In a recent study, WalletHub has ranked Orlando as one of the least affordable cities for renters in the United States.
On Wednesday, April 16, WalletHub revealed its list of the American cities with the most affordable rent. The Federal Reserve’s Consumer Price Index shows that over the past decade, the cost of rent has risen by more than 50% while wages haven’t increased at the same rate.
To determine the cities with the most affordable rent, WalletHub analyzed the median annual gross rent in over 180 major cities, comparing that total to the median household income.
Chip Lupo, a WallatHub analyst, stated that in the most affordable cities for renters, the median cost of rent is as low as 15% of the median income. However, in the more expensive cities, residents spend more than 33% of their income on rent.
“This gives people in the least expensive cities a clear financial advantage,” said Lupo. “The money they save on rent could go toward their emergency fund or savings for future home ownership.”
WalletHub’s latest study ranked Orlando among the country’s worst cities for renters, with its residents spending an average of around 28.5% of their income on rent. As a result, the City Beautiful was listed as the 176th most affordable city for rent, placing Orlando just six spots from the bottom of the list.
Another city in Florida, Miami, took the last spot on the list, with its renters typically spending over 33% of their income on rent.
For comparison, the city of Bismarck in North Dakota took the top spot as the most affordable city in the U.S. for renters, with 15.34% of the median annual household income being used for rent. This is less than half of what Miami residents typically pay for rent.
According to WalletHub, Bismarck has the 20th-lowest median annual rent among the 182 cities in the company’s study, along with the 73rd-highest median income. This is why the city’s rent-to-income ratio is so low.
The company recommends several tips for saving money on rent, such as picking a smaller or less fancy apartment, improving your budgeting skills, getting a roommate, looking for units with included utilities, and shopping around at several different places to help find the most cost effective rental unit.
For more information, or to view the complete rankings, visit WalletHub’s Cities With the Most Affordable Rent webpage.
