According to the U.S. Census Bureau, about one-third of US households are renters, and many are now balancing this exact tradeoff.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
What steps can policymakers take to increase rental affordability?
“Improving rental affordability ultimately comes down to increasing housing supply. The United States is currently short an estimated 3 to 4 million housing units, a gap reflected in data from the U.S. Census Bureau... When supply is constrained, rent growth accelerates, which is why policies that streamline permitting, reform zoning, and encourage development tend to have the greatest long- term impact. WalletHub rankings consistently show that cities with greater housing availability and lower cost burdens are more renter-friendly, reinforcing the idea that affordability improves when supply meaningfully expands.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
7 Tips for Saving Money on Rent
- Pick a smaller or less fancy apartment: The larger your living space is and the more amenities it has, the more it’s going to cost you in rent. Giving up some comforts now can help you save money and enjoy better living conditions in the future.
- Improve your budgeting skills: Learning how to budget properly is key for ensuring that you have enough money to afford your monthly rent in addition to your other expenses. In addition, if you’re interested in owning rather than renting someday, you should budget money each month toward an eventual down payment, after prioritizing your basic needs and paying down existing debt.
- Get a roommate: When you live with someone, you can split rent and utility costs with them. Just make sure you live with someone trustworthy who will always have their share of the rent on time.
- Look for units with included utilities: Utilities like electricity, water and oil/gas can add quite a bit to your monthly expenses. However, you may be able to save money by renting a place where utility costs are built into the rent, no matter how much you actually use.
- Shop around: Looking at several different places to rent before deciding on one can help you pick the one that’s most cost effective.
- Take care of your living space: If your rented apartment or house is clean and undamaged when you move out, you’ll be able to get your security deposit back in full.
- Get a rent-controlled unit: Some places have limits on how much landlords can charge for rent and on how much they can increase rent year-to-year. However, this is relatively rare, as only seven states currently have rent regulations in some cities.
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