Rent-to-Income Ratio by State (2026 Data)
The rent-to-income ratio tells you how much of a typical paycheck goes to rent in a given place. Using U.S. Census data, we ranked all 50 states and Washington, DC by median gross rent as a share of median household income. Florida is the most rent-burdened state at 28.0%, while North Dakota is the least at 15.1%. The full ranked table is below.
This article is for renters comparing where their money goes furthest, and for beginner investors reading rent burden as a demand signal. Every figure comes from the U.S. Census American Community Survey, 2024 estimates, so you can reproduce it yourself.
Key Takeaways
- Florida (28.0%), Nevada (25.3%), and California (25.2%) are the most rent-burdened states at the median.
- North Dakota (15.1%), Iowa (15.6%), and South Dakota (15.6%) are the least.
- This measures median rent against median income, a market-level read, not any single household's budget.
- HUD considers a household "cost-burdened" when housing exceeds 30% of income, and "severely burdened" above 50%.
- For investors, a high ratio signals strong rental demand but also a ceiling on how much more rent the market can bear.
Table of contents
- How we measured it
- Rent-to-income ratio by state: the full ranking
- What the data shows
- What it means for a first-time investor
- The limits of this data
- FAQ
How we measured it
The ratio is simple: annual median gross rent divided by median household income. Gross rent is the Census measure that includes contract rent plus tenant-paid utilities. Median household income is all income for the typical household, not just renters. We used the Census ACS 2024 estimates for both, at the state level.
One honest note up front: because this compares median rent to median household income (which includes homeowners, who tend to earn more), it understates the burden on renters specifically. Treat it as a way to compare states to each other, not as the share of income that renters actually pay.
Rent-to-income ratio by state: the full ranking
| Rank | State | Median gross rent | Median household income | Rent-to-income |
|---|---|---|---|---|
| 1 | Florida | $1,812 | $77,735 | 28% |
| 2 | Nevada | $1,709 | $81,134 | 25.3% |
| 3 | California | $2,104 | $100,149 | 25.2% |
| 4 | Arizona | $1,672 | $81,486 | 24.6% |
| 5 | Hawaii | $1,942 | $100,745 | 23.1% |
| 6 | New York | $1,634 | $85,820 | 22.8% |
| 7 | Georgia | $1,506 | $79,991 | 22.6% |
| 8 | Colorado | $1,822 | $97,113 | 22.5% |
| 9 | Oregon | $1,597 | $85,220 | 22.5% |
| 10 | Texas | $1,475 | $79,721 | 22.2% |
| 11 | Washington | $1,824 | $99,389 | 22% |
| 12 | North Carolina | $1,338 | $73,958 | 21.7% |
| 13 | Virginia | $1,646 | $92,090 | 21.4% |
| 14 | Tennessee | $1,284 | $71,997 | 21.4% |
| 15 | Massachusetts | $1,848 | $104,828 | 21.2% |
| 16 | District of Columbia | $1,931 | $109,707 | 21.1% |
| 17 | South Carolina | $1,272 | $72,350 | 21.1% |
| 18 | Delaware | $1,530 | $87,534 | 21% |
| 19 | Louisiana | $1,064 | $60,986 | 20.9% |
| 20 | New Jersey | $1,800 | $104,294 | 20.7% |
| 21 | Idaho | $1,384 | $81,166 | 20.5% |
| 22 | Rhode Island | $1,418 | $83,504 | 20.4% |
| 23 | Mississippi | $990 | $59,127 | 20.1% |
| 24 | Maryland | $1,721 | $102,905 | 20.1% |
| 25 | Utah | $1,593 | $96,658 | 19.8% |
| 26 | New Mexico | $1,117 | $67,816 | 19.8% |
| 27 | Alabama | $1,077 | $66,659 | 19.4% |
| 28 | Pennsylvania | $1,252 | $77,545 | 19.4% |
| 29 | Connecticut | $1,550 | $96,049 | 19.4% |
| 30 | Michigan | $1,168 | $72,389 | 19.4% |
| 31 | Vermont | $1,319 | $82,730 | 19.1% |
| 32 | Illinois | $1,322 | $83,211 | 19.1% |
| 33 | Maine | $1,210 | $76,442 | 19% |
| 34 | Arkansas | $982 | $62,106 | 19% |
| 35 | Oklahoma | $1,044 | $66,148 | 18.9% |
| 36 | Montana | $1,177 | $75,340 | 18.7% |
| 37 | New Hampshire | $1,558 | $99,782 | 18.7% |
| 38 | Kentucky | $998 | $64,526 | 18.6% |
| 39 | Indiana | $1,104 | $71,959 | 18.4% |
| 40 | Ohio | $1,090 | $72,212 | 18.1% |
| 41 | Alaska | $1,444 | $95,665 | 18.1% |
| 42 | Missouri | $1,067 | $71,589 | 17.9% |
| 43 | Minnesota | $1,291 | $87,117 | 17.8% |
| 44 | Wisconsin | $1,142 | $77,488 | 17.7% |
| 45 | West Virginia | $883 | $60,798 | 17.4% |
| 46 | Nebraska | $1,102 | $76,376 | 17.3% |
| 47 | Kansas | $1,079 | $75,514 | 17.1% |
