Home prices in the United States have surged in recent years. According to data from Realtor.com, the typical price of a listed home in the U.S. surpassed $400,000 for the first time in the spring of 2022, and in the months since, median home prices have remained above that threshold. High list prices have also been compounded by rising mortgage rates in recent years. Since September 2022, the average interest rate on a 30-year fixed mortgage has been above 6%, a high not seen in well over a decade.
24/7 Wall St. Key Points:
- Home prices and mortgage rates have made homeownership prohibitively expensive for millions of Americans.
- As a result, renting has become the most prudent option, or the only option, for a growing share of the population — but in certain U.S. cities, renting is far more affordable than in others.
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These conditions have priced millions of Americans out of the housing market and are fueling an on-going housing affordability crisis. Partially as a result, many Americans have effectively been forced into the rental market, and many others have willingly chosen to rent until interest rates or home prices come down. (This is how Baby Boomers impacted the housing market for younger buyers.)
While renting has become a financial strategy, or a financial necessity, for a growing number of Americans, rental affordability is not equal across the country, and in some U.S. cities the market for renters is far more favorable than in others.
Using data from the U.S. Census Bureau’s 2023 American Community Survey, 24/7 Wall St. identified the most affordable city for renters in every state. Cities are ranked by the median annual rental payment as a percentage of median household income. All places — including cities, towns, villages, and unincorporated communities — with populations of at least 50,000 were considered. All data in this story are five-year average ACS estimates.
It is important to note that in three states — Alaska, Delaware, and Maine — there is only one community home to 50,000 people or more. As a result, the city listed in these places ranks on this list by default only. Additionally, because there are no cities in Vermont or West Virginia with populations of at least 50,000, these states were excluded from analysis.
Among the places on this list, the typical renter pays anywhere from 12.6% to 25.8% of their annual income on rent every year. In the vast majority of these places, renting is more affordable than it is across the state as a whole. (Here is a look at the benefits and downsides of investing in a duplex.)
Affordable renting is the product of two factors: income and rental prices. Partially as a result, rental rates in these places are not necessarily lower than average. Nationwide, the median gross monthly rent is $1,348, and in just over half of the cities on this list, the median monthly rent price exceeds that amount.
In many of these areas, higher rental costs are offset by higher incomes — as in most cities and towns on this list, the typical household earns more than the national median household income of $78,538.
This is the most affordable city for renters in each state.
Why It Matters
With home prices hovering near all-time highs, and mortgage rates at their highest level in over a decade, the United States is in the midst of a housing affordability crisis. In these conditions, many Americans who would otherwise be looking to buy a home are renting. Whether renting involuntarily or out of financial prudence, there are certain parts of the country where renting is far more affordable than average.
Alabama: Madison
- Median annual rent as a share of household income: 12.6% (18.6% statewide)
- Gross median monthly rent: $1,375 ($963 statewide)
- Median household income: $131,436 ($62,027 statewide)
- Renters paying $3,000 or more per month: 2.2% (0.7% statewide)
- Renters paying less than $1,000 per month: 15.3% (53.5% statewide)
