With rent payments soaking up to as much as one-third of median income in some areas, WalletHub is now offering its study “Cities with the Most Affordable Rent” to detail which metro areas enable renters to keep more of the earnings.
The data analysis of more than 180 cities found Bismarck, North Dakota, had the lowest percentage of income spent on rent at 15.34%. Rounding out the top five localities were Sioux Falls, South Dakota (15.95%), Cheyenne, Wyoming (16.09%), Cedar Rapids, Iowa (16.36%), and Fargo, North Dakota (16.65%).
At the other end of spectrum, the cities where the highest percentage of income was being spent on rent were Miami (33.48%), Newark, New Jersey (32.96%), New Haven, Connecticut (32.18%), Detroit (31.35%), and Glendale, California (29.84%).
“In the most affordable cities for renters, the median cost of rent is as low as 15% of the median income, compared to more than 33% in the most expensive cities,” said Chip Lupo, WalletHub analyst. “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 homeownership.”
Separately, Realtor.com reported rents declined in March for the 20th consecutive month, with the median asking price in the 50 largest metros is now $65 lower than the 2022 peak, standing at $1,694.
“While the median asking rent is down $65 monthly or over $700 annually, in nearly every major U.S. metro rents are still considerably higher than 2019,” said Joel Berner, senior economist at Realtor.com. “We have seen declines in rents largely due to robust multi-family building and permitting adding more rental options in many metros. This tailwind is currently under threat as developers grapple with the short-term and long-term impacts of new and evolving tariffs on building materials. For renters in cities with declining rents, it might be a good time to lock in a good rate for the next year or beyond.”
