From Surpise to Plano, 10 Most Affordable US Cities for Renters

Renting is still a smarter choice

While soaring rent costs have been a major issue for low- and middle-income families, it still is a smarter option for high-income renters. According to a recent study conducted by RentCafe, about 2.6 million high earners continue to rent homes instead of buying one. The home prices in the top cities make it obvious for people to rent properties as it is more economical. However, a big part of deciding where to live as a renter revolves around the costs of necessities in the city. Thus, RentCafe looked at disposable income left after paying rent and the costs of necessities in US cities. Here are the 10 most value-for-money cities for renters in the US.

1. Sunnyvale, California

A part of Silicon Valley, Sunnyvale is America’s top city where renters can get the most value for their money by renting. As per the report, renters here earn roughly $146,000 per year, which is triple the median wage in the US. However, the monthly rent of $3,000 is only 76% higher than the average and the cost of necessities is only 28% above the national benchmark. After paying rent, Sunnyvale renters earning at par with the median income would be able to cover 24 times the value of basic utilities in the city (phone and energy bills).

2. Surprise, Arizona

Surprise in the Phoenix metro area is home to several tech and healthcare giants. As a result, renters in the city enjoy the seventh-highest annual median income in the country standing at $76,623, according to Data USA. Meanwhile, the average rent was just in line with the national benchmark. Thus, renters pay an average rent of just $1,781 and cover about $1,004 monthly cost for basic utilities. This leaves them with plenty of discretionary income to spend on other things.

3. Arlington, Virginia

Renters in Arlintog make about $102,710 as a yearly wage and pay an average monthly rent of nearly $2,500. Further, renters pay about $1,152 for the other monthly expenses and necessities, which is close to the national average. Healthcare costs about $408 and utilities cost about $362 which took up the largest share of the total price for essential items. While the costs just barely keep up with the national average, renters in Arlington make the third-highest annual income out of the 189 cities RentCafe analyzed.

4. Bethesda, Maryland

The yearly income of renters in Bethesda stood at about $99,315, which is the fourth-highest among cities in RentCafe’s report. On the other hand, renters pay an average monthly rent of $2,684 and basic living expenses of $1,093, which is just at par with the firm's calculated national average. Further, the utilities, energy, and phone bills, which cost $404 per month, made up nearly half of the cost of basic needs in Bethesda. Thus, renters have plenty of room with a high discretionary income.

5. Alexandria, Virginia

Another DC suburb, Alexandria offers a mix of federal agencies, corporate offices, and tourism. In the report, it ranked fifth among the cities where renters could easily hit a balance between income and expenses. The city offers the sixth-highest annual income of $89,845, which is more than enough to cover the $2,068 monthly rent and the $1,174 total price for necessities. Thus, the high discretional income of renters working in Alexandria allows them to maintain a higher standard of living.

6. Westminster, Maryland

The Denver suburb of Westminster, offers a median annual wage of $75,841, to $79,000. Meanwhile, the average rent in the city comes out to be $1,864 and the cost of necessities per month comes out to be less than $1,000. Thus, Westminster offers one of the lowest prices for essential living items and services in the country which allows renters working in the city to get the most value. Further, easy access throughout the Denver metro is one of the key benefits of living in Westminster.

7. Scottsdale, Arizona

Located in the Phoenix metro area, Scottsdale’s renters earn a median annual income of $82,865 which is the eighth-highest in the U.S. Meanwhile the monthly price of essential items and services stood at $1,087, which was just in line with the national average. Further, the average monthly rent in the city stood just above the national average at $2,084. Thus, for renters living in the city, only a small portion of their income goes towards rent and expenses, leaving them with plenty of money to spend at their discretion.

8. Round Rock, Texas

Renters in Round Rock provide access to one of the nation’s tech hubs, Austin. Thus, the annual income of renters living in the city revolved around $68,517 which is 39% higher than the national median income. Meanwhile, the average monthly rent sits below the national benchmark at $1,574, and the key expenses for basic necessities such as utilities, food, healthcare, and transportation, were just slightly below average at $1,058. This leaves renters with a large chunk of their income to spend as per their choice.

9. Plano, Texas

The renters’ income in Plano stood at $76,824, which was the 11th highest. Meanwhile, the price for necessities such as rent was close to the national benchmark at $1,786, but the cost of basic living expenses was slightly above the average at $1,204. However, in contrast to the median income of renters in the city, the costs come out to be fairly low, allowing them to maintain a high standard of living and good financial health.

10. Broken Arrow, Oklahoma

The median annual income of renters in Broken Arrow which is $54,594 allows them to cover their rent of $1,117 about four times a month. While the rent is below the national average, Broken Arrow is also one of the most affordable cities with basic living expenses of $1,016. This leaves renters with a large chunk of discretional income which they can save, invest, or spend on things they value.