Renters Spent 23.4% of their Incomes on Rent in April, Significantly Under the "30% Rule"

Rhea-AI Summary

According to Realtor.com's April Rent Report, U.S. renters are experiencing improved affordability, spending 23.4% of their income on rent, down from 24.7% in April 2024. The national median asking rent was $1,699, showing a slight $5 increase from March but remaining $60 below its August 2022 peak. Only five of the top 50 metros exceeded the 30% affordability threshold.

Miami emerged as the least affordable market, with rent 1.3 times above the affordable threshold, followed by New York, Los Angeles, Boston, and San Diego. Conversely, Oklahoma City ranked as the most affordable, with rent at just 55.6% of the maximum affordable level, followed by Austin, Columbus, Raleigh, and Minneapolis.

The rental market shows continued cooling, with rents down 1.7% year-over-year. While still 20.8% above pre-pandemic levels, this aligns with overall consumer price increases. An influx of new multifamily units has helped ease pricing pressure, with the national rental vacancy rate reaching 7.1% in Q1 2025.

Positive

• Renters are spending only 23.4% of income on rent, well below the 30% affordability threshold
• National rental vacancy rate increased to 7.1%, creating better conditions for renters
• Only 5 out of 50 major metros have rent burden above 30% of income
• Rent affordability improved in major markets, with San Diego showing the largest improvement (-3.9 percentage points)
• New multifamily construction is helping to ease rental price pressures

Negative

• Rents remain 20.8% above pre-pandemic levels
• Five major metros still exceed 30% rent-to-income threshold
• Miami renters face severe affordability challenges with rent 1.3x above affordable levels
• Some markets like New York and Los Angeles maintain very high rent burdens above 35% of income

Insights

Housing Market Economist

Rental market shows improving affordability with national rent-to-income ratio at 23.4%, below the 30% threshold in most major metros.

The latest Realtor.com data reveals a significant improvement in rental affordability nationwide, with the typical renter now spending 23.4% of income on housing, down from 24.7% a year ago. This positive trend is primarily driven by two factors: ongoing rental price moderation and rising household incomes.

The national median asking rent of $1,699 in April has stabilized $60 below its August 2022 peak, demonstrating the market's continued price correction after pandemic-era spikes. Only 5 of the 50 largest metros exceed the 30% rent-to-income threshold, concentrated in coastal markets like Miami (37.9%), New York (37.1%), and Los Angeles (35.6%).

What's particularly notable is how the multifamily construction boom is creating favorable conditions for renters. The national rental vacancy rate has increased to 7.1% in Q1 2025—the highest since Q3 2018—giving renters more negotiating power. This supply-demand shift explains why rents have declined for 21 consecutive months nationally.

The most affordable rental markets include Oklahoma City (where median rent is just 55.6% of maximum affordable rent), Austin, Columbus, Raleigh and Minneapolis—all markets with strong employment bases but more moderate housing costs than coastal hubs.

While nominal rents remain 20.8% above pre-pandemic levels, this increase merely tracks overall consumer price inflation during the same period. Importantly, rental growth has been significantly more restrained than the 54% surge in for-sale home prices per square foot, indicating that renting currently offers better relative value than buying in many markets.

• Miami, New York, Los Angeles, Boston and San Diego are the least affordable markets for renters while Oklahoma City, Okla; Austin, Texas; Columbus, Ohio; Raleigh N.C.; and Minneapolis, Minn., are the most affordable markets
• Surge in Multi-Family New Construction Has Continued to Ease Rent Rates and Improved Affordability

AUSTIN, Texas, May 14, 2025 /PRNewswire/ -- Across the U.S. rents are growing more affordable after pandemic era spikes. New data from the Realtor.com^® April Rent Report found that renters earning the typical household income devoted 23.4% of their income to lease a typical for-rent home, which was down from 24.7% in April 2024. While this varies metro to metro, only five of the top 50 U.S. metros had a rent share higher than 30% relative to the median household income.

