A little over one-third of U.S. households rent their homes. While many associate homeownership with economic stability, renting is often a safer choice, granting more flexibility. At the same time, in cities across much of the country, for a large share of residents, particularly young ones, renting is the only financially feasible choice.
To determine the states with the highest rental rates, 24/7 Wall St. reviewed five-year estimates of the share of housing units that are occupied by renters from the U.S. Census Bureau’s 2020 American Community Survey.
Young people are far more likely to rent homes than buy. Well over half of all renters in the United States are under the age of 45, whereas that age group accounts for just one-quarter of homeowners. According to the census, 45.7% of Americans are under the age of 35. In Maine and West Virginia, which have the two lowest rental rates in the country, 38.7% and 40.8% of residents are under 35, the third smallest and smallest shares in the country, respectively.
Renting has some distinct financial benefits and drawbacks. Renters are not tied long-term to a property, and as such are safe from the risk of defaulting on a mortgage or losing a substantial share of their equity if the housing market tanks, as many homeowners experienced firsthand during the 2007 bursting of the housing bubble leading to the Great Recession.
On the other hand, renters are afforded less regulatory protection, and in high-demand and low-inventory markets like the current U.S. rental market, many landlords are hiking rents and tenants must pay larger and larger shares of their incomes.
In states where a higher share of houses are rental units, properties tend to be less affordable than in states with fewer renters. Hawaii, Nevada, California, and New York, which have the four highest rental rates, all rank among the 10 least affordable rental markets.
Click here to see the states where the most people rent their homes
Click here to read our detailed methodology
50. West Virginia
> Rental occupied housing units: 26.3%
> Median rental cost: $732 (the lowest)
> Median home value: $123,200 (the lowest)
> Median household income: $48,037 (2nd lowest)
[in-text-ad]
49. Maine
> Rental occupied housing units: 27.1%
> Median rental cost: $873 (19th lowest)
> Median home value: $198,000 (24th lowest)
> Median household income: $59,489 (19th lowest)
48. Minnesota
> Rental occupied housing units: 28.1%
> Median rental cost: $1,010 (23rd highest)
> Median home value: $235,700 (20th highest)
> Median household income: $73,382 (13th highest)
47. Michigan
> Rental occupied housing units: 28.3%
> Median rental cost: $892 (22nd lowest)
> Median home value: $162,600 (11th lowest)
> Median household income: $59,234 (18th lowest)
[in-text-ad-2]
46. Delaware
> Rental occupied housing units: 28.6%
> Median rental cost: $1,150 (15th highest)
> Median home value: $258,300 (17th highest)
> Median household income: $69,110 (16th highest)
45. Vermont
> Rental occupied housing units: 28.7%
> Median rental cost: $999 (24th highest)
> Median home value: $230,900 (23rd highest)
> Median household income: $63,477 (23rd highest)
[in-text-ad]
44. New Hampshire
> Rental occupied housing units: 28.8%
> Median rental cost: $1,145 (16th highest)
> Median home value: $272,300 (16th highest)
> Median household income: $77,923 (7th highest)
43. Iowa
> Rental occupied housing units: 28.8%
> Median rental cost: $806 (6th lowest)
> Median home value: $153,900 (9th lowest)
> Median household income: $61,836 (24th lowest)
42. Wyoming
> Rental occupied housing units: 29.0%
> Median rental cost: $853 (14th lowest)
> Median home value: $228,000 (24th highest)
> Median household income: $65,304 (20th highest)
[in-text-ad-2]
41. Idaho
> Rental occupied housing units: 29.2%
> Median rental cost: $887 (21st lowest)
> Median home value: $235,600 (21st highest)
> Median household income: $58,915 (17th lowest)
40. Utah
> Rental occupied housing units: 29.5%
> Median rental cost: $1,090 (18th highest)
> Median home value: $305,400 (10th highest)
> Median household income: $74,197 (12th highest)
[in-text-ad]
39. South Carolina
> Rental occupied housing units: 29.9%
> Median rental cost: $918 (24th lowest)
> Median home value: $170,100 (15th lowest)
> Median household income: $54,864 (10th lowest)
24/7 Wall St.