- Rental vacancy rate: 2.2% (7.5% statewide)
- Cities considered in state: 10
Alaska: Anchorage
- Median annual rent as a share of household income: 17.8% (18.6% statewide)
- Gross median monthly rent: $1,453 ($1,388 statewide)
- Median household income: $98,152 ($89,336 statewide)
- Renters paying $3,000 or more per month: 3% (2.1% statewide)
- Renters paying less than $1,000 per month: 17.5% (22.7% statewide)
- Rental vacancy rate: 8.5% (7.3% statewide)
- Cities considered in state: 1
Arizona: Catalina Foothills
- Median annual rent as a share of household income: 14.1% (22.3% statewide)
- Gross median monthly rent: $1,332 ($1,431 statewide)
- Median household income: $113,201 ($76,872 statewide)
- Renters paying $3,000 or more per month: 6.9% (3.0% statewide)
- Renters paying less than $1,000 per month: 22% (22.4% statewide)
- Rental vacancy rate: 10.5% (5.3% statewide)
- Cities considered in state: 23
Arkansas: Bentonville
- Median annual rent as a share of household income: 13.7% (18.7% statewide)
- Gross median monthly rent: $1,238 ($914 statewide)
- Median household income: $108,465 ($58,773 statewide)
- Renters paying $3,000 or more per month: 0.6% (0.7% statewide)
- Renters paying less than $1,000 per month: 22.7% (60.4% statewide)
- Rental vacancy rate: 8.6% (6.5% statewide)
- Cities considered in state: 9
California: Beaumont
- Median annual rent as a share of household income: 17.2% (24.4% statewide)
- Gross median monthly rent: $1,505 ($1,956 statewide)
- Median household income: $105,164 ($96,334 statewide)
- Renters paying $3,000 or more per month: 4.7% (17.1% statewide)
- Renters paying less than $1,000 per month: 20.8% (11.7% statewide)
- Rental vacancy rate: 0.8% (4.1% statewide)
- Cities considered in state: 187
Colorado: Castle Rock
- Median annual rent as a share of household income: 16.3% (22.0% statewide)
- Gross median monthly rent: $1,946 ($1,693 statewide)
- Median household income: $143,031 ($92,470 statewide)
- Renters paying $3,000 or more per month: 12.5% (5.8% statewide)
- Renters paying less than $1,000 per month: 7% (14.5% statewide)
- Rental vacancy rate: 4.6% (5.1% statewide)
- Cities considered in state: 20
Connecticut: West Hartford
- Median annual rent as a share of household income: 15.9% (18.3% statewide)
- Gross median monthly rent: $1,665 ($1,431 statewide)
- Median household income: $125,616 ($93,760 statewide)
- Renters paying $3,000 or more per month: 6% (5.3% statewide)
- Renters paying less than $1,000 per month: 13.8% (21.8% statewide)
- Rental vacancy rate: 4.1% (4.6% statewide)
- Cities considered in state: 14
Delaware: Wilmington
- Median annual rent as a share of household income: 25.8% (19.4% statewide)
- Gross median monthly rent: $1,187 ($1,341 statewide)
- Median household income: $55,269 ($82,855 statewide)
- Renters paying $3,000 or more per month: 0.3% (1.4% statewide)
- Renters paying less than $1,000 per month: 34% (21.8% statewide)
- Rental vacancy rate: 4.4% (4.8% statewide)
- Cities considered in state: 1
Florida: Pensacola
- Median annual rent as a share of household income: 20.0% (26.2% statewide)
- Gross median monthly rent: $1,209 ($1,564 statewide)
- Median household income: $72,699 ($71,711 statewide)
- Renters paying $3,000 or more per month: 1.5% (4.9% statewide)
- Renters paying less than $1,000 per month: 25.9% (16.3% statewide)
- Rental vacancy rate: 3.7% (7.6% statewide)
- Cities considered in state: 80
Georgia: Alpharetta
- Median annual rent as a share of household income: 15.3% (21.0% statewide)
- Gross median monthly rent: $1,874 ($1,306 statewide)
- Median household income: $146,581 ($74,664 statewide)
- Renters paying $3,000 or more per month: 13.9% (1.9% statewide)
- Renters paying less than $1,000 per month: 6.4% (29.5% statewide)
- Rental vacancy rate: 7.5% (6.7% statewide)
- Cities considered in state: 19
Hawaii: East Honolulu
- Median annual rent as a share of household income: 24.6% (23.7% statewide)
