This unassuming Midwestern city is the most affordable for renters
In an era where housing costs are outpacing wage growth, finding a city where rent doesn’t devour a paycheck is increasingly rare.
Over the past decade, the Federal Reserve’s Consumer Price Index shows rent has surged by more than 50%, tracking closely with skyrocketing home prices.
Yet, stagnant wages have left many struggling to keep up, pushing affordable housing out of reach for a growing number of Americans.
To identify cities where renters can still find financial relief, WalletHub, a personal-finance platform, examined median annual gross rent across more than 180 US cities and compared it to median household income.
The resulting report ranks cities by their rent-to-income ratio, spotlighting places where housing costs take the smallest bite out of earnings.
“In the most affordable cities for renters, the median cost of rent is as low as 15% of the median income, compared to more than 33% in the most expensive cities,” said Chip Lupo, a WalletHub analyst.
“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.”
Topping the list is Bismarck, North Dakota, where renters spend just 15.34% of their median income on rent.
While the city boasts the 20th-lowest median annual rent among the studied cities, its 73rd-highest median income creates a favorable balance, making housing costs remarkably manageable.
For perspective, Miami renters face a stark contrast, dedicating 33.48% of their income to rent — more than double Bismarck’s share.
Sioux Falls, South Dakota, claims the second spot, with rent consuming 15.95% of median income.
Its median annual rent ranks as the 21st-cheapest nationwide, paired with the 88th-highest median income, securing its place as a renter-friendly hub.
Cheyenne, Wyoming, rounds out the top three, with renters allocating 16.09% of their earnings to housing.
The city’s rent is the 30th-cheapest in the country, and its 76th-highest median income helps maintain a low rent-to-income ratio.
The top 10 list includes cities like Cedar Rapids, Iowa (16.36%); Fargo, North Dakota (16.65%); and Charleston, West Virginia (16.70%) — where renters benefit from low housing costs relative to income.
Western and Midwestern cities dominate, with Casper, Wyoming (16.72%); Overland Park, Kansas (16.81%); and Alaska’s Juneau (17.45%) and Anchorage (17.76%) also making the cut.
Then there are the high-cost outliers.
At the other end of the spectrum, cities like Miami (33.48%); Newark, New Jersey (32.96%); and New Haven, Connecticut (32.18%) burden renters with costs that eat up nearly a third of their income.
Detroit (31.35%); Glendale, California (29.84%); and Bridgeport, Connecticut (29.80%) also rank among the least affordable, highlighting the financial strain in urban centers with high rents and lower median incomes.
