Affordability issues can be found across goods and services, and Americans have been hit especially hard with rising housing prices in recent years. According to the Urban Institute, the average sales price for a home is $486,000 in the U.S., while the average monthly rent is $1,890. But the real story behind those numbers depends on where you live, how much you make, and how the cost of buying compares to renting.
With that in mind, TheZebra.com looked at the 50 most populous American cities to find which are better for renting than buying. The researchers analyzed three main data points:
- Price-to-rent ratio: This takes the median home value and divides it by the median annualized rent for a two-bedroom home. The higher the ratio, the more cost-effective it is to rent than to buy.
- Price of rent compared to median income: This identifies cities where rent accounts for a lower portion of income, making it easier to afford other expenses.
- Home price-to-income ratio: This reveals the cities where home prices are highest relative to income.
Read on to discover the top cities for affordable renting and see if you recognize your own hometown or other favorite places.
1. Salt Lake City
Salt Lake City comes in as the top city in which to rent, largely due to its high price-to-rent ratio. That means home prices are significantly higher than rent prices, with median sales at $601,000. Plus, the average annual rent of $17,244 is low compared to the city's median household income of $104,059.
Salt Lake City by the numbers
- Price-to-rent ratio: 34.86
- Price of rent compared to median income: 16.57%
- Home price to income ratio: 7.7
2. Denver
Denver's climbing home prices have also soared past rental rates. The median home price is over $668,000, which is fairly high compared to the city's $112,231 median income. Rent, on the other hand, is more affordable and the average price accounts for just under 17% of income.
Denver by the numbers
- Price-to-rent ratio: 35.35
- Price of rent compared to median income: 16.89%
- Home price to income ratio: 5.9
3. Austin, Texas
Austin stands out on the list with one of the lowest rental rates compared to income. Annualized rent takes up just over 16% of the median household income, which is $101,583. That six-figure salary doesn't go as far when buying a place, since the median sales price is $485,400.
Austin by the numbers
- Price-to-rent ratio: 29.66
- Price of rent compared to median income: 16.11%
- Home price to income ratio: 5.7
4. Portland, Oregon
Portland's price-to-rent ratio is one of the highest on the list, emphasizing the affordability of rental prices compared to home sales. Rent averages $18,600 per year, while the median home sales price is over $611,000. Plus, the home price-to-income ratio is fairly high at 6.2.
Portland by the numbers
- Price-to-rent ratio: 32.85
- Price of rent compared to median income: 17.84%
- Home price to income ratio: 6.2
5. Las Vegas
The price-to-rent ratio in Las Vegas reveals a higher home-buying cost compared to renting. The median home price is just over $486,000, while the average rent for a two-bedroom apartment is just over $16,000 annually.
Las Vegas by the numbers
- Price-to-rent ratio: 30.02
- Price of rent compared to median income: 19.32%
- Home price to income ratio: 5.8
6. Raleigh, North Carolina
Raleigh is a great place for renting because the annualized average rent of $17,268 only accounts for about 16% of the median household income ($107,446). The price-to-rent ratio of 27% is also on the higher end, indicating a larger gap between home prices ($466,700) and rental rates.
Raleigh by the numbers
- Price-to-rent ratio: 27.03
- Price of rent compared to median income: 16.07%
- Home price to income ratio: 5
7. Phoenix (tied)
The price-to-rent ratio in Phoenix is nearly 29%, thanks to a high home sales price of $477,700 relative to annual rent prices of $16,488. The rent-to-income ratio in the city is also quite competitive at 17.57%.
Phoenix by the numbers
- Price-to-rent ratio: 28.97
- Price of rent compared to median income: 17.57%
- Home price to income ratio: 5.2
7. San Jose, California (tied)
San Jose ties with Phoenix and appears on the list largely because of the stark difference between housing prices and rental rates. The median home sales price is nearly $2.1 million, compared to an annualized rental rate of just under $50,000. Unsurprisingly, the city's home price-to-income ratio is also one of the highest, making it more appealing to rent for many residents.
San Jose by the numbers
- Price-to-rent ratio: 41.11
- Price of rent compared to median income: 28.42%
- Home price to income ratio: 11
9. Columbus, Ohio
Columbus has one of the lowest home prices in the top 10 ($363,100), but rental prices are even lower, averaging $12,624 per year. That helps Columbus rank in the number one spot when it comes to comparing rent to median income, which is just 14.46%.
Columbus by the numbers
- Price-to-rent ratio: 28.76
- Price of rent compared to median income: 14.46%
- Home price to income ratio: 3.9
10. Richmond, Virginia
Richmond home prices have jumped to a median of more than $460,000, widening the gap between buying and renting. The average rental price for a year is $16,320. That is a little pricey compared to income, however, accounting for just under 20% of annual earnings.
Richmond by the numbers
- Price-to-rent ratio: 28.21
- Price of rent compared to median income: 19.51%
- Home price to income ratio: 5.4
10 Cities Where It's Better to Buy
Here are ten cities where home prices may be more affordable than rental prices. Although these aren't necessarily budget locations, the numbers make buying more cost-effective than renting at current prices.
- Birmingham, Alabama
- Cleveland
- Detroit
- Buffalo, New York
- Indianapolis
- St. Louis
- Philadelphia
- Dallas and Providence, Rhode Island (tied)
- New York City
Insurance Tips the Scales, Too
Rent vs. buy math often stops at the mortgage payment, but that's only part of the bigger picture when it comes to buying a home. According to The Zebra's 2026 State of Insurance report, the average homeowner now pays $2,966 a year for home insurance, a cost that's trending upward alongside rising building material costs and severe weather risk.
Notably, none of the cities from the list above land among the priciest states for home insurance (a list topped by Florida, Oklahoma, Mississippi, Louisiana and Nebraska). That's one more reason these markets tend to favor buyers: Less disaster exposure generally means less risk of insurance eating into the savings a lower home price already offers.
Methodology
The Zebra used three data points to analyze the top 50 metropolitan statistical areas (MSAs) by population related to rental price, home prices, and income.
- Price-to-rent ratio (National Association of Realtors and Rent.com)
- Price of rent compared to median income: (Census Bureau and Rent.com)
- Home price to income ratio: (ConstructionCoverage.com)
This story was produced by TheZebra.com and reviewed and distributed by Stacker.
