America’s 10 Best Rental Markets: Jobs, Affordable Homes and More

Looking for a place to rent? You may want to consider Austin, TX.

Austin was ranked the best rental market in the United States based on the number of affordable rental options and job opportunities, according to a new report from Realtor.com®. Renters here are also in good company, with the city having the highest percentage of renters (56.1%) among the top 10 rental markets.

“Living in markets with a high proportion of renters indicates excellent access to urban amenities, including public transportation, entertainment, dining options and cultural attractions, which are very attractive to renters,” explains Jiayi Xu, Realtor Economist .com. wrote this report.

To find the best rental markets, the data team ranked 325 cities and towns with a population of more than 75,000 located within the 50 largest metro areas according to the following factors, in terms of what makes a great place for renters.

This includes analyzing rental affordability, which is assessed by rent-to-income ratios, as well as rental availability. It also takes into account job stability, assessed by the projected unemployment rate, as well as the number of job opportunities, based on data on online job availability and average commute times. The analysis also took into account the number of tenants among families over the age of 25.

Spoiler alert: All of the top 10 rental markets are located in the South and Midwest, with none in the Northeast or West.

Even the top rental markets in the Northeast (Lawrence, MA) and West (Denver) failed to make the top 10.

“Relatively low rental affordability and low rental vacancy rates have caused these two cities to drop from the top 10 list,” says Xu.

So what other cities? He did make the cut? The top 10 rental markets in the United States are as follows, according to Realtor.com’s report:

Metro Area: Austin – Round Rock, TX
Rent to income ratio: 19.7%
Average journey time: 26 minutes

Austin is one of the fastest growing cities in the US. With major tech companies like Google, Apple and Oracle expanding into the area, it has become a buzzing tech hub with plenty of job opportunities and a low unemployment rate (3.3%).

The Texas state capital also features diverse cultural neighborhoods and a vibrant music scene.

Realtor.com recently named Austin the best rental market for college graduates in 2024.

Rent to income ratio: 17.7%
Average journey time: 24 minutes

Oklahoma City is the most affordable rental market in the top 10, with a rent-to-income ratio of 17.7%.

“A lower rent-to-income ratio is desirable, as it means a smaller portion of monthly income goes toward rent, leaving more budget available for other expenses,” says Xu.

And there are plenty of fun things to spend those savings on, including award-winning restaurants, Oklahoma City Thunder basketball games, and OKC Philharmonic concerts.

Metro area: Birmingham – Hoover, AL
Rent to income ratio: 22.9%
Average journey time: 24 minutes

This picturesque town has excellent breweries, top-notch healthcare, and many incredible places to hike, bike, and fish.

It also has the highest number of vacant rentals (12.3%) among the top 10.

“This means that tenants can have an abundance of rental properties to choose from and can have greater bargaining power when negotiating with landlords,” Xu says.

Metro Area: San Antonio – New Braunfels, TX
Rent to income ratio: 21.3%
Average journey time: 26 minutes

San Antonio, with its food culture and great music venues, is often compared to Austin.

But one thing that sets it apart is the iconic San Antonio Riverwalk, which is one of the top attractions in Texas. The 15-mile boardwalk offers amazing restaurants, stylish hotels and exquisite boutiques.

The price of all that fun can add up, so luckily San Antonio ranks high for job openings, which means there are plenty of employment opportunities.

In addition, San Antonio has a large military presence, which provides strong community support, quality services, cultural diversity and increased security, making it an even more attractive place to live.

Metro area: Minneapolis – St. Paul – Bloomington, MN-WI
Rent to income ratio: 19.3%
Average journey time: 24 minutes

Minneapolis is an outdoor lover’s paradise, with more than 22 lakes within the city limits and plenty of green space, including parks, gardens and bike paths.

The Midwest city is also affordable: Minneapolis is the second most affordable rental market in the top 10. The Minneapolis metro area also ties with the Nashville metro area for the lowest projected 2024 unemployment rate (2.9%) among the top 50 rental markets.

A lower projected unemployment rate indicates that renters may face less competition when looking for work and enjoy better job security, Xu says.

Metro Area: Atlanta – “Sandy Springs” Alpharetta, GA
Rent to income ratio: 23.4%
Average journey time: 27 minutes

Sandy Springs is only 14 miles from Atlanta, so it offers a nice mix of urban and suburban living. This charming town has excellent schools, a diverse dining scene, and more than a dozen beautiful parks.

More than half of the residents rent in Sandy Springs. It has the third highest percentage of renters (54.6%) among the top 10 cities.

Here’s why that’s a good thing: “Markets with a high percentage of renters are more likely to have well-defined tenant protection policies, such as rent controls, eviction protection and high habitability standards,” Xu explains. .

Metro area: Nashville – Davidson – Murfreesboro – Franklin, TN
Rent to income ratio: 23.8%
Average journey time: 26 minutes

Nashville is known for its amazing restaurants, fun nightlife, and incredible music scene, so renters will have no shortage of things to do here.

And Music City’s job market is booming. Metro Nashville has the lowest projected unemployment rate (2.9%) among the top 50, tying with Minneapolis for the No. 1 place.

Although thousands of people are moving to the city for business and pleasure, there are still plenty of rental properties to choose from, as Nashville has a 9.2% rental vacancy rate.

According to Xu, one reason for the higher vacancy rates in key markets like Nashville may be increased new construction and completions of multifamily in the South and Midwest, which expands the overall rental inventory.

Metro area: Kansas City, MO–Kansas City, KS
Rent to income ratio: 19.7%
Average journey time: 24 minutes

Kansas City is famous for its barbecue, live jazz scene and championship football team. This big city with a small-town feel is also home to a vibrant arts community, with world-class museums and galleries galore.

Kansas City made the top 10 because of its abundant job opportunities and affordability — two traits that also attract real estate investors.

Rent to income ratio: 20%
Average journey time: 25 minutes

Raleigh is a buzzing tech hub that ranks high on our list for affordability. You can get more bang for your buck here and enjoy incredible craft beer, plentiful food trucks, and great golf courses. (Plus, the beach is only a two-hour drive.)

And speaking of driving, the average commute in Raleigh is 25 minutes, which is shorter than the city/town average of 30 minutes.

“This translates into a potential savings of 43 hours per year for a commuter who travels five days a week,” says Xu.

Metro area: Virginia Beach – “Norfolk” Newport News, VA-NC
Rent to income ratio: 22.8%
Average journey time: 25 minutes

Norfolk is a beautiful community with thousands of spectacular beaches with plenty of places for boating and fishing. It’s also a great place to visit historic battleships, the Chrysler Museum of Art, and the Virginia Zoo.

When it comes to being a top rental market, this military city ranks high for its stable job market and large number of rentals.