SmartAsset: How Much Money Do You Need to Make to Pay Rent in Large American Cities?
Rising inflation and high interest rates are making housing affordability a challenge for many Americans
Oct. 25, 2022
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According to SmartAsset, renters are spending an average of $1,800 or above for a two-bedroom apartment, nationwide. Housing costs in larger cities like New York and Los Angeles are getting hit even harder, making the cost of living less than comfortable. According to the Department of Housing and Urban Development (HUD), renters who spend more than 30% of their pre-tax income are cost-burdened by their housing. Instead, it recommends a rent-to-income ratio of less than 30%.
Using HUD’s guidelines, SmartAsset examined the income needed to pay rent in the 25 largest U.S. cities for a one- and two-bedroom apartment based on a rent-to-income ratio of 28%, which we set just below the standard threshold. Though we calculated income needed for both a one- and two-bedroom apartment, cities are ranked on the latter figure.
