When it comes to rent, these are the cities most affordable for residents - See the list

article

A sign advertising units for rent is displayed outside a Manhattan building on April 11, 2024, in New York City. (Photo by Spencer Platt/Getty Images)

Over the past decade, rental prices have climbed by more than 50%, according to data from the Federal Reserve’s Consumer Price Index, tracking closely with a similar rise in home prices. 

Wage growth, however, has failed to keep pace, leaving many Americans struggling to afford housing.

In an effort to pinpoint where rent is most manageable, WalletHub analyzed median annual gross rent across more than 180 cities, comparing those figures with median household income in each location.

RELATED: Homebuyers are back despite rising rates — What to know

Methodology:

To identify the most affordable cities for renters, WalletHub analyzed 182 U.S. cities, including the 150 largest by population along with at least two of the most populous cities in each state. The comparison was based on median annual gross rent as a percentage of median household income.

What they're saying:

"In the most affordable cities for renters, the median cost of rent is as low as 15% of median income, compared with nearly 34% in the most expensive cities," Chip Lupo, a writer and analyst at WalletHub, said in a news release. "This gives people in the least expensive cities a clear financial advantage; the money they save on rent could go toward an emergency fund or savings for future homeownership."

RELATED: Here’s where rents are falling the most as US prices hit a four-year low

Most Affordable Cities

Dig deeper:

Bismarck, N.D.

Bismarck ranks as the most affordable city for renters, with median annual gross rent at about 15.3% of median income. That’s less than half the share paid by renters in Miami, where costs reach 33.8%. The city pairs relatively low rent — 16th-lowest among those analyzed — with the 80th-highest median income, driving its top ranking.

Sioux Falls, S.D.

Sioux Falls places second, with rent averaging about 16.4% of median income. While rents are only slightly higher than in Bismarck, ranking 20th-lowest nationwide, the city’s 86th-highest median income helps keep housing costs manageable.

RELATED: Zillow: US rent growth slows as affordability improves

Cedar Rapids, Iowa

Cedar Rapids ranks third, with residents spending roughly 16.5% of their income on rent. The city has the 10th-lowest rents in the country, and when paired with its median income ranking of 105th, results in one of the lowest rent-to-income ratios.

See the full list here.

Seven tips for saving money on rent

What you can do:

• Choose a smaller or simpler apartment: Larger units and added amenities typically come with higher rent. Cutting back now can help you save in the long run.
• Build a budget: A solid budget helps ensure you can cover rent and other expenses, while also setting aside money for future goals like a down payment.
• Consider a roommate: Splitting rent and utilities can significantly lower monthly costs — just be sure to live with someone reliable.
• Look for included utilities: Some rentals bundle utilities like water, electricity or gas into the rent, helping you avoid extra monthly costs.
• Compare options: Shopping around and reviewing multiple listings can help you find the most affordable choice.
• Maintain your space: Keeping your unit in good condition can help you recover your full security deposit when you move out.
• Seek rent-controlled units: In some areas, rent control laws limit increases, though these options are relatively limited nationwide.