Personal finance advisors and columnists often recommend that no more than 25% to 30% of your take-home pay should go to your landlord. Based on this general rule of thumb, if your income is $40,000 a year, your monthly rent should not exceed $1,000 a month.
But, thanks in part to a nationwide housing crunch, Americans would be hard pressed in many U.S. cities to keep their rental costs within this ideal limit. A limited supply of rental properties disproportionately hammers lower-income renters, who are often competing for a limited inventory of affordable housing options.
According to a 2022 joint report from the nonprofit housing trade association groups, National Apartment Association and the National Multifamily Housing Council, Miami-Fort Lauderdale-West Palm Beach ranks among the least affordable markets for renters.
The report found that 53% of Miami-Fort Lauderdale-West Palm Beach renters pay at least 35% of their income on housing – ranking the metro area one of only 16 among the 50 reviewed where more than 40% of renters are cost-burdened by housing.
All data in this story is from the 2022 report, U.S. Apartment Demand Through 2035, a 2022 report prepared by real estate consulting groups Hoyt Advisory Services and Eigen 10 Advisors.
CityHouseholds paying 35% or more of income on rent (%)Miami53Riverside48Los Angeles47New Orleans47San Diego47Orlando45Sacramento44Tampa44Charleston43Memphis43New York43Albuquerque42Las Vegas42Philadelphia41Portland41Virginia Beach41Atlanta40Baltimore40Denver40Detroit40Houston40Richmond40San Antonio40Birmingham-39Boston39Chicago39Jacksonville39Milwaukee39Indianapolis38Phoenix38St. Louis38Washington DC38Austin37Cleveland37Dallas-Ft Worth37Little Rock37Nashville37San Francisco37Seattle37Charlotte36Cincinnati36Minneapolis36Oklahoma City36San Jose36Boise City35Kansas City35Raleigh35Salt Lake City35Columbus34Louisville34
