- South Dakota is the state spending the least on rent, with only 16.21% of average income going towards it