These are the Most Affordable Rental Markets in the US
In the best cities for renters, rent can cost as little as 15% of income.
The best U.S. city for renters this year is Bismarck, North Dakota, and the state in general, according to a ranking compiled by WalletHub. Not only is Bismarck the most affordable market in the country, with renters spending only 15% of their annual income on rent, but it also has the lowest renters insurance premiums in the country at just $116 per year on average. Plus, the most landlords can charge for security deposits is one month’s rent.
In addition, homes in Bismarck average 2,376 square feet, and 20% of homes in the city were built between 2010 and 2022, the report said.
WalletHub compared more than 180 rental markets and ranked them based on 21 key measures of rental attractiveness and quality of life.
“In the best cities for renters, rent can cost you as little as around 15% of your income. You’ll also have access to robust laws that protect renters, such as limiting deposits to only a month or two of rent,” said WalletHub analyst Cassandra Happe. “Our study also considers quality-of-life factors such as a city’s traffic congestion, job market or recreation options to make sure you can get a good living experience, not just inexpensive housing.”
Second in WalletHub’s ranking was Overland Park, Kansas, which boasts the highest average home square footage in the country at 2,787 square feet and the fifth best rental affordability, with the average person only spending around 16% of their annual income on rent. In addition, only around 16% of households pay more than 50% of their income for housing, the fourth-lowest share in the country. Overland Park also has a highly-rated school system and a low crime rate.
Coming in third was Scottsdale, Arizona, which ranks as the best city for both availability of jobs and its favorable driving environment. It also has the fourth-best weather of the cities in the ranking and the sixth-best recreation options. Scottsdale isn’t the cheapest city to rent in, but it’s not among the most expensive either. It has the 42nd-best rental affordability out of 182 cities, with most people only spending around 20% of their annual income on rent.
Rounding out the top 10 best cities for renters were Sioux Falls, South Dakota; Lewiston, Maine; Chandler, Arizona; Fargo, North Dakota; Gilbert, Arizona; Huntsville, Alabama; and Lincoln, Nebraska.
The five cities with the best quality of life scores in WalletHub’s ranking are Scottsdale; Tampa; Chandler; Plano, Texas; and Pembroke Pines, Florida. The most affordable cities for renters were Bismarck; Cheyenne, Wyoming; Cedar Rapids, Iowa; Sioux Falls, South Dakota; and Overland Park. The least affordable were New Haven, Connecticut; Detroit, Miami, Newark; and Hialeah, Florida.
Rental vacancies were highest in Augusta, Georgia; Little Rock, Arkansas; Amarillo, Texas; Charleston, West Virginia; and Cedar Rapids. Vacancies were lowest in Cheyenne; Hialeah; Fontana, California; South Burlington, Vermont; and Nashua, New Hampshire.