Cities With the Most Affordable Rent

The cost of rent has risen by more than 50% over the past 10 years, according to the Federal Reserve’s Consumer Price Index, which mirrors the way home prices have also gone up tremendously during that time. Unfortunately, wageshaven’t increased at the same rate, making it harder and harder for people to afford housing. 

To determine the cities where rent is the most affordable, WalletHub analyzed the median annual gross rent in more than 180 cities, then compared it to the median household income. 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 33.5% of their income.

Bismarck has the 20th-lowest median annual rent among the more than 180 cities in our study, but the 73rd-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% 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 21st-cheapest in the nation. It also has the 88th-highest median annual income among the more than 180 cities in our study.

Cheyenne, WY

Cheyenne, WY, is the city with the third-most affordable rent. Based on the median annual gross rent and median annual income, Cheyenne residents can expect to spend around 16.1% of their earnings on rent. 

When you look at dollar amounts, Cheyenne’s rent is the 30th-cheapest in the country, but when you combine that with the fact that the city has the 76th-highest median income, it leads to the third-lowest ratio of rent to income.

 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.