Nationally in April the median asking rent settled at $1,699, showing a slight $5 increase from the previous month but remaining $60 below its August 2022 peak.

"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, 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." 

Oklahoma City, Okla., emerged as the most affordable rental market in April, where the median rent for a typical 0-2 bedroom unit represented only 55.6% of the estimated maximum affordable rent. Furthermore, significant affordability improvements observed in Southern markets like Miami, and Tampa, Fla., last year were followed by notable gains in Western metros this year, including San Diego, Denver, and Phoenix, Ariz.

Miami stood out as the least affordable rental market in April. The median rent for a standard 0-2 bedroom unit in Miami was 1.3 times greater than the estimated maximum affordable rent for a household with the median income. Miami is followed by major coastal and Southern California metros including New York, Los Angeles, Boston, and San Diego. Despite being the least affordable, the rent-to-income ratio in all five of these metros has declined compared to the same time last year, signaling a modest improvement in affordability across these cost-burdened markets.

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

Rank	Metros	April 2025 Median Rent	April 2025 Rent Share of Income	Percentage Point Changes (April 2025 vs. 2024	Maximum Affordable Rent at Current HH Income	April 2025 Rent vs. Max Affordable Rent (Ratio)
1	Miami-Fort Lauderdale-West Palm Beach, FL	$2,345	37.9 %	-3.1 ppt	$1,857	1.26
2	New York-Newark- Jersey City, NY-NJ	$2,936	37.1 %	-0.2 ppt	$2,374	1.24
3	Los Angeles-Long Beach-Anaheim, CA	$2,712	35.6 %	-1.9 ppt	$2,285	1.19
4	Boston-Cambridge- Newton, MA-NH	$2,968	32.6 %	-0.4 ppt	$2,732	1.09
5	San Diego-Chula Vista-Carlsbad, CA	$2,669	31.1 %	-3.9 ppt	$2,577	1.04

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

Rank	Metros	April 2025 Median Rent	April 2025 Rent Share of Income	Maximum Affordable Rent at Current HH Income	April 2025 Rent vs. Max Affordable Rent (Ratio)
1	Oklahoma City, OK	$994	16.7 %	$1,788	0.56
2	Austin-Round Rock- San Marcos, TX	$1,470	17.2 %	$2,560	0.57
3	Columbus, OH	$1,210	18.0 %	$2,012	0.60
4	Raleigh-Cary, NC	$1,489	18.2 %	$2,453	0.61
5	Minneapolis-St. Paul- Bloomington, MN-WI	$1,497	18.5 %	$2,421	0.62

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

Rank	Metros	April 2025 Median Rent	April 2025 Rent Share of Income	April 2024 Rent Share of Income	Percentage Point Changes (April 2025 vs. 2024)
1	San Diego-Chula Vista- Carlsbad, CA	$2,669	31.1 %	35.0 %	-3.9 ppt
2	Denver-Aurora-Centennial, CO	$1,771	19.9 %	23.2 %	-3.3 ppt
3	Jacksonville, FL	$1,512	22.2 %	25.3 %	-3.1 ppt
4	Miami-Fort Lauderdale-West Palm Beach, FL	$2,345	37.9 %	41.0 %	-3.1 ppt
5	Birmingham, AL	$1,173	19.6 %	22.2 %	-2.6 ppt
6	Phoenix-Mesa-Chandler, AZ	$1,495	20.5 %	22.8 %	-2.3 ppt

While April rents were $293 (20.8%) above pre-pandemic 2019 levels, this growth aligns with the rise in overall consumer prices during the same six-year period. This rent increase is significantly less than the 54% surge in the median price-per-square foot of for-sale home listings over the same timeframe. The relative steadiness in rents should translate into slower shelter inflation in the months ahead, alleviating one of the biggest recent drivers of a rising price level.