- Gross median monthly rent: $3,249 ($1,938 statewide)
- Median household income: $158,398 ($98,317 statewide)
- Renters paying $3,000 or more per month: 59.2% (21.2% statewide)
- Renters paying less than $1,000 per month: 2.1% (13.4% statewide)
- Rental vacancy rate: 7% (7.8% statewide)
- Cities considered in state: 2
Idaho: Idaho Falls
- Median annual rent as a share of household income: 17.1% (18.5% statewide)
- Gross median monthly rent: $992 ($1,150 statewide)
- Median household income: $69,630 ($74,636 statewide)
- Renters paying $3,000 or more per month: 3.1% (1.6% statewide)
- Renters paying less than $1,000 per month: 51% (38.3% statewide)
- Rental vacancy rate: 4.7% (3.5% statewide)
- Cities considered in state: 8
Illinois: Naperville
- Median annual rent as a share of household income: 14.7% (18.0% statewide)
- Gross median monthly rent: $1,852 ($1,227 statewide)
- Median household income: $150,937 ($81,702 statewide)
- Renters paying $3,000 or more per month: 9.5% (3.8% statewide)
- Renters paying less than $1,000 per month: 5.5% (32.9% statewide)
- Rental vacancy rate: 4.2% (5.2% statewide)
- Cities considered in state: 29
Indiana: Fishers
- Median annual rent as a share of household income: 14.0% (17.5% statewide)
- Gross median monthly rent: $1,491 ($1,020 statewide)
- Median household income: $128,141 ($70,051 statewide)
- Renters paying $3,000 or more per month: 2.8% (0.8% statewide)
- Renters paying less than $1,000 per month: 3.5% (48.1% statewide)
- Rental vacancy rate: 5.9% (5.8% statewide)
- Cities considered in state: 21
Iowa: Ankeny
- Median annual rent as a share of household income: 14.4% (15.6% statewide)
- Gross median monthly rent: $1,279 ($949 statewide)
- Median household income: $106,603 ($73,147 statewide)
- Renters paying $3,000 or more per month: 1% (1.3% statewide)
- Renters paying less than $1,000 per month: 29.6% (56.0% statewide)
- Rental vacancy rate: 4.6% (5.7% statewide)
- Cities considered in state: 11
Kansas: Shawnee
- Median annual rent as a share of household income: 13.9% (17.0% statewide)
- Gross median monthly rent: $1,233 ($1,029 statewide)
- Median household income: $106,312 ($72,639 statewide)
- Renters paying $3,000 or more per month: 0.6% (1.3% statewide)
- Renters paying less than $1,000 per month: 18.8% (47.5% statewide)
- Rental vacancy rate: 2.5% (6.5% statewide)
- Cities considered in state: 9
Kentucky: Lexington-Fayette
- Median annual rent as a share of household income: 19.5% (17.9% statewide)
- Gross median monthly rent: $1,101 ($933 statewide)
- Median household income: $67,631 ($62,417 statewide)
- Renters paying $3,000 or more per month: 0.5% (0.5% statewide)
- Renters paying less than $1,000 per month: 40.4% (57.5% statewide)
- Rental vacancy rate: 4.2% (5.0% statewide)
- Cities considered in state: 4
Louisiana: Metairie
- Median annual rent as a share of household income: 19.0% (20.8% statewide)
- Gross median monthly rent: $1,159 ($1,038 statewide)
- Median household income: $73,256 ($60,023 statewide)
- Renters paying $3,000 or more per month: 1.2% (0.8% statewide)
- Renters paying less than $1,000 per month: 29.4% (46.6% statewide)
- Rental vacancy rate: 5.1% (7.8% statewide)
- Cities considered in state: 8
Maine: Portland
- Median annual rent as a share of household income: 23.4% (18.1% statewide)
- Gross median monthly rent: $1,487 ($1,084 statewide)
- Median household income: $76,174 ($71,773 statewide)
- Renters paying $3,000 or more per month: 2.5% (1.6% statewide)
- Renters paying less than $1,000 per month: 20.7% (43.4% statewide)
- Rental vacancy rate: 4.2% (4.3% statewide)
- Cities considered in state: 1
Maryland: Ellicott City
- Median annual rent as a share of household income: 15.2% (19.6% statewide)
- Gross median monthly rent: $2,001 ($1,662 statewide)
- Median household income: $157,891 ($101,652 statewide)
- Renters paying $3,000 or more per month: 11.2% (5.4% statewide)
