As rental costs surge, particularly in urban areas where prices have skyrocketed over 50% in the last ten years, many cities are becoming increasingly unaffordable for residents. In response to this issue, the financial website WalletHub has evaluated 182 cities across the United States to determine which ones offer the best rental affordability.

Leading Affordable Cities

The analysis revealed that Bismarck, North Dakota is the most affordable city for renters, with only 15.3% of the median household income directed towards rent. This translates to an average annual salary of $69,989, with the median monthly rent set at approximately $1,023.

Close behind is Sioux Falls, South Dakota, where rent accounts for around 16% of median earnings. Cheyenne, Wyoming follows closely, requiring residents to allocate 16.1% of their salary to housing costs.

Additional Affordable Options

Cedar Rapids, Iowa, and Fargo, North Dakota also made the top five, showcasing the variety of affordable living options available in these regions.

Least Affordable Cities

Conversely, the analysis identifies the least affordable cities for renters. At the bottom of the list is Miami, Florida, where a staggering 33.48% of the median income is spent on rent. In Miami, the average yearly salary is reported to be $55,183, while the average monthly rent can reach around $2,950. Other cities in the bottom ranks include Glendale, California, Detroit, Michigan, New Haven, Connecticut, and Newark, New Jersey.

Financial Implications

According to WalletHub Analyst Chip Lupo, “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.” This disparity highlights a substantial financial advantage for renters in more affordable locales, allowing for greater potential to save or invest in future home ownership.