38. Indiana
> Rental occupied housing units: 30.5%
> Median rental cost: $844 (13th lowest)
> Median home value: $148,900 (6th lowest)
> Median household income: $58,235 (16th lowest)
37. Alabama
> Rental occupied housing units: 30.8%
> Median rental cost: $811 (7th lowest)
> Median home value: $149,600 (7th lowest)
> Median household income: $52,035 (6th lowest)
[in-text-ad-2]
36. Pennsylvania
> Rental occupied housing units: 31.0%
> Median rental cost: $958 (25th highest)
> Median home value: $187,500 (21st lowest)
> Median household income: $63,627 (22nd highest)
35. Mississippi
> Rental occupied housing units: 31.2%
> Median rental cost: $789 (5th lowest)
> Median home value: $125,500 (2nd lowest)
> Median household income: $46,511 (the lowest)
[in-text-ad]
34. Montana
> Rental occupied housing units: 31.5%
> Median rental cost: $836 (11th lowest)
> Median home value: $244,900 (18th highest)
> Median household income: $56,539 (11th lowest)
24/7 Wall St.
33. South Dakota
> Rental occupied housing units: 32.0%
> Median rental cost: $761 (3rd lowest)
> Median home value: $174,600 (16th lowest)
> Median household income: $59,896 (20th lowest)
32. New Mexico
> Rental occupied housing units: 32.0%
> Median rental cost: $857 (15th lowest — tied)
> Median home value: $175,700 (17th lowest)
> Median household income: $51,243 (5th lowest)
[in-text-ad-2]
31. Kentucky
> Rental occupied housing units: 32.4%
> Median rental cost: $783 (4th lowest)
> Median home value: $147,100 (5th lowest)
> Median household income: $52,238 (7th lowest)
30. Maryland
> Rental occupied housing units: 32.9%
> Median rental cost: $1,415 (3rd highest)
> Median home value: $325,400 (8th highest)
> Median household income: $87,063 (the highest)
[in-text-ad]
29. Wisconsin
> Rental occupied housing units: 32.9%
> Median rental cost: $872 (18th lowest)
> Median home value: $189,200 (22nd lowest)
> Median household income: $63,293 (24th highest)
24/7 Wall St.
28. Missouri
> Rental occupied housing units: 32.9%
> Median rental cost: $843 (12th lowest)
> Median home value: $163,600 (12th lowest)
> Median household income: $57,290 (13th lowest)
27. Virginia
> Rental occupied housing units: 33.3%
> Median rental cost: $1,257 (9th highest)
> Median home value: $282,800 (12th highest)
> Median household income: $76,398 (10th highest)
[in-text-ad-2]
26. Louisiana
> Rental occupied housing units: 33.4%
> Median rental cost: $876 (20th lowest)
> Median home value: $168,100 (14th lowest)
> Median household income: $50,800 (4th lowest)
25. Tennessee
> Rental occupied housing units: 33.5%
> Median rental cost: $897 (23rd lowest)
> Median home value: $177,600 (18th lowest)
> Median household income: $54,833 (9th lowest)
[in-text-ad]
24. Ohio
> Rental occupied housing units: 33.7%
> Median rental cost: $825 (9th lowest)
> Median home value: $151,400 (8th lowest)
> Median household income: $58,116 (15th lowest)
24/7 Wall St.
23. Illinois
> Rental occupied housing units: 33.7%
> Median rental cost: $1,038 (21st highest)
> Median home value: $202,100 (25th highest)
> Median household income: $68,428 (17th highest)
22. Nebraska
> Rental occupied housing units: 33.8%
> Median rental cost: $857 (15th lowest — tied)
> Median home value: $164,000 (13th lowest)
> Median household income: $63,015 (25th highest)
[in-text-ad-2]
21. Kansas
> Rental occupied housing units: 33.8%
> Median rental cost: $863 (17th lowest)
> Median home value: $157,600 (10th lowest)
> Median household income: $61,091 (21st lowest)
20. Colorado
> Rental occupied housing units: 33.8%
> Median rental cost: $1,335 (7th highest)
> Median home value: $369,900 (4th highest)
> Median household income: $75,231 (11th highest)
[in-text-ad]
19. Florida
> Rental occupied housing units: 33.8%
> Median rental cost: $1,218 (11th highest)
> Median home value: $232,000 (22nd highest)
> Median household income: $57,703 (14th lowest)
24/7 Wall St.