- Renters paying less than $1,000 per month: 4.2% (15.5% statewide)
- Rental vacancy rate: 5.9% (4.9% statewide)
- Cities considered in state: 18
Massachusetts: Newton
- Median annual rent as a share of household income: 15.5% (20.0% statewide)
- Gross median monthly rent: $2,388 ($1,687 statewide)
- Median household income: $184,989 ($101,341 statewide)
- Renters paying $3,000 or more per month: 29% (11.7% statewide)
- Renters paying less than $1,000 per month: 13.7% (23.0% statewide)
- Rental vacancy rate: 3.3% (3.4% statewide)
- Cities considered in state: 25
Michigan: Troy
- Median annual rent as a share of household income: 15.7% (18.3% statewide)
- Gross median monthly rent: $1,557 ($1,084 statewide)
- Median household income: $119,299 ($71,149 statewide)
- Renters paying $3,000 or more per month: 4.4% (1.6% statewide)
- Renters paying less than $1,000 per month: 16.5% (42.3% statewide)
- Rental vacancy rate: 6.7% (5.0% statewide)
- Cities considered in state: 24
Minnesota: Lakeville
- Median annual rent as a share of household income: 15.0% (16.9% statewide)
- Gross median monthly rent: $1,727 ($1,235 statewide)
- Median household income: $138,119 ($87,556 statewide)
- Renters paying $3,000 or more per month: 6.6% (2.6% statewide)
- Renters paying less than $1,000 per month: 16.6% (31.9% statewide)
- Rental vacancy rate: 5% (5.1% statewide)
- Cities considered in state: 19
Mississippi: Southaven
- Median annual rent as a share of household income: 21.4% (20.2% statewide)
- Gross median monthly rent: $1,361 ($923 statewide)
- Median household income: $76,159 ($54,915 statewide)
- Renters paying $3,000 or more per month: 0% (0.5% statewide)
- Renters paying less than $1,000 per month: 14.1% (58.1% statewide)
- Rental vacancy rate: 19% (8.6% statewide)
- Cities considered in state: 3
Missouri: O’Fallon
- Median annual rent as a share of household income: 15.7% (17.3% statewide)
- Gross median monthly rent: $1,400 ($996 statewide)
- Median household income: $107,203 ($68,920 statewide)
- Renters paying $3,000 or more per month: 3.1% (1.1% statewide)
- Renters paying less than $1,000 per month: 15.9% (50.4% statewide)
- Rental vacancy rate: 0.8% (5.0% statewide)
- Cities considered in state: 13
Montana: Great Falls
- Median annual rent as a share of household income: 16.3% (17.7% statewide)
- Gross median monthly rent: $866 ($1,031 statewide)
- Median household income: $63,934 ($69,922 statewide)
- Renters paying $3,000 or more per month: 2.1% (1.7% statewide)
- Renters paying less than $1,000 per month: 64.6% (47.6% statewide)
- Rental vacancy rate: 5.5% (5.6% statewide)
- Cities considered in state: 4
Nebraska: Bellevue
- Median annual rent as a share of household income: 16.5% (16.6% statewide)
- Gross median monthly rent: $1,202 ($1,035 statewide)
- Median household income: $87,343 ($74,985 statewide)
- Renters paying $3,000 or more per month: 1.2% (1.4% statewide)
- Renters paying less than $1,000 per month: 28.3% (46.9% statewide)
- Rental vacancy rate: 5.8% (4.7% statewide)
- Cities considered in state: 4
Nevada: Carson City
- Median annual rent as a share of household income: 19.6% (23.6% statewide)
- Gross median monthly rent: $1,172 ($1,489 statewide)
- Median household income: $71,809 ($75,561 statewide)
- Renters paying $3,000 or more per month: 0.4% (2.3% statewide)
- Renters paying less than $1,000 per month: 32.5% (16.3% statewide)
- Rental vacancy rate: 3.4% (6.7% statewide)
- Cities considered in state: 10
New Hampshire: Nashua
- Median annual rent as a share of household income: 21.4% (17.9% statewide)
- Gross median monthly rent: $1,652 ($1,423 statewide)
- Median household income: $92,457 ($95,628 statewide)
- Renters paying $3,000 or more per month: 2.3% (2.5% statewide)
- Renters paying less than $1,000 per month: 13.4% (22.0% statewide)
- Rental vacancy rate: 1.6% (3.9% statewide)
- Cities considered in state: 2
New Jersey: Hoboken
- Median annual rent as a share of household income: 19.1% (19.6% statewide)
