Rising rent prices have not made the alternative to buying very accessible. In fact, according to recent data, there is nowhere in the U.S. where a minimum-wage worker can afford a two-bedroom apartment at the fair market value. A new report from WalletHub, however, makes it easier to determine the most affordable cities for renters.
Best Cities for Renters
1. Sioux Falls, S.D.
2. Cedar Rapids, Iowa
3. Overland Parks, Kan.
4. Fargo, N.D.
5. Lincoln, Neb.
6. Columbia, Md.
7. Bismarck, N.D.
8. El Paso, Texas
9. Lewiston, Maine
10. Nashua, N.H.
Worst Cities for Renters
1. Huntington, W.V.
2. Detroit, Mich.
3. Memphis, Tenn.
4. New Orleans, La.
5. San Bernardino, Calif.
6. Cleveland, Ohio
7. Jackson, Miss.
8. Stockton, Calif.
9. Newark, N.J.
10. Oakland, Calif
The report took the following factors into account:
– Rental market and affordability (including rental vacancy rate, historical price changes, rent-to-price ration and more).
– Quality of life (including city satisfaction ranking, job market, recreation friendliness and more)
Cedar Rapids, Iowa, had the highest rental affordability, with the lowest median annual gross rent divided by median annual household income at 15.7%.
Little Rock, Arkansas, had the highest rental vacancy rate, 14%—14 times higher than in Nashua, New Hampshire, the city with the lowest at 1%.
Newark, New Jersey, had the highest share of renter-occupied housing units at 77.7%—3.4 times higher than in Port St. Lucie, Florida, the city with the lowest at 23.1%.
Brownsville, Texas, has the lowest cost-of-living index at 74—2.7 times lower than in Honolulu and Pearl City, Hawaii, the cities with the highest at 199.
To view the full report, click here.