Renter Affordability Improves as They Adhere to ‘30% Rule’

Following significant increases during the pandemic, rentals are becoming more affordable nationwide. Renters making the average household income used 23.4% of their income to lease a typical for-rent home, a decrease from 24.7% in April 2024, according to new data from the Realtor.com April Rent Report. Only five of the top 50 U.S. metros have a rent share greater than 30% in relation to the median household income, though this varies by metro.

The median asking rent nationwide in April was $1,699, up $5 from the previous month but still $60 below its peak in August 2022.

“One approach to measuring rental affordability is the 30% rule of thumb that says a household should spend no more than 30% of its gross income on housing costs. Using this measure, the typical for-rent home is affordable in most major U.S. metros for renters earning the typical household income,” said Danielle Hale, Chief Economist at Realtor.com. “Even in unaffordable markets, we saw improvement in April. Generally small but steady rent declines have chipped away at rental costs for nearly 3 years, and income growth has boosted household buying power. While this is good news, rent prices are still roughly 20% above pre-pandemic levels, and consumers have expressed concerns about their job security and financial situation in recent surveys.” 

Rental Markets With a Rental Burden Above 30% of Income (0-2 Bedrooms)–April 2025

In Which U.S. Markets Can Renters Find More Affordability?

The median rent for a typical apartment with 0–2 bedrooms was only 55.6% of the estimated maximum affordable rent in April, making Oklahoma City the most affordable rental market. Additionally, big increases in affordability were shown in Western metro areas this year, such as San Diego, Denver, and Phoenix, after notable improvements were seen in Southern markets like Miami and Tampa, FL, the previous year.

In April, the popular Miami metro was the rental market with the lowest prices. The estimated maximum feasible rent for a household with the median income was 1.3 times lower than the median rent for a typical Miami apartment with 0–2 bedrooms. Major coastal and Southern California metropolises, such as New York, Los Angeles, Boston, and San Diego, followed. Even though it is the most expensive, all five of these metros’ rent-to-income ratios have decreased from the same period last year, indicating a little improvement in affordability across these pricey regions.

Top 5 Most Affordable Rental Markets (0-2 Bedrooms)–April 2025

Although rents in April were $293 (20.8%) higher than they were prior to the pandemic in 2019, this increase is consistent with the rise in consumer prices over the same six-year period. Compared to the 54% increase in the median price-per-square-foot of for-sale property listings during the same period, this rent increase is much smaller. One of the main recent drivers of a rising price level should be lessened in the months to come as a result of the relative stability of rents.

The median asking rent in the 50 major metropolitan areas was $1,699, which was $60 less than the peak set in August 2022 and a $5 increase from the previous month. It was down $29 or 1.7% from the previous year. April saw a seasonal uptick in rent prices, which is typical of the spring and summer months.

The pace of rental rises is being slowed by a continuous infusion of new multifamily apartments, which is relieving pressure on prices. In Q1 of this year, the national rental vacancy rate rose to 7.1%, the highest level since the third quarter of 2018. This spring’s rental market is more favorable due to the increased vacancy rate.

Rental Markets With the Most Improved Affordability (0-2 Bedrooms)–April 2025

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