- Gross median monthly rent: $2,819 ($1,653 statewide)
- Median household income: $176,943 ($101,050 statewide)
- Renters paying $3,000 or more per month: 45.7% (7.6% statewide)
- Renters paying less than $1,000 per month: 11.9% (15.0% statewide)
- Rental vacancy rate: 5.6% (3.6% statewide)
- Cities considered in state: 19
New Mexico: Albuquerque
- Median annual rent as a share of household income: 19.8% (19.7% statewide)
- Gross median monthly rent: $1,085 ($1,021 statewide)
- Median household income: $65,604 ($62,125 statewide)
- Renters paying $3,000 or more per month: 1.1% (1.0% statewide)
- Renters paying less than $1,000 per month: 43% (48.5% statewide)
- Rental vacancy rate: 5.4% (6.1% statewide)
- Cities considered in state: 4
New York: Tonawanda Town
- Median annual rent as a share of household income: 16.6% (22.4% statewide)
- Gross median monthly rent: $1,062 ($1,576 statewide)
- Median household income: $76,644 ($84,578 statewide)
- Renters paying $3,000 or more per month: 0.2% (12.0% statewide)
- Renters paying less than $1,000 per month: 41.8% (24.2% statewide)
- Rental vacancy rate: 3.3% (3.8% statewide)
- Cities considered in state: 17
North Carolina: Wake Forest
- Median annual rent as a share of household income: 14.5% (19.9% statewide)
- Gross median monthly rent: $1,458 ($1,162 statewide)
- Median household income: $120,777 ($69,904 statewide)
- Renters paying $3,000 or more per month: 4.5% (1.4% statewide)
- Renters paying less than $1,000 per month: 10.7% (37.6% statewide)
- Rental vacancy rate: 7% (6.9% statewide)
- Cities considered in state: 22
North Dakota: Bismarck
- Median annual rent as a share of household income: 15.3% (14.8% statewide)
- Gross median monthly rent: $992 ($934 statewide)
- Median household income: $77,608 ($75,949 statewide)
- Renters paying $3,000 or more per month: 1.1% (0.9% statewide)
- Renters paying less than $1,000 per month: 51% (56.9% statewide)
- Rental vacancy rate: 8.5% (9.3% statewide)
- Cities considered in state: 3
Ohio: Kettering
- Median annual rent as a share of household income: 16.5% (17.0% statewide)
- Gross median monthly rent: $983 ($988 statewide)
- Median household income: $71,619 ($69,680 statewide)
- Renters paying $3,000 or more per month: 3.8% (1.0% statewide)
- Renters paying less than $1,000 per month: 51.9% (51.3% statewide)
- Rental vacancy rate: 0.8% (4.3% statewide)
- Cities considered in state: 18
Oklahoma: Edmond
- Median annual rent as a share of household income: 15.4% (18.5% statewide)
- Gross median monthly rent: $1,313 ($980 statewide)
- Median household income: $102,032 ($63,603 statewide)
- Renters paying $3,000 or more per month: 2.3% (0.9% statewide)
- Renters paying less than $1,000 per month: 23.8% (52.3% statewide)
- Rental vacancy rate: 5.4% (6.8% statewide)
- Cities considered in state: 9
Oregon: Tigard
- Median annual rent as a share of household income: 19.8% (21.6% statewide)
- Gross median monthly rent: $1,732 ($1,450 statewide)
- Median household income: $105,008 ($80,426 statewide)
- Renters paying $3,000 or more per month: 3.1% (3.2% statewide)
- Renters paying less than $1,000 per month: 6.1% (20.8% statewide)
- Rental vacancy rate: 5.2% (3.8% statewide)
- Cities considered in state: 13
Pennsylvania: Levittown
- Median annual rent as a share of household income: 17.7% (18.3% statewide)
- Gross median monthly rent: $1,501 ($1,162 statewide)
- Median household income: $101,619 ($76,081 statewide)
- Renters paying $3,000 or more per month: 0% (2.4% statewide)
- Renters paying less than $1,000 per month: 13.8% (37.7% statewide)
- Rental vacancy rate: 6.1% (4.9% statewide)
- Cities considered in state: 10
Rhode Island: Warwick
- Median annual rent as a share of household income: 17.8% (17.7% statewide)
- Gross median monthly rent: $1,299 ($1,273 statewide)
- Median household income: $87,536 ($86,372 statewide)
- Renters paying $3,000 or more per month: 0.6% (2.2% statewide)
