The Cities with the Cheapest Rent in the USA

Discover the top 10 cities in the USA with the cheapest rent. This article provides a comprehensive guide to affordable living in major cities across the country. Learn about average rental costs, the economic factors influencing these prices, and how these cities compare to the national average.

An overview of the current rental market in the USA

The rental market across the United States has seen considerable fluctuations and trends over the past several years. As of 2023, rental prices nationwide have reached record highs, squeezing budgets for many Americans seeking housing. Median asking rents in the 50 largest metropolitan areas now stand at $1807 per month. 

However, significant variation exists between markets. While coastal cities remain the most expensive, many smaller Midwest and Southern cities offer substantially cheaper rents. 

Identifying affordable rental markets has become increasingly important for budget-conscious renters aiming to cut costs. For individuals and families hoping to minimize housing costs, locating affordable cities enables major savings and allows them to allocate more funds to other living expenses or financial goals. 

Additionally, cheaper rental cities tend to have a lower overall cost of living. Whether renting short-term while saving for a house or seeking long-term, affordable rentals, prospective tenants are motivated to understand the cheapest markets.

Factors Affecting Rental Affordability

Several interplaying economic, demographic, and geographic factors impact the relative rental prices from one city to another. Key influences include:

• Job market strength. As employment opportunities increase, cities and metro areas tend to draw more people, which increases demand for housing. San Francisco and New York, major tech hubs, have the highest rents due to their thriving job markets.
• Population density. More densely populated areas generally have higher rents due to land scarcity and higher demand. Outer suburbs tend to offer more affordability.
• Home values. Markets with higher home prices lead households to stay renting longer, elevating demand for rentals. Coastal cities again lead here.
• Income levels. Rental prices tend to align with average local incomes. Higher-earning cities equal higher rents.
• Land availability/constraints. Cities with geographic restrictions on new construction experience slower supply growth and higher rents.
• Regulatory burdens. Local regulations and zoning that reduce housing development further limit supply expansion in strong markets.
• Universities. Every college town has to deal with unequal demand spikes from student populations that can access student loans, parental support, and financial aid.
• Amenities. Cities with lots of entertainment, culture, and amenities typically have higher prices. People will pay more for “happening” cities.

Economic and demographic considerations

Although supply and demand economics play a major role in the aforementioned factors, broader economic conditions also influence rental rate cycles. High unemployment rates during recessions impede the growth of rental rates and incomes. Changes in population composition also matter. Over the past ten years, demand has increased due to baby boomers downsizing into rentals and millennials delaying the purchase of a home. Over time, an increasing number of elderly millennials will become homeowners. However, considering the demographic forces, rental demand still seems set to grow shortly.

Methodology for Identifying Affordable Cities

This analysis of rental affordability across over 50 major U.S. cities incorporated both quantitative data and qualitative insights. Primary quantitative data came from current median one-bedroom rental rates from sites like Zumper and ApartmentList, capturing real-time markets. Cost of living data from NerdWallet provided additional affordability context. 

The primary criterion concerned the current median one-bedroom rental prices in each city. Small towns fell below the population threshold, whereas cities needed mid-size or larger populations (more than 300 000) and reasonably robust economies to offer job opportunities. Strong rental options and livable amenities are also taken into account when making assessments.

Top 10 U.S. Cities with the Cheapest Rent

Among major metro areas across the United States, the following cities currently offer the most affordable one-bedroom median rental rates:

Regional Analysis

The regional variation in rental affordability across the United States stands out starkly, with mid-size cities across the Midwest, Southwest, South, and Texas offering the most reasonably priced options.

The Midwest proves exceptionally affordable, home to many top inexpensive markets. Slower population growth and sprawling metro footprints create ample supply and stabilized pricing. Cities like Indianapolis, Cincinnati, St. Louis, and Kansas City offer cheap rents, blending urban amenities with Midwestern hospitality.

Texas also fares well rent-wise, with metro areas like San Antonio providing almost unparalleled value. Major metro suburbs around Dallas and Houston provide additional affordable options. Steady in-migration and pro-development policies help prevent excessive price spikes.

The South also remains relatively affordable, with cities like Louisville, Birmingham, Oklahoma City, and larger Atlanta representing housing bargains compared to their coastal peers. Suburbs persist as targets for further affordability.

Highlighting the Midwest, South, and other affordable regions

Currently, the Midwest, South, and Texas lead as affordable regions, while the Northeast and West Coast see the highest rents, led by New York and California. The Pacific Northwest also comes at a premium. For major savings, the U.S. heartland delivers ample jobs, culture, entertainment, and amenities while maintaining budgets far below their coastal counterparts.

However, affordable neighborhoods do exist in some expensive metro areas with meaningfully lower rents despite high regional prices. While unable to match mid-size city deals, these localized bargains offer partial cost relief.

In Los Angeles, neighborhoods like Arlington Heights, West Adams, and Mid City offer $400–$700 cheaper rents while retaining reasonable access. New York has differential neighborhoods in Upper Manhattan, including Hamilton Heights, Washington Heights, and Inwood, with $600–800 discounted rents.

Miami shows substantive value in spots like Little Haiti and Allapattah, where rents run hundreds of dollars cheaper than pricier Miami Beach or Brickell. San Francisco pockets like Excelsior, Ingleside, and Portola place rents $600 or more lower at effectively equivalent living standards. 

To quantify, median one-bedroom asking rents across LA currently run around $2750, with affordable areas instead ranging from $1900 to $2200—significantly cheaper. In New York, the common range is $3800, with affordable areas reaching $2900–$3200—once again, major savings. Similar neighborhood discounts in Miami and San Francisco run 25–35% less than typical area rents.