The Most Affordable U.S. States
and Cities for Tenants

U.S. States with The Highest Rent Relative to Income

All five states with the highest asking rent rates belong either to the Northeastern or the Western regions of the US. According to a study by Visual Capitalist, America’s East and West Coasts together contribute about half of the country’s $27 trillion GDP. The West remains a technological haven, home to Alphabet, Apple, Meta, and Nvidia. The Northeast, on the other hand, houses several financial giants, such as JPMorgan Chase, Goldman Sachs, Citi, Bank of America, and Morgan Stanley.

Hawaii generally has a high cost of living, largely due to its insularity and dependence on imports. As Hawaii’s population keeps rising, housing remains difficult to acquire, and it is disproportionately expensive when compared with housing costs in many mainland states. For those reasons, even with a relatively high monthly income of $5,073.88, in Hawaii rent would eat up 44.96% of your monthly spending.

Housing demand in California is outpacing supply, and the relatively high wages in the area mean people can afford to pay higher prices. Hence, competition is tough among Californian renters. With an average rent of $2,171 and a median monthly salary of $5,501, 39.47% of your allotted monthly spending would go to accommodation.

Maryland’s rental costs are among the highest in the nation, alongside California and Hawaii. If you’re considering renting a two-bedroom unit, be prepared for an average monthly cost of around $1,870, which would take up to 37.77% of your monthly budget.

As one of the most densely populated states in the United States, New Jersey has a relatively high cost of living, especially in areas close to New York City, such as Jersey City and Hoboken. With an average asking rent of $1,913, renting in Jersey would cost 37.48% of your allotted monthly allowance.

New York is one of the most expensive places to settle down. However, if you’re set on the unique privilege of calling one of the world’s most iconic states home, be prepared to spend 37% of your monthly allowance on rent alone. Adding utilities on top of rent could mean implementing some strict budgeting in order to stretch the average monthly wage of $5,078.

Unsurprisingly, states from the Northeastern and Western regions boast both the highest median asking rent and the highest average monthly income. This in itself allows us to conclude that rent as a percentage of the monthly wage is the highest along the Eastern and Western U.S. coasts. The Midwest, Southwest, and Southeast, by comparison, offer lower median asking rent and generally tend to be more affordable than their coastal counterparts.

Top 10 cities with the least affordable rent relative to income

Nine out of the ten most unaffordable cities in the United States are located in California, which unsurprisingly ranks as the second least affordable state. With only one location on our list, however, Hawaii is absent from this ranking.

The city with the least affordable rents on the basis of median monthly income is Hoboken, New Jersey, where rent itself would take up 67.16% of your monthly earnings. The cost of living in Hoboken is slightly higher than the U.S. average, with rent for a two-bedroom apartment estimated at about $4,063 per month. Despite the high costs, many are drawn to Hoboken for its prime location and vibrant atmosphere.

The remaining nine positions on our list are exclusively occupied by cities in California. With an average monthly income of $5,501, the variation in monthly asking rent across these cities significantly impacts rental affordability.

Calabasas tops the California rankings with a median asking rent of $3,447, closely followed by San Mateo at $3,345. Renting accommodation in Calabasas and San Mateo would take up 62.66% and 60.8% of your allotted monthly income, respectively.

Affordability ratios in Newport Beach ($3,296), Menlo Park ($3,243), and Lake Forest ($3,204) range from 59.91% to 58.95%, and 58.24%. Sunnyvale ($3,194), Dublin ($3,181), Redwood City ($3,125), and Mountain View ($3,105) round out the list with affordability percentages of 58.06%, 57.82%, 56.80%, and 56.44%, respectively.

Top 10 cities with the most affordable rent relative to income

Cities in the West, Southwest, and Midwest states dominate the list of areas with the lowest rent price to income ratio, with the state of Virginia in the Southeast as a notable exception.

Seguin, Texas, ranks as the most affordable city in the United States for renters. With an average rent of $897, housing costs there account for just 17.81% of the average monthly income. In Toledo, Ohio, rent is slightly lower at $882 per month, but it represents a slightly higher share, 19.22%, of local income, placing it just behind Seguin in terms of affordability.

Spokane, Washington comes in third place, despite having the highest rent figure on the list at $1,146. However, thanks to a relatively high average income, rent in Spokane only consumes 19.57% of one’s monthly income.

Temple, Texas follows with an average rent of $991, which amounts to 19.68% of the area’s typical income. Fargo, North Dakota shows similar figures, but due to a lower state average income of $4,744.20, its rent burden is slightly higher at 19.75%.

Lawton, Oklahoma offers the lowest rent in the United States at $865. However, due to lower incomes in the region, it ranks sixth in terms of affordability rather than first.

Lynchburg and Roanoke, Virginia have almost identical asking rents$1,007 and $1,009, respectively. With a median monthly income of $4,993.48, rent in these cities takes up 20.17% and 20.21% of earnings. .

At the bottom of the list are two more Texan cities: San Angelo and Longview. With median rents of $1,057 and $1,070, housing costs in these areas consume 20.99% and 21.25% of the average monthly income, respectively.