| 48 | Wyoming | $998 | $75,532 | 15.9% |
| 49 | South Dakota | $999 | $76,881 | 15.6% |
| 50 | Iowa | $981 | $75,501 | 15.6% |
| 51 | North Dakota | $980 | $77,871 | 15.1% |
What the data shows
The pattern is clear. The most rent-burdened states are the Sun Belt and coastal growth markets: Florida (28.0%), Nevada, California, Arizona, and Hawaii all top the list. These are places where rents have run ahead of local incomes, often driven by in-migration and constrained housing supply.
The least burdened states cluster in the Upper Midwest and Plains: North Dakota, Iowa, South Dakota, Kansas, and Nebraska all sit under 18%. Here, incomes are solid and rents have stayed modest, so a paycheck stretches further.
Notice that even Florida, the worst state, sits at 28% at the median, just under HUD's 30% cost-burden line. That does not mean Floridians are comfortable. It means the median household (again, including homeowners) is technically under the line, while a large share of actual renters are well over it.
What it means for a first-time investor
Rent burden is a two-sided signal, and reading it correctly is a real skill. A high ratio like Florida's tells you demand for rentals is strong and people are willing (or forced) to spend a lot on housing. That is good for occupancy. But it also means rents are already stretched against local incomes, so there is less room to push rents higher without hitting a wall.
A lower ratio, like Ohio or Missouri, can be the more interesting investor story: rents are affordable relative to income, which leaves headroom, and home prices in those states tend to be lower too, which is where cash flow actually lives. This is why so many of our best cities for house hacking sit in the affordable Midwest, not the expensive coasts.
The limits of this data
A state median is a blunt instrument. Before you read too much into it:
- It blends every city in the state. Florida's number mixes Miami with rural panhandle counties. Your actual submarket is what matters.
- It uses median household income, not renter income. Renters earn less than the overall median, so their real burden is higher.
- It is a snapshot. Rents and incomes move, and the national rental vacancy rate was 7.3% in early 2026 per Census data, which shapes how much pricing power landlords actually have.
Use this ranking to compare states, then zoom into a specific metro and neighborhood before you make any decision.
Frequently Asked Questions
Which state has the highest rent-to-income ratio?
Florida has the highest at 28.0%, meaning median annual gross rent equals about 28% of median household income, per 2024 Census data. Nevada (25.3%) and California (25.2%) follow. These Sun Belt and coastal growth states have seen rents climb faster than local incomes.
What is a good rent-to-income ratio?
A common rule of thumb is to keep rent at or below 30% of your income. HUD considers a household cost-burdened when housing costs exceed 30% of income and severely burdened above 50%. At the state median, even the most burdened state (Florida) sits just under 30%, though many individual renters are well above it.
Which states are most affordable for renters?
By rent-to-income ratio, North Dakota (15.1%), Iowa (15.6%), and South Dakota (15.6%) are the most affordable at the median, followed by Kansas, Nebraska, and Wyoming. These Upper Midwest and Plains states pair solid incomes with modest rents.
Why does rent burden matter for real estate investors?
Rent burden is a demand signal. A high ratio means strong rental demand but also that rents are stretched against local incomes, leaving little room to raise them. A lower ratio can mean more headroom for rent growth and, often, lower purchase prices, which is where cash flow tends to come from.
Rent-to-income ratios are a useful first filter for comparing states, but they are only a filter. The states where rent is most affordable relative to income often overlap with the affordable markets where beginner investors find cash flow. Use this table to narrow your search, then dig into a specific metro. See how the affordable markets stack up in the best cities for house hacking, run a real deal through the free house hacking calculator, and learn the full market-selection process in the 28-day course.