- Renters paying less than $1,000 per month: 28.8% (30.2% statewide)
- Rental vacancy rate: 3% (4.5% statewide)
- Cities considered in state: 4
South Carolina: Mount Pleasant
- Median annual rent as a share of household income: 20.0% (20.2% statewide)
- Gross median monthly rent: $2,026 ($1,126 statewide)
- Median household income: $121,364 ($66,818 statewide)
- Renters paying $3,000 or more per month: 11.6% (1.5% statewide)
- Renters paying less than $1,000 per month: 4.1% (39.3% statewide)
- Rental vacancy rate: 13.4% (8.3% statewide)
- Cities considered in state: 7
South Dakota: Sioux Falls
- Median annual rent as a share of household income: 15.9% (15.1% statewide)
- Gross median monthly rent: $993 ($912 statewide)
- Median household income: $74,714 ($72,421 statewide)
- Renters paying $3,000 or more per month: 1.2% (0.9% statewide)
- Renters paying less than $1,000 per month: 51% (59.3% statewide)
- Rental vacancy rate: 5.6% (6.1% statewide)
- Cities considered in state: 2
Tennessee: Collierville
- Median annual rent as a share of household income: 14.1% (20.1% statewide)
- Gross median monthly rent: $1,574 ($1,122 statewide)
- Median household income: $134,319 ($67,097 statewide)
- Renters paying $3,000 or more per month: 4.7% (1.4% statewide)
- Renters paying less than $1,000 per month: 10.4% (40.7% statewide)
- Rental vacancy rate: 12.4% (6.1% statewide)
- Cities considered in state: 15
Texas: The Woodlands
- Median annual rent as a share of household income: 15.2% (21.1% statewide)
- Gross median monthly rent: $1,792 ($1,339 statewide)
- Median household income: $141,353 ($76,292 statewide)
- Renters paying $3,000 or more per month: 15.2% (2.4% statewide)
- Renters paying less than $1,000 per month: 9.7% (24.1% statewide)
- Rental vacancy rate: 10.5% (7.4% statewide)
- Cities considered in state: 74
Utah: Draper
- Median annual rent as a share of household income: 16.6% (18.4% statewide)
- Gross median monthly rent: $1,812 ($1,405 statewide)
- Median household income: $130,680 ($91,750 statewide)
- Renters paying $3,000 or more per month: 3.6% (2.2% statewide)
- Renters paying less than $1,000 per month: 3.2% (22.0% statewide)
- Rental vacancy rate: 2.7% (5.6% statewide)
- Cities considered in state: 16
Virginia: Reston
- Median annual rent as a share of household income: 18.7% (20.0% statewide)
- Gross median monthly rent: $2,170 ($1,514 statewide)
- Median household income: $139,515 ($90,974 statewide)
- Renters paying $3,000 or more per month: 12.9% (6.2% statewide)
- Renters paying less than $1,000 per month: 7.3% (22.8% statewide)
- Rental vacancy rate: 5.5% (4.9% statewide)
- Cities considered in state: 16
Washington: Sammamish
- Median annual rent as a share of household income: 14.4% (21.3% statewide)
- Gross median monthly rent: $2,728 ($1,682 statewide)
- Median household income: $227,273 ($94,952 statewide)
- Renters paying $3,000 or more per month: 38.4% (8.1% statewide)
- Renters paying less than $1,000 per month: 1.3% (16.8% statewide)
- Rental vacancy rate: 0.5% (4.3% statewide)
- Cities considered in state: 26
Wisconsin: Appleton
- Median annual rent as a share of household income: 14.8% (16.6% statewide)
- Gross median monthly rent: $957 ($1,045 statewide)
- Median household income: $77,450 ($75,670 statewide)
- Renters paying $3,000 or more per month: 1.3% (1.2% statewide)
- Renters paying less than $1,000 per month: 54.3% (45.8% statewide)
- Rental vacancy rate: 2.5% (4.7% statewide)
- Cities considered in state: 12
Wyoming: Cheyenne
- Median annual rent as a share of household income: 16.1% (15.5% statewide)
- Gross median monthly rent: $1,035 ($968 statewide)
- Median household income: $77,176 ($74,815 statewide)
- Renters paying $3,000 or more per month: 1.5% (1.5% statewide)
- Renters paying less than $1,000 per month: 46.8% (53.2% statewide)
- Rental vacancy rate: 1.8% (7.9% statewide)
- Cities considered in state: 2
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