Nationally Rents Decline For Another Month
Across the 50 largest metropolitan areas, the median asking rent settled at $1,699, showing a slight $5 increase from the previous month but down $29 or 1.7% from last year, and $60 below the peak reached in August 2022. Rent prices experienced a seasonal increase in April, a common trend during the spring and summer months.

An ongoing influx of new multifamily units is slowing the pace of rental increases, thereby easing pricing pressure. Consequently, the national rental vacancy rate increased to 7.1% in the first quarter of the year—the highest it has been since the third quarter of 2018. This higher vacancy rate creates a more advantageous environment for renters this spring.

National Rents by Unit Size

Unit Size	Median Rent	Rent YoY	Consecutive Months of Decline	Total Decline from Peak	Rent Change - 6 Years
Overall	$1,699	-1.7 %	21	-3.4 %	20.8 %
Studio	$1,410	-1.9 %	20	-5.2 %	16.8 %
1-Bedroom	$1,578	-1.9 %	23	-4.8 %	19.1 %
2-Bedroom	$1,887	-1.7 %	23	-3.7 %	22.3 %

Top 50 Markets Rental Trends (Alphabetical Order)

	Median Asking Rent	YOY Change	April 2025 Rent to Income Share	April 2024 Rent to Income Share
Atlanta-Sandy Springs-Roswell, GA	$1,575	-3.80 %	21.5 %	23.4 %
Austin-Round Rock-San Marcos, TX	$1,470	-3.70 %	17.2 %	19.4 %
Baltimore-Columbia-Towson, MD	$1,815	0.80 %	22.9 %	23.1 %
Birmingham,  AL	$1,173	-5.30 %	19.6 %	22.2 %
Boston-Cambridge-Newton, MA-NH	$2,968	-0.10 %	32.6 %	33.0 %
Buffalo-Cheektowaga,  NY	NA	NA	NA	NA
Charlotte-Concord-Gastonia, NC-SC	$1,526	-0.30 %	22.5 %	23.7 %
Chicago-Naperville-Elgin,  IL-IN	$1,779	-2.80 %	24.6 %	25.8 %
Cincinnati, OH-KY-IN	$1,295	-3.70 %	19.4 %	21.1 %
Cleveland, OH	$1,157	-5.50 %	20.2 %	21.7 %
Columbus,  OH	$1,210	0.70 %	18.0 %	18.5 %
Dallas-Fort Worth-Arlington, TX	$1,463	-1.70 %	19.8 %	21.5 %
Denver-Aurora-Centennial,  CO	$1,771	-7.10 %	19.9 %	23.2 %
Detroit-Warren-Dearborn,  MI	$1,307	0.70 %	21.6 %	21.7 %
Hartford-West Hartford-East Hartford, CT	NA	NA	NA	NA
Houston-Pasadena-The Woodlands, TX	$1,355	-2.20 %	20.6 %	22.0 %
Indianapolis-Carmel-Greenwood, IN	$1,291	-2.60 %	19.4 %	20.8 %
Jacksonville,  FL	$1,512	-3.40 %	22.2 %	25.3 %
Kansas  City, MO-KS	$1,381	4.90 %	20.7 %	19.6 %
Las Vegas-Henderson-North Las Vegas, NV	$1,459	-2.40 %	24.1 %	26.1 %
Los Angeles-Long Beach-Anaheim, CA	$2,712	-3.00 %	35.6 %	37.5 %
Louisville/Jefferson County, KY-IN	$1,248	-1.30 %	20.6 %	21.8 %
Memphis, TN-MS-AR	$1,181	-2.80 %	21.2 %	23.2 %
Miami-Fort Lauderdale-West Palm Beach, FL	$2,345	-2.30 %	37.9 %	41.0 %
Milwaukee-Waukesha,  WI	$1,656	0.10 %	26.8 %	26.8 %
Minneapolis-St. Paul-Bloomington, MN-WI	$1,497	-2.30 %	18.5 %	19.5 %
Nashville-Davidson--Murfreesboro--Franklin,  TN	$1,530	-2.00 %	21.6 %	23.2 %
New Orleans-Metairie, LA	NA	NA	NA	NA
New York-Newark-Jersey City, NY-NJ	$2,936	2.30 %	37.1 %	37.3 %
Oklahoma City, OK	$994	-0.50 %	16.7 %	17.5 %
Orlando-Kissimmee-Sanford, FL	$1,688	-0.80 %	27.0 %	28.6 %
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	$1,754	-2.00 %	23.8 %	25.1 %
Phoenix-Mesa-Chandler,  AZ	$1,495	-4.40 %	20.5 %	22.8 %
Pittsburgh,  PA	$1,459	-1.00 %	24.0 %	24.6 %
Portland-Vancouver-Hillsboro, OR-WA	$1,668	-3.60 %	21.1 %	22.6 %
Providence-Warwick,RI-MA	NA	NA	NA	NA
Raleigh-Cary,  NC	$1,489	-3.50 %	18.2 %	20.1 %
Richmond, VA	$1,501	-0.20 %	20.6 %	22.1 %
Riverside-San Bernardino-Ontario, CA	$2,058	-4.00 %	28.7 %	30.7 %
Rochester, NY	NA	NA	NA	NA
Sacramento-Roseville-Folsom, CA	$1,869	-1.90 %	24.0 %	25.0 %
San Antonio-New Braunfels, TX	$1,239	-1.70 %	20.3 %	21.0 %
San Diego-Chula Vista-Carlsbad, CA	$2,669	-6.30 %	31.1 %	35.0 %
San Francisco-Oakland-Fremont, CA	$2,717	-2.40 %	24.4 %	26.1 %
San Jose-Sunnyvale-Santa Clara, CA	$3,362	1.60 %	25.8 %	25.9 %
Seattle-Tacoma-Bellevue, WA	$1,968	-1.70 %	20.8 %	21.6 %
St. Louis, MO-IL	$1,328	-0.40 %	20.0 %	21.3 %
Tampa-St. Petersburg-Clearwater, FL	$1,741	-0.50 %	28.6 %	30.2 %
Virginia Beach-Chesapeake-Norfolk, VA-NC	$1,490	-1.80 %	22.3 %	22.9 %
Washington-Arlington-Alexandria, DC-VA-MD-WV	$2,307	1.90 %	22.5 %	23.0 %

Methodology
Rental data as of April 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.

Rental affordability analysis: The affordable monthly rent is calculated by applying the 30% rule to the estimated 2025 monthly median household income nationwide ($7,263) across the 50 largest U.S. metros, on average) and in each metro. The monthly median household income is derived from the annual median household income data sourced from Claritas.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Mallory Micetich, press@realtor.com 

View original content:https://www.prnewswire.com/news-releases/renters-spent-23-4-of-their-incomes-on-rent-in-april-significantly-under-the-30-rule-302454556.html

SOURCE Realtor.com

FAQ

What is the current median asking rent in the US as of April 2025?

The national median asking rent in April 2025 was $1,699, showing a slight $5 increase from the previous month but down $29 (1.7%) from last year.

Which cities are the most affordable rental markets in 2025?

The most affordable rental markets are Oklahoma City (16.7% rent-to-income ratio), Austin (17.2%), Columbus (18.0%), Raleigh (18.2%), and Minneapolis (18.5%).

What percentage of income are US renters spending on rent in 2025?

US renters are spending 23.4% of their income on rent, down from 24.7% in April 2024, which is well below the 30% affordability threshold.

Which US cities have the highest rent burden in 2025?

The cities with the highest rent burden are Miami (37.9%), New York (37.1%), Los Angeles (35.6%), Boston (32.6%), and San Diego (31.1%).

How much have rents increased since pre-pandemic levels?

Rents are 20.8% ($293) above pre-pandemic 2019 levels, which aligns with the overall increase in consumer prices during the same period.