Cities With the Most Affordable Rent

Over the past decade, rental costs have increased by more than 50%, according to the Federal Reserve’s Consumer Price Index, reflecting a similar surge in home prices during the same period. However, wages have not grown at the same pace, making housing increasingly difficult for many people to afford. 

To identify the cities where rent is most affordable, WalletHub examined the median annual gross rent across more than 180 cities and compared it with the median household income in each location.

“In the most affordable cities for renters, the median cost of rent is as low as 15% of the median income, compared to nearly 34% in the most expensive cities. This gives people in the least expensive cities a clear financial advantage; the money they save on rent could go toward their emergency fund or savings for future home ownership.”

Chip Lupo, WalletHub Writer and Analyst

In-Depth Look at the Most Affordable Cities

Bismarck, ND

People in Bismarck, ND, have the most affordable rent as a percentage of their income. The median annual gross rent in the city is around 15.3% of the median annual income. For comparison, Miami residents spend more than double that, or 33.8% of their income.

Bismarck has the 16th-lowest median annual rent among the more than 180 cities in our study, but the 80th-highest median income, which is why their rent-to-income ratio is so low.

Sioux Falls, SD

Sioux Falls, SD, has the second-most affordable rent. Residents’ mean annual gross rent only costs around 16.4% of the median income. 

The median annual rent in Sioux Falls is only slightly more expensive than in Bismarck, the top city, ranking as the 20th-cheapest in the nation. It also has the 86th-highest median annual income among the more than 180 cities in our study.

Cedar Rapids, IA

Cedar Rapids, IA, is the city with the third-most affordable rent. Based on the median annual gross rent and median annual income, Cedar residents can expect to spend around 16.5% of their earnings on rent. 

When you look at dollar amounts, Cedar Rapids’s rent is the 10th-cheapest in the country, but when you combine that with the fact that the city has the 105th-highest median income, it leads to the third-lowest ratio of rent to income.

7 Tips for Saving Money on Rent

1. Pick a smaller or less fancy apartment: The larger your living space is and the more amenities it has, the more it’s going to cost you in rent. Giving up some comforts now can help you save money and enjoy better living conditions in the future. 
   
2. Improve your budgeting skills: Learning how to budget properly is key for ensuring that you have enough money to afford your monthly rent in addition to your other expenses. In addition, if you’re interested in owning rather than renting someday, you should budget money each month toward an eventual down payment, after prioritizing your basic needs and paying down existing debt.
   
3. Get a roommate: When you live with someone, you can split rent and utility costs with them. Just make sure you live with someone trustworthy who will always have their share of the rent on time. 
   
4. Look for units with included utilities: Utilities like electricity, water and oil/gas can add quite a bit to your monthly expenses. However, you may be able to save money by renting a place where utility costs are built into the rent, no matter how much you actually use. 
5. Shop around: Looking at several different places to rent before deciding on one can help you pick the one that’s most cost effective. 
6. Take care of your living space: If your rented apartment or house is clean and undamaged when you move out, you’ll be able to get your security deposit back in full. 
7. Get a rent-controlled unit: Some places have limits on how much landlords can charge for rent and on how much they can increase rent year-to-year. However, this is relatively rare, as only seven states currently have rent regulations in some cities.

Methodology 

To determine the most affordable cities for home renters, WalletHub compared a sample of 182 U.S. cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — using the median annual gross rent as a share of the median annual household income. 

Sources: Data used to create this ranking were collected as of March 18, 2026 from the U.S. Census Bureau.