18. Connecticut
> Rental occupied housing units: 33.9%
> Median rental cost: $1,201 (12th highest)
> Median home value: $279,700 (13th highest)
> Median household income: $79,855 (5th highest)
17. Oklahoma
> Rental occupied housing units: 33.9%
> Median rental cost: $818 (8th lowest)
> Median home value: $142,400 (4th lowest)
> Median household income: $53,840 (8th lowest)
[in-text-ad-2]
16. Arkansas
> Rental occupied housing units: 34.2%
> Median rental cost: $760 (2nd lowest)
> Median home value: $133,600 (3rd lowest)
> Median household income: $49,475 (3rd lowest)
15. North Carolina
> Rental occupied housing units: 34.3%
> Median rental cost: $932 (25th lowest)
> Median home value: $182,100 (19th lowest)
> Median household income: $56,642 (12th lowest)
[in-text-ad]
14. Arizona
> Rental occupied housing units: 34.7%
> Median rental cost: $1,097 (17th highest)
> Median home value: $242,000 (19th highest)
> Median household income: $61,529 (23rd lowest)
13. Alaska
> Rental occupied housing units: 35.2%
> Median rental cost: $1,240 (10th highest)
> Median home value: $275,600 (15th highest)
> Median household income: $77,790 (8th highest)
12. New Jersey
> Rental occupied housing units: 36.0%
> Median rental cost: $1,368 (4th highest)
> Median home value: $343,500 (6th highest)
> Median household income: $85,245 (2nd highest)
[in-text-ad-2]
11. Georgia
> Rental occupied housing units: 36.0%
> Median rental cost: $1,042 (20th highest)
> Median home value: $190,200 (23rd lowest)
> Median household income: $61,224 (22nd lowest)
10. Washington
> Rental occupied housing units: 36.7%
> Median rental cost: $1,337 (5th highest)
> Median home value: $366,800 (5th highest)
> Median household income: $77,006 (9th highest)
[in-text-ad]
9. Oregon
> Rental occupied housing units: 37.2%
> Median rental cost: $1,173 (13th highest)
> Median home value: $336,700 (7th highest)
> Median household income: $65,667 (18th highest)
8. North Dakota
> Rental occupied housing units: 37.5%
> Median rental cost: $828 (10th lowest)
> Median home value: $199,900 (25th lowest)
> Median household income: $65,315 (19th highest)
7. Massachusetts
> Rental occupied housing units: 37.5%
> Median rental cost: $1,336 (6th highest)
> Median home value: $398,800 (3rd highest)
> Median household income: $84,385 (3rd highest)
[in-text-ad-2]
6. Texas
> Rental occupied housing units: 37.7%
> Median rental cost: $1,082 (19th highest)
> Median home value: $187,200 (20th lowest)
> Median household income: $63,826 (21st highest)
5. Rhode Island
> Rental occupied housing units: 38.4%
> Median rental cost: $1,031 (22nd highest)
> Median home value: $276,600 (14th highest)
> Median household income: $70,305 (15th highest)
[in-text-ad]
4. Hawaii
> Rental occupied housing units: 39.7%
> Median rental cost: $1,651 (the highest)
> Median home value: $636,400 (the highest)
> Median household income: $83,173 (4th highest)
3. Nevada
> Rental occupied housing units: 42.9%
> Median rental cost: $1,159 (14th highest)
> Median home value: $290,200 (11th highest)
> Median household income: $62,043 (25th lowest)
2. California
> Rental occupied housing units: 44.7%
> Median rental cost: $1,586 (2nd highest)
> Median home value: $538,500 (2nd highest)
> Median household income: $78,672 (6th highest)
[in-text-ad-2]
1. New York
> Rental occupied housing units: 45.9%
> Median rental cost: $1,315 (8th highest)
> Median home value: $325,000 (9th highest)
> Median household income: $71,117 (14th highest)
Methodology
To determine the states with the highest rental rates, 24/7 Wall St. reviewed five-year estimates of the share of housing units that are occupied by renters from the U.S. Census Bureau’s 2020 American Community Survey.
States were ranked based on the percentage of housing units that are occupied by renters. To break ties, we used the number of housing units that are occupied by renters.
Additional information on median rental cost, median home value, and median household income are also five-year estimates from the 2020 ACS. Because the Census Bureau didn’t release one-year estimates for 2020 due to data collection issues caused by the COVID-19 pandemic, all ACS data are five-year estimates.
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
