The Most Affordable US States
and Cities for Tenants

US states with the highest rent relative to income

All five states where rent constitutes the largest share of income lie either on the East or West Coast or, as in the case of Hawaii, outside the contiguous 48. Hawaii has long been among the most expensive places in the US, with high prices for everything from groceries and consumer goods to housing. The state records the highest rents nationwide, at $2,325 a month (and three- and four-bedroom houses are typically much pricier), while wages have failed to keep pace. The median rent therefore consumes nearly half (46.12%) of the average salary, which, as of June 2025, stands at $5,041.08 before tax.

Hawaii’s high housing costs are easy to explain and will not surprise anyone who has been following the property market in recent years. Land is limited, construction is costly, demand is exceptional, and supply is tightly constrained by geography and regulation. Furthermore, because it is a popular tourist destination, many landlords focus on high-revenue short-term lets rather than offer their units on the long-term rental market. This squeezes supply even further and makes it nearly impossible for residents to find a home to rent.

California is another state where housing demand is rapidly outpacing supply, pushing rents higher; it ranks as the second most expensive US state for tenants. As elsewhere, zoning and land-use restrictions, high construction costs and limited room for expansion in urban areas hamper new building. Moreover, California has a strong economy and job market: it is home to technology hubs, and the concentration of high-growth companies means incomes are significantly higher than in the rest of the country. When people are both willing and able to pay more for homes in highly desirable locations, asking prices and rents rise quickly.

Currently, the median rent in California is $2,197 a month, while the average salary is $5,572.96 before tax. Consequently, residents of the Golden State spend just over 39.42% of their wages on rent. Other similarly expensive states are New Jersey, where rents consume 38.57% of the monthly wage, Maryland at 38.16%, and New York at 38.05%.

California cities among the least affordable rental markets in the US

Nine of the ten most expensive US cities for renting are in California, which is hardly surprising. The least affordable is Thousand Oaks, the second-largest city in Ventura County, renowned for attracting affluent residents. Its suburban lifestyle, scenic backdrop and high average income, together with its proximity to Los Angeles and Santa Barbara, drive up housing prices and rents. As of summer 2025, the median rent in Thousand Oaks absorbs 65.57% of the average wage.

Top 10 cities with the least affordable rent relative to income

Similar trends are observed in the other Californian cities on this list: prime location, limited supply, prestigious employers, high incomes and intense market competition. Tenants should therefore be prepared to allocate more than half of their monthly earnings to rent. Despite Hawaii’s overall high rents, no Hawaiian city features in this ranking.

However, the city with the least affordable rents relative to income is Hoboken, New Jersey, where rent consumes more than two-thirds of the average monthly earnings (68.25%). Rents are sky-high because Hoboken is a small, in-demand city just across the river from New York City, with severely constrained supply and a landlord market that leverages data-driven pricing. Its proximity to Manhattan and lifestyle perks – walkable streets, riverfront parks, and so on – keep demand strong. The limited stock means rents are likely to keep rising, especially as more people choose Hoboken as an alternative to the pricey New York City neighbourhoods.

Top 10 cities with the most affordable rent relative to income

The most affordable US cities for tenants tend to be less in demand and have more stable housing markets. Unlike the hot markets in California, Florida or New York, they attract fewer institutional landlords or property investors, who often drive up rents through aggressive pricing and short-term lets. These cities remain affordable because they strike a rare balance: moderate or high wages relative to rents, ample housing supply, and less external investor pressure than the coastal hot spots.

Huntsville, Alabama, tops the list, with a median rent of $1,006 accounting for just 18.23% of the average monthly wage ($5,519). Housing costs are relatively low but, more importantly, wages are supported by strong local industries such as aerospace, defence and technology. Land is plentiful, construction costs are lower, and urban-density pressures are less severe than in coastal markets.

Other cities on the list, such as Detroit, MI, and Toledo, OH, still have very low property values relative to incomes after decades of population decline and economic restructuring. Although wages have improved modestly, housing supply still far exceeds demand, keeping rents low. Places like LaGrange, GA, and Seguin, TX, are within commuting distance of larger metropolitan areas (Atlanta and San Antonio respectively) but do not face the same rental pressure. This allows residents to earn metropolitan-level wages while paying small-city rents. Cities such as Madison, AL (part of the fast-growing Huntsville metro) and Clute, TX (near Houston but outside the high-demand core) are expanding, but housing construction has kept pace with population increases, preserving affordability.