As the housing market has continued to recover since 2009, rental rates have been steadily rising. One of the main contributing factors is the dwindling supply of homes on the market as would-be sellers are electing to stay in their homes longer.
As home prices continue to rise, many prospective buyers are getting priced out and are forced to stay in the rental market longer. This in turn drives up rental prices, drives down vacancy rates, and can even drive up rental insurance. Consequently, rent as a percentage of income has increased to 29.2% in Q2 2017, up from the 1985-2000 historic rate of 25.8%.
In general, those in big cities have been affected the most, with average rental prices routinely topping $1,000/month for a 1 bedroom apartment. With that in mind, ConsumersAdvocate.org decided to see which big cities still offered reasonable rental prices.
Methodology
To determine which U.S. cities had the cheapest rent, researchers at ConsumersAdvocate.org used data from the American Community Survey’s 2016 1-year estimates to see which cities with populations over 500k had the lowest median gross rent for a 1 bedroom apartment.
The American Community Survey defines “median gross rent” as “as the rent contract plus the estimated average monthly cost of utilities and fuels.”
Photo Credit: Wikimedia
20. Nashville, Tennessee
- Median Rent for 1 Bedroom: $865
- Median Rent (all unit sizes): $979
- Median Rent as a % of Income (all unit sizes): 28.4%
- Population: 660,393
Photo Credit: Wikimedia
19. Houston, Texas
- Median Rent for 1 Bedroom: $855
- Median Rent (all unit sizes): $952
- Median Rent as a % of Income (all unit sizes): 30.9%
- Population: 2,304,388
Photo Credit: Wikimedia
18. Dallas, Texas
- Median Rent for 1 Bedroom: $847
- Median Rent (all unit sizes): $935
- Median Rent as a % of Income (all unit sizes): 28.4%
- Population: 1,317,942
Photo Credit: Wikimedia
17. Fort Worth, Texas
- Median Rent for 1 Bedroom: $824
- Median Rent (all unit sizes): $974
- Median Rent as a % of Income (all unit sizes): 29.1%
- Population: 855,897
Photo Credit: GoodFreePhotos
16. Baltimore, Maryland
- Median Rent for 1 Bedroom: $812
- Median Rent (all unit sizes): $999
- Median Rent as a % of Income (all unit sizes): 29.6%
- Population: 614,664
Photo Credit: Wikimedia
15. San Antonio, Texas
- Median Rent for 1 Bedroom: $797
- Median Rent (all unit sizes): $924
- Median Rent as a % of Income (all unit sizes): 29.8%
- Population: 1,492,494
Photo Credit: Wikimedia
14. Phoenix, Arizona
- Median Rent for 1 Bedroom: $768
- Median Rent (all unit sizes): $960
- Median Rent as a % of Income (all unit sizes): 29.4%
- Population: 1,615,041
Photo Credit: Wikimedia
13. Jacksonville, Florida
- Median Rent for 1 Bedroom: $766
- Median Rent (all unit sizes): $980
- Median Rent as a % of Income (all unit sizes): 29%
- Population: 880,623
Photo Credit: Wikimedia
12. Columbus, Ohio
- Median Rent for 1 Bedroom: $720
- Median Rent (all unit sizes): $882
- Median Rent as a % of Income (all unit sizes): 28.1%
- Population: 862,643
Photo Credit: Wikimedia
11. Las Vegas, Nevada
- Median Rent for 1 Bedroom: $713
- Median Rent (all unit sizes): $996
- Median Rent as a % of Income (all unit sizes): 32.5%
- Population: 632,916
Photo Credit: Wikimedia
10. Memphis, Tennessee
- Median Rent for 1 Bedroom: $706
- Median Rent (all unit sizes): $857
- Median Rent as a % of Income (all unit sizes): 33%
- Population: 652,752
Photo Credit: Wikimedia
9. Fresno, California
- Median Rent for 1 Bedroom: $702
- Median Rent (all unit sizes): $913
- Median Rent as a % of Income (all unit sizes): 36.8%
- Population: 522,021
Photo Credit: pxhere
8. Indianapolis, Indiana
- Median Rent for 1 Bedroom: $699
- Median Rent (all unit sizes): $835
- Median Rent as a % of Income (all unit sizes): 30.9%
- Population: 852,506
Photo Credit: Wikimedia
7. Albuquerque, New Mexico
- Median Rent for 1 Bedroom: $677
- Median Rent (all unit sizes): $809
- Median Rent as a % of Income (all unit sizes): 31.6%
- Population: 559,270
Photo Credit: Wikimedia
6. Oklahoma City, Oklahoma
- Median Rent for 1 Bedroom: $662
- Median Rent (all unit sizes): $802
- Median Rent as a % of Income (all unit sizes): 27.6%
- Population: 638,311
Photo Credit: Wikimedia
5. Milwaukee City, Wisconsin
- Median Rent for 1 Bedroom: $654
- Median Rent (all unit sizes): $809
- Median Rent as a % of Income (all unit sizes): 32%
- Population: 595,070
Photo Credit: Wikimedia
4. El Paso, Texas
- Median Rent for 1 Bedroom: $637
- Median Rent (all unit sizes): $778
- Median Rent as a % of Income (all unit sizes): 30.3%
- Population: 683,088
Photo Credit: Wikimedia
3. Louisville, Kentucky
- Median Rent for 1 Bedroom: $626
- Median Rent (all unit sizes): $785
- Median Rent as a % of Income (all unit sizes): 28.3%
- Population: 616,261
Photo Credit: Wikimedia
2. Tucson, Arizona
- Median Rent for 1 Bedroom: $606
- Median Rent (all unit sizes): $783
- Median Rent as a % of Income (all unit sizes): 32.7%
- Population: 530,690
Photo Credit: Wikimedia
1. Detroit, Michigan
- Median Rent for 1 Bedroom: $530
- Median Rent (all unit sizes): $771
- Median Rent as a % of Income (all unit sizes): 36.5%
- Population: 672,829