Renters Find Their Income Goes Further in These Cities

Cost is a big consideration for renters in choosing a location. However, a recent report from Rentcafe indicates today’s renters are seeking more than just an affordable rental location. In fact, renters are seeking the appropriate balance between income and expenses.

For starters, the analysis examined components such as median income, average rent, and average prices for necessities such as utilities, food, healthcare, transportation, and goods in services, in 189 cities nationwide. Next, income-to-rent ratio was calculated for each city. Then, the disposable income left after paying rent was determined to see how well necessities could be covered each month.

Sunnyvale, CA was determined the city where renters can get the most out of their income. Located in the heart of Silicon Valley, Sunnyvale has the highest median wages in the nation, triple the nation’s median income. Average renter household income in Sunnyvale is just under $146,000 and monthly rent is about $3,000. While the monthly rent in this city is 76% higher than the average, the total price for basics came in at only 28% more than the national average.

Surprise, AZ came in second on the report, with a median income that could cover four average monthly rents at $86,000. This city in the Phoenix metro area is home to several tech and healthcare giants. Renters here have the seventh-highest annual median income with an average rent of $1,700, which is in line with the national average. In addition, the monthly costs for basics are $1,004, which is below the national average.

Three Washington, D.C. suburbs followed the top two cities. They are Arlington, VA; Bethesda, MD; and Alexandria, VA. All three cities offer high incomes and prices for necessities aligned with national averages.

However, cities like Buffalo, NY; Milwaukee; Baltimore; Cincinnati; and Cleveland are at the other end of the spectrum, according to the report. In these areas, monthly rent and expenses for daily necessities are below average. At the same time, incomes are lower, which makes the financial balance renters seek difficult to achieve.

In terms of regions, renters in the Southwest were better able to achieve financial stability. This is due to cities in that region typically offering higher wages, while rents are close to the national average. The Southeast had the most cities, nine, that made the top 30 in the report. Texas was the state with the most cities where renters were the most well-off financially. In direct contrast, renters find it challenging to cover rent and basics in the Northeast cities.