Rental costs make up one of the biggest monthly expenses for most people. With the rising housing costs, finding affordable rent has become a cause of concern. However, rental costs are cheaper in some areas than in others. Rental costs are usually high in highly populated cities and commercial centers. You need to know where to look to get an affordable house to rent.
Also, when looking for a state with affordable rental costs, you should consider the average monthly income in that state. A popular rule is that what you spend on rent should not take more than thirty percent of what you earn monthly. Though this may vary, it should give an idea of what to look for. This article lists the states with the most affordable houses for rent.
Tips for Finding an Affordable Place to Rent
Before choosing a place to rent, you need to have a budget. This budget should be based on understanding your monthly income and expenses. Your monthly rent should not put an excessive drain on your monthly income. Also, you should consider the cost of living in that area. You can also check rental sites such as Rentola to find affordable houses for rent. This rental home search engine scours the web in search of all available properties and gathers them in one place.
Before moving into a new area, find out the average rental prices, utilities, transportation, and other important expenses. Examine different options in your area or nearby cities or states to find out how they compare in terms of cost, quality of living, and proximity to work or school. Also, you should check how stable the local economy is and the standard of living.
Check if there are enough jobs and the population of the area. Usually, rental costs are high in densely populated areas such as large cities and commercial hubs. To reduce your rental costs, you can bring in a roommate or housemate to share the costs with you.
Some landlords may give room for negotiation. This can also help to reduce your rental costs. Also, you can find out if you qualify for affordable housing programs. The government and several non-profits offer help with rental costs for low-income individuals. You may qualify for certain subsidies based on your income or service record. Here are the states with the most affordable houses for rent.
States with the Most Affordable Houses for Rent
North Dakota
The first state on the list is North Dakota. North Dakota has the country’s lowest median monthly rent, with a rent-to-income ratio of 25.5%. The median renter’s income in the state is around $39,868, making the rent-to-income ratio lower than in many other states. Since the beginning of the pandemic, rent has increased by around 0.5%, which is much lower than in other states. A two-bedroom in Cass County, North Dakota, has a median cost of around $999 per month.
Iowa
With a median monthly rent of $942 and a rent-to-income ratio of 30%, Iowa is one of the states with the most affordable houses for renters. It has the second cheapest median rent in the country. In Des Moines, a one-bedroom will cost around $788, while rent for a two-bedroom will cost around $982 monthly.
Minnesota
Minnesota has a median monthly rent of $1,103 and a rent-to-income ratio of 29.6%. Minnesota has the second-lowest rent-to-income ratio , with a median income of $44,761. Since the beginning of the COVID pandemic, the average rental costs have only increased slightly. In Hennepin County, the average monthly rate is around $1,277.
South Dakota
This state has a median monthly rent of $999 and a rent-to-income ratio of 30%. Though the median rental costs have increased by 13.1% year over year, the state remains one of the states with the most affordable houses for renters. In Sioux Falls, the median rent for a one-bedroom falls around $890, while the median rent for a two-bedroom costs around $1,085.
Nebraska
In Nebraska, the rent-to-income ratio is 30.9%, while the median monthly rent is $1,038. Since 2021, the median rent in Nebraska has increased by 8.2%. In Lincoln, the median monthly rental cost for a one-bedroom apartment is around $856, while a two-bedroom apartment has a median monthly price of $1,050.
Arkansas
Arkansas is also a state with affordable rental costs. The median monthly rent for a two-bedroom apartment in Arkansas is around $1,273. For a one-bedroom apartment, the median monthly rent is around $901.
