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, Memphis, Tennessee ranks among the least affordable markets for renters.
The report found that 43% of Memphis 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
