Good news, America!
According to the U.S. Census Bureau, the median household income went up by nearly 2 percent last year. From Topeka to Tacoma, Americans are now earning around $61,372 per year. This is the third year in a row that our country's median household income has gone up, so go us!
Before we break out the bubbly to celebrate, consider how the cost of living fluctuates from state to state. The experts tell us that we should be spending no more than 30 percent of our gross income on housing costs, which means the average American should earmark around $1,534 for rent every month to live comfortably.
While that's easier said than done in some states, it's entirely doable in others. We've looked through RentPath data to determine the average combined rental price of two- and three-bedroom units in each state to identify which portions of the country you can comfortably live in if you're making the median yearly income.
Stay out of the red
Wondering where you can expect to spend less than 30 percent of your paycheck on rent? In the gray states on our map, rent will set you back less than $1,534 each month. Things get tighter in the red states, where rent generally costs more than the recommended 30 percent of your pre-tax income.
Breaking it down by region
Not ready to settle on a specific state just yet? We hear you. Consider the bigger picture first, and see how different regions stack up when it comes to comfortable living.
Northeast | Mid-Atlantic | Southeast | Midwest | Great Plains | Southwest | Northwest
Northeast average rental prices
If you're earning the country's median annual salary, you'll be hard-pressed to spend only 30 percent of your income ($1,534) on rent for a two- or three-bedroom apartment in the Northeast.
Maine comes close ($1,675) with New Hampshire not far behind ($1,737), but the only state in the region where you can expect to spend less than 30 percent of your income on housing is Vermont, where rent will only set you back about $1,304 per month.
Mid-Atlantic average rental prices
Surprisingly, the Mid-Atlantic is home to the states with both the highest and lowest average rent. Washington D.C. is deep in the red (no political affiliation intended) with an average rent of $3,782.
On the flip side, you can live large in the state of West Virginia, where rent will only set you back around $611 per month – less than 12 percent of the median income.
Southeast average rental prices
Home to nearly half of the country's fastest-growing cities, the Southeast also boasts some of America's most affordable housing. Only two of the region's nine states cross the 30-percent threshold for housing (Georgia and Florida). Still, at $1,804, Georgia's average combined two- and three-bedroom rent is just about 35 percent of the average income. Could be worse.
Midwest average rental prices
The majority of Midwestern states keep rent prices comfortable, with two-thirds of the region in the gray zone. Illinois is another story (thanks a lot, Chicago). Rent prices in this state are going to put a painful dent in your paycheck to the tune of $2,973 per month.
Great Plains average rental prices
Rent prices throughout the Great Plains are reasonable, with only one state (Colorado) dipping into the red. In both Wyoming and North Dakota, you can even find a two- or three-bedroom apartment for less than $1,000 per month.
Southwest average rental prices
Aside from Hawaii and California (no surprises here), you'll find several options for affordable living in the Southwest. Rent in New Mexico is the region's most affordable, coming in at $1,068, or just under 21 percent of the median national paycheck.
Texas toes the line a bit, with an average rent of $1,719 per month that stretches the comfort zone to roughly 34 percent of the median income. But with no state income tax, your paycheck will go a little further.
Northwest average rental prices
The Northwest is a mixed bag, with an equal amount of states in the red and gray. Right in the middle, Oregon's average rent runs a bit high at $2,272, while Alaska falls within the gray at $1,426. Bonus for both states: There's no sales tax.
Average rent across the country
Want to see the full list of how average rent prices stack up across all 50 states and the District of Columbia? We've compiled a table with the complete information, plus a look at the percentage of the national median income that will go to rent in each state.
| State | Average Rent | Percent of Median Income for Rent |
|---|---|---|
| Alabama | $1,292 | 25% |
| Alaska | $1,426 | 28% |
| Arizona | $1,308 | 26% |
| Arkansas | $920 | 18% |
| California | $3,294 | 64% |
| Colorado | $2,032 | 40% |
| Connecticut | $2,495 | 49% |
| Delaware | $1,564 | 31% |
| District of Columbia | $3,782 | 74% |
| Florida | $1,753 | 34% |
| Georgia | $1,804 | 35% |
| Hawaii | $3,520 | 69% |
| Idaho | $1,355 | 26% |
| Iowa | $1,034 | 20% |
| Illinois | $2,973 | 58% |
| Indiana | $1,194 | 23% |
| Kansas | $1,418 | 28% |
| Kentucky | $1,091 | 21% |
| Louisiana | $1,377 | 27% |
| Maine | $1,675 | 33% |
| Maryland | $1,707 | 33% |
| Massachusetts | $3,546 | 69% |
| Michigan | $1,294 | 25% |
| Minnesota | $2,143 | 42% |
| Mississippi | $1,229 | 24% |
| Missouri | $1,305 | 24% |
| Montana | $1,094 | 21% |
| Nebraska | $1,144 | 22% |
| Nevada | $1,452 | 28% |
| New Hampshire | $1,737 | 34% |
| New Jersey | $3,512 | 69% |
| New Mexico | $1,068 | 21% |
| New York | $3,385 | 66% |
| North Carolina | $1,494 | 29% |
| North Dakota | $976 | 19% |
| Ohio | $1,282 | 25% |
| Oklahoma | $1,042 | 20% |
| Oregon | $2,272 | 44% |
| Pennsylvania | $2,499 | 49% |
| Rhode Island | $1,980 | 39% |
| South Carolina | $1,308 | 26% |
| South Dakota | $1,282 | 25% |
| Tennessee | $1,382 | 27% |
| Texas | $1,719 | 34% |
| Utah | $1,525 | 30% |
| Vermont | $1,304 | 25% |
| Virginia | $1,944 | 38% |
| Washington | $2,601 | 51% |
| West Virginia | $611 | 12% |
| Wisconsin | $2,025 | 40% |
| Wyoming | $939 | 18% |
Source: RentPath internal data of the combined average of two- and three-bedroom apartment rental prices, August 2018.
The rent information included in this article is based on current rental property inventory on ApartmentGuide.com and is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
The post The Most Affordable States for the Average American Renter appeared first on Apartment Living Tips - Apartment Tips from ApartmentGuide.com.
from Apartment Living Tips – Apartment Tips from ApartmentGuide.com https://www.apartmentguide.com/blog/most-affordable-states-median-income/
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