During 2021, rental prices grew at almost double the rate of any previous year. Meanwhile, mortgage rates are also rising at the fastest rate in over a decade. Like home prices, however, rental rates can vary significantly by region, state or city. And in some places, renting will prove to be more cost-effective and a better overall value than owning.
To determine where renters can get the most bang for their buck, WalletHub compared more than 180 rental markets based on 22 key measures of rental attractiveness and quality of life. Our data set ranges from the difference between rental rates and mortgage payments to historical price changes, the cost of living and job availability.
Best Places to Rent
| Overall Rank | City | Total Score | Rental Market & Affordability | Quality of Life |
|---|---|---|---|---|
| 1 | Columbia, MD | 60.04 | 11 | 5 |
| 2 | Overland Park, KS | 59.58 | 9 | 12 |
| 3 | Sioux Falls, SD | 57.02 | 3 | 110 |
| 4 | Bismarck, ND | 56.31 | 1 | 152 |
| 5 | Lincoln, NE | 55.90 | 10 | 47 |
| 6 | Chandler, AZ | 55.80 | 31 | 16 |
| 7 | Scottsdale, AZ | 55.75 | 45 | 3 |
| 8 | Gilbert, AZ | 55.54 | 28 | 20 |
| 9 | El Paso, TX | 55.24 | 42 | 9 |
| 10 | Casper, WY | 54.84 | 2 | 150 |
Metrics:
WalletHub compared 182 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — across two key dimensions, “Rental Market & Affordability” and “Quality of Life.”
WalletHub used 22 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for renters. Data for metrics marked with an asterisk (*) were available at the state level only.
Each city’s weighted average across all metrics was determined to calculate its overall score and used the resulting scores to rank-order the sample. WalletHub’s sample considers only the city proper in each case and excludes cities in the surrounding metro area.
Rental Market & Affordability – Total Points: 60
- Share of Renters: Full Weight (~3.24 Points)
Note: This metric specifically measures the share of renter occupied housing units among total occupied housing units. - Rental Vacancy Rate: Full Weight (~3.24 Points)
- Sublet Laws-Friendliness*: Full Weight (~3.24 Points)
- Average Home Square Footage: Half Weight (~1.62 Points)
- Share of Newer Homes: Full Weight (~3.24 Points)
Note: “Newer Homes” include housing units built between 2010 and 2020. - Rental Affordability: Triple Weight (~9.73 Points)
Note: This metric was calculated as follows: Median Gross Rent / Median Annual Household Income. - Share of Apartment Community Pillar Listings: Full Weight (~3.24 Points)
Note: A Community Pillar landlord has agreed to relax their standard tenant screening process in order to help applicants with potential rental barriers—such as low incomes, spotty credit scores, unemployment, or lack of housing references—be able to obtain housing. - Historical Rental-Price Changes: Triple Weight (~9.73 Points)
Note: This metric specifically measures the year-over-year change in rent prices (2022 vs. 2021 vs. 2020). - Share of Severely Cost-Burdened Renter Households: Full Weight (~3.24 Points)
Note: “Severely Cost-Burdened Renter Households,” as defined by the U.S. Department of Housing and Urban Development, refers to consumers who spend at least 50 percent of their income on housing. - Average Annual Renters-Insurance Premium*: Full Weight (~3.24 Points)
- Rent-to-Price Ratio: Full Weight (~3.24 Points)
- Cost of Living: Triple Weight (~9.73 Points)
- Security-Deposit Limit*: Full Weight (~3.24 Points)
Note: This metric measures the maximum security-deposit amount that landlords are allowed to charge in the state. A lower amount is ideal for renters.
Quality of Life – Total Points: 40
- City Satisfaction Index: Full Weight (~4.00 Points)
Note: This metric is based on Sharecare’s Well-Being “Community” Index Score, and refers to residents liking where they live, feeling safe and having pride in their community. - Job Market: Full Weight (~4.00 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking. - Driver-Friendliness: Half Weight (~2.00 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking. - Recreation-Friendliness: Full Weight (~4.00 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Recreation” ranking. - Weather: Half Weight (~2.00 Points)
Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking. - Quality of Public School System: Half Weight (~2.00 Points)
Note: This metric is based on GreatSchools.org’s ratings of U.S. public schools. - Safety: Double Weight (~8.00 Points)
Note: This metric measures the violent- and property-crime rates. - Presence of State Bedbug Laws*: Half Weight (~2.00 Points)
Note: This binary metric measures the presence or absence of bedbug laws in the state. Bedbug laws address bedbug infestations in rental properties. - Percentage of Residents Who Are Fully Vaccinated: Triple Weight (~12.00 Points)