With homeownership remaining financially out of reach for many Americans, and others choosing to rent for lifestyle and other reasons, tenants are seeking the best value for their dollar. While rental prices vary widely from market-to-market, inflation has pushed prices 5.1% higher on average over the past year.
WalletHub set out to determine where renters can get the most for their rental dollar by comparing more than 180 rental markets 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,” said Chip Lupo, a WalletHub analyst. “You’ll also have access to robust laws that protect renters, such as limiting deposits to only a month or two of rent. 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.”
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Overall, the best rental market in the United States is Overland Park, Kansas, which boasts the highest average home square footage in the country at 2,809 square feet. It's the eighth-best rental affordability, with the average person spending about 17% of their annual income on rent, and only 18% of households paying more than 50% of their income for housing.
Other perks in the city include a strong school system and a fairly low crime rate, making it a great place for people who have or plan to have kids, according to the report.
Three Arizona markets followed – Scottsdale, Chandler and Gilbert. Scottsdale ranked highly due to its quality of life, availability of jobs and driver-friendly environment. It also has the fourth-best weather and sixth-best recreation options, although it is not the cheapest city in which to rent.
In Chandler, renters only spend about 21% of their annual income on rent and only around 18% of households spend more than half of their income on housing costs. Homes in Chandler have a generous average square footage, at 1,909 square feet, and there are plenty of new homes to choose from as more than 16% of homes were built between 2010 and 2023.
In fifth place is Bismarck, North Dakota. Rounding out the top 10 are Sioux Falls, South Dakota; Huntsville, Alabama; Peoria, Arizona; Lewiston, Maine; and Nashua, New Hampshire.
Meanwhile, at the bottom of the list were Memphis, Detroit, Cleveland, Tacoma, New Orleans, Newark, Jackson, Baton Rouge, San Bernardino and Huntington, West Virginia.
The five most affordable rental markets were Bismarck, North Dakota; Sioux Falls, South Dakota; Cheyenne, Wyoming; Cedar Rapids, Iowa; and Fargo, North Dakota. The least affordable are Hialeah, Florida; Miami; Newark; New Haven, Connecticut; and Detroit.
Rental vacancy rates were highest in Charleston, West Virginia; Augusta, Georgia; and Amarillo, Texas, and lowest in South Burlington, Vermont; Nashua, New Hampshire; and Lewiston, Maine.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
