Median home prices in the U.S. hit a record high last year, making the dream of owning a home out of reach for many people. But that doesn’t mean that renting is a much cheaper option, as new research reveals that on average, Americans are now spending at least a third of their salary on rent.
ATTOM, a real estate analytics firm, just came out with its 2026 Rental Affordability Report, revealing what people are paying in rent across the country.
- They analyzed median rents for three-bedroom homes in 364 counties nationwide and used average weekly wage data from the Bureau of Labor Statistics.
- According to the research, more than three-quarters (76.9%) of renters in those counties are renting a three-bedroom property.
- The most affordable counties for renters are in Alabama, Michigan, Tennessee, Iowa and Illinois.
- Jefferson County, Alabama, is the most affordable overall, with 20.2% of someone’s salary going toward rent.
- Wayne County, Michigan; Shelby County, Tennessee; Black Hawk County, Iowa, and Peoria County, Illinois, are also some of the most affordable for rent.
- On the flip side, the least affordable places to rent are Suffolk County and Westchester County, New York; Monterey County, California; Maui County, Hawaii; and Collier County, Florida.
- In more than half of the counties analyzed, owning a home is actually more affordable than renting a three-bedroom property. While home ownership expenses take a smaller share of residents’ wages than rent there, buying a house typically requires a large up-front deposit, which makes it challenging for many potential home buyers.
Source: People