Tenants In These Cities Are Spending the Highest Percentage of Income on Rent

The age-old financial planning rule cautioning consumers not to spend ore than 30% of their incomes on rent is “all but thrown out the window” thanks to rising costs, according to a new analysis from MyEListing.com.

Using Census Bureau data, the firm found that more than half of all Americans spend in excess of 30% of their incomes on rent each month, while more than two in five renters spend 35% or more. In addition, 61% of all US metros surveyed by the firm have more than 40% of residents paying more than 35% of their income in rent.

The cities where rent will cost you the highest percentage of income include Sebastian-Vero Beach Fla. (61%); Hammond, La. (58%); Bloomington, Ind. (57%); Auburn, Ala. (56%); and East Stroudsburg, Pa. (55%). Among the top 50 list, “Florida had many cities rank,” the report notes. “For example, the demand for housing in Miami is among the largest in the nation, especially after the pandemic. A fixed supply of housing and high demand forces higher rent, leading to more individuals paying more than 30% of their monthly budget in rent and other housing costs.”

And “due to lower wages, cities like Hammond, Louisiana; Bloomington, Indiana; and Auburn-Opelika, Alabama also saw high rents relative to income. For example, Auburn has a median household income of $49,028 per year, with 26% of persons living in poverty. Those are some of the lowest median wages and highest poverty levels in the country.”

States where rent costs the highest percentage of income are Florida, Louisiana, Hawaii, California, and Nevada.

Cities where renting costs the lowest percentage of income include Jefferson City, Mo.; Elizabethtown, Ky,; Farmington, NM; Kankakee, Ill,; and Appleton, Wis.