Study: Albany among 50 most affordable rental markets

A new study found that Albany will be the No. 48 most affordable rental market in the U.S. in 2020, with residents having 70.6% of their salary left over after rent. The national average is 60%.With most financial experts saying a person should limit housing costs to less than one-third of their income, finding an affordable place to live is a huge concern.

RefiGuide.org released a study on the Most Affordable Rental Markets in America for 2020 after analyzing 400 cities using the latest data from the Bureau of Labor Statistics on median annual wages and rental value data from real estate marketplace Zillow. Here are key national findings: The 10 most affordable markets are: Danville, Bloomington, Johnstown (Penn.), Kokomo (Ind.), Portsmouth (N.H.), Springfield, Carbondale-Marion, Jefferson City (Mo.), Saginaw (Mich.) and Springfield (Ohio).The Midwest was the most well-represented region, accounting for 29 of the 50 most affordable markets. Only one Western city was on the list, while the South had 15 and the Northeast five.Illinois appears on the list more times than any other state with its six cities, but Ohio was home to five of the cities, while Arkansas, Iowa, Michigan, Missouri, Pennsylvania and Wisconsin all had three. Most financial experts advise the average person to spend no more than 30% of their income on housing. The likelihood of making that happen, though, depends largely on where you live. That’s because for people in dozens of American cities, the typical person sees nearly all of their income gobbled up by rent.

According to RefiGuide.org’s analysis of recent Zillow rental value data and wage figures published by the U.S. Bureau of Labor Statistics for nearly 400 U.S. cities, the average resident of these cities has about 60% of their income left after rent.

But for people living in dozens of U.S. cities, low rent should help give them some financial flexibility and leave them more money to spend after they’ve covered rental costs, and for people living in the 50 most affordable American rental markets, having 70% or more of their income left after rent is commonplace.

In fact, in each of the 50 markets identified as the most affordable, the typical person spends about 27% of their income on rent. The most affordable market, according to analysis, is Danville, Ill., where the average person can expect to have more than 80% of their paycheck left after paying rent. Granted, these figures reflect the situation for an individual or a single-income family, which may not be the most common situation. Still, analysis indicates that the 50 markets on the list of most affordable are likely to be realistically within range for most people.

Here’s a brief summary of the study’s findings:

— 8 of the 10 most expensive rental markets are in the Midwest, and four of the 10 are in one state — Illinois;

— Only one Western market, Sierra Vista-Douglas, Ariz., appears among the 50 most affordable markets;

— The most affordable Southern rental market is Pine Bluff, Ark., where the typical person spends about 74% of their income on rent;

A Closer Look: Five Most Affordable Markets.

Here’s a look at all the figures related to the five most affordable housing markets, including the median annual wage for full-time workers, the median monthly and annual rent costs and the percentage and amount of income left after rent:

No. 5 Portsmouth, N.H.-Maine;

♦ Median Annual Wage: $43,970;

♦ Median Monthly Rent: $878;

♦ Median Annual Rent: $10,536;

♦ Percentage of Income Left After Rent:76.0%;

♦ Amount of Income Left After Rent: $33,434;

♦ No. 4 Kokomo, Ind.;

♦ Median Annual Wage: $37,920;

♦ Median Monthly Rent: $754;

♦ Median Annual Rent: $9,048;

♦ Percentage of Income Left After Rent: 76.1%;

♦ Amount of Income Left After Rent: $28,872;

♦ No. 3 Johnstown, Penn.;

♦ Median Annual Wage: $32,140;

♦ Median Monthly Rent: $630;

♦ Median Annual Rent: $7,560;

♦ Percentage of Income Left After Rent: 76.5%;

♦ Amount of Income Left After Rent: $24,580;

♦ No. 2 Bloomington, Ill.;

♦ Median Annual Wage: $40,620;

♦ Median Monthly Rent: $731;

♦ Median Annual Rent: $8,772;

♦ Percentage of Income Left After Rent: 78.4%;

♦ Amount of Income Left After Rent: $31,848;

♦ No. 1 Danville, Ill.;

♦ Median Annual Wage: $35,590;

♦ Median Monthly Rent: $564;

♦ Median Annual Rent: $6,768;

♦ Percentage of Income Left After Rent: 81.0%; and

♦ Amount of Income Left After Rent: $28,822.

For many Americans, choosing where to live isn’t as simple as picking the place that seems the most affordable. But for young people just starting out in their lives or those looking for a change, selecting from one of these communities could be a wise decision.

Bryan Dornan is a financial journalist and currently serves as chief editor of RefiGuide.org. Dornan has worked in the mortgage industry for more than 20 years and has a wealth of experience in providing mortgage clients with the highest level of service in the industry. His focus is to promote affordable home-ownership to consumers across the United States. He also writes for RealtyTimes, Patch, Medium and other national publications. Find him on Twitter and Muckrack.

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