Around 34% of U.S. households are rentals, a figure that’s climbing as people defer committing to buy or putting down roots while doing remote work. Despite this rise, rental prices are down year-on-year. However, they’ve fallen by an average of just $5 and remain 20.1% higher than in 2019. At the same time, real wages are up compared to inflation as of October 2024.

So, in theory, rent should be more affordable in many parts of America since housing authorities have long defined affordable housing as costing less than 30% of a household’s income. But it depends on where you live. So, CashNetUSA has created a calculator tool into which you can put your household income and expenses and receive a suggested figure for what “affordable rent” might be for you.

With rental affordability tied to income and market prices, where you live greatly affects your odds of keeping below that 30% water line. To give a clearer idea of how the peculiarities of the 2024 rental market and wage increases affect renters around the U.S., CashNetUSA has compared the average local rent and income levels in every ZIP code of the cities with a population of more than 100K.

We compared the average household incomes and annual rent costs in each ZIP code using U.S. Census data and Zillow’s Observed Rent Index (ZORI). Then, we ranked ZIP codes by affordability, the most affordable being the ZIP codes with the lowest rental costs as a percentage of local incomes. Finally, we calculated the percentage of rentals considered “affordable” in over 300 of America’s biggest cities, classifying rents lower than 30% of the average monthly salary as affordable.

Key Findings

• The average rent in Leawood 66224, Kansas, costs 10.57% of the local average income — the most affordable rent level of any U.S. ZIP code.
• Great Kills 10308 on Staten Island is New York City’s most affordable ZIP for rent, with the average rent costing 21.02% of the average income.
• Irvine and Carlsbad (both in California) are the only U.S. cities of over 100K population with zero homes available to rent for under 30% of the local average income.

The Kansas Neighborhoods Where Rent is Just 11% of Income

A pair of Kansas neighborhoods are the two most affordable ZIP codes in America for renting. In Leawood 66224, the average rent costs 10.57% of the local average household income of $172,829. Barely three miles away in Overland Park 66221, the average rent is $132 higher, but the average income is $7,208 higher, giving an affordability of 11.03%.

However, the neighborhoods are within a broader metropolitan area where affordable housing has become a hot issue. Both Leawood and Overland Park lack affordable housing for lower-wage renters, prompting both cities to consider reviewing their zoning codes to allow for smaller, more affordable units.

Among ZIP codes with an average household income below $100,000, Brandon 57005 in South Dakota has the most affordable rentals. The average household must spend 13.51% of its income to meet the average local rent. With house prices so high — and unevenly distributed — some South Dakota residents are deferring homebuying or even selling up to take advantage of more affordable rent levels.

“They’re going to bank on their parents leaving them a house, and that’s what a lot of people expect, and that’s how it used to be because the home went through the generations,” says Rapid City homebuyer Shaylynn Hurd. “But it’s not happening that much anymore.”

Long Island Neighborhood Has New York’s Most Affordable Rent

Next, we mapped each state’s most affordable ZIP code to rent based on the average local income. New York’s most affordable spot is East Northport 11731 in Suffolk County, Long Island, where the average rent costs 15.51% of the average local income — comfortably inside the recommended 30% cap.

One affordable housing project, Matinecock Court, finally got the go-ahead to break ground in 2023 after 44 years of legal challenges. These include an objection to the original plans to include single-room rentals. However, rental availability remains in short supply across Long Island. More than half of renters in Suffolk County spend more than 30% of their income on rent.

In Oregon, the 97221 ZIP code in Southwest Portland has the most affordable rent, at 18.66% of the local average income. This ZIP incorporates the Green Hills and Bridlemile areas, which are pleasant and quiet but well-connected suburban towns. The Portland Housing Bureau has administered an affordable “Inclusionary Housing” (IH) scheme since 2017. However, its shortcomings highlight the limits of basing affordability on a broad appraisal of local incomes, with some low-earners falling between the cracks.

“Even two people earning full-time minimum wage couldn’t afford maximum rent on a one-bedroom IH unit at 80% MFI [Median Family Income], though they would make too much to qualify for a one-bedroom IH unit at 60% MFI,” writes Kimberly Cortez for Portland’s Street Roots.

No Affordable Rentals in Top LA Neighborhoods

We identified the five most affordable ZIPs with a population of over 10,000 in 15 major American cities. In Los Angeles, we couldn’t find a single ZIP with affordable rent according to the 30% rule. The most affordable ZIP is 90045, east of Playa Del Rey in Westchester, where the average rent costs 30.92% of the local average income.

“Lots of people want to live here and housing supply is quite restrictive,” says Graham Beattie, associate professor and associate chair of economics at nearby Loyola Marymount University. “There’s only a certain amount of houses and that’s going to drive the price up. Part of that is just because housing is naturally restrictive, but part of that is because housing is being artificially restricted… There’s been attempts to build low-to-medium-rise apartment complexes in Westchester which have been blocked.”

In New York City, the most affordable ZIP is Great Kills 10308, Staten Island, where average rent is 21.02% of the local average income — significantly more affordable than second-placed Yorkville 10028 (28.28%). An apartment block in nearby St. George recently offered a lottery on ‘affordable’ rentals. However, with studios for $2,395, one-bedrooms for $2,655 and two-bedrooms for $3,835 a month, the prices account for the luxurious range of “lively modern amenities” on offer.

The Cities with the Most Affordable Rent Compared to Local and National Wages

Finally, this interactive table reveals the percentage of rental homes available at under 30% of the local and national average household incomes, respectively (and thus considered affordable), in 334 of America’s biggest cities. You can use the tabs and search fields to sort or narrow down the data.

Midland, Texas, has the highest proportion of affordable housing against local incomes, with 97.5% of rentals available below 30% of the local average income. The city maintains a reasonable cost of living compared to other Texas towns, while incomes are higher than state and national averages.

How to Save Money on Rent

While the major downside of renting is that you never get that money back, it is possible to minimize your monthly costs if you rent smartly. Here are five tips on how to save money when renting a home.

1. Be ready to pounce

Notice period notwithstanding, one advantage of renting over buying is the nimbleness with which you can change things. Whether you’re out of contract or just unhappy where you are, keep your proof of income, references and identity papers prepared so you can make a winning application when a well-priced rental becomes available

2. Use your close network

Everyone looking for a rental is using the same websites and seeing the same properties that you are. For a better chance of discovering a gem, put the word out among your friends and family and on your Facebook neighborhood groups. You may find something special that’s not yet gone to market.

3. Try an unfamiliar neighborhood

We tend to form fixed ideas of what it’s like to live in places that are further from the city center. But once you actually visit an area you’ve not been to before, you might discover that transport links, way of life and the general vibe are much more amenable than you’d imagined.

4. Wait until winter

Demand is lower in the winter, putting you in a better position to find and negotiate a cheaper place to live.

5. Use your leverage with the landlord

Re-letting a home is an expensive process for the landlord. Consider asking for a rent reduction or freeze when contract renewal time comes up. You could remind them that you’ve been a trouble-free tenant or even offer to do maintenance yourself if you have the know-how. Just tread carefully — some landlords see a new tenancy as a chance to make cosmetic improvements and charge a higher price to your replacement.

Some 15 million U.S. households pay more than 30% of their monthly income on rent. Not only can this make day-to-day expenses harder to meet, but it also prolongs the moment you can buy a place — and start making your money work for you. Finding a more affordable neighborhood to rent may bring that day closer.

METHODOLOGY

To find the most affordable ZIP codes to rent in the country, we compared the median household incomes by ZIP (according to the latest U.S. Census data) to the average annual rent costs by ZIP from Zillow (ZORI series). The ZIP codes where the average annual rental costs require the lowest percentage of median household income were considered the most affordable.

To find the percentage of rentals an individual could afford across America, we calculated how much 30% of the local average monthly salary accounts for across all U.S. cities with a population above 100,000 people. We then collected the total number of rentals available on Zillow.com in each city and isolated rentals below this 30% price threshold by city to calculate the percentage of affordable rentals in each city. We repeated the same process with the national average U.S. salary ($65,470) to calculate the percentage of affordable rentals for an individual earning the national average.

Notes:

• We considered figures below 30% of gross income as the standard affordable rent outlay.
• This analysis was completed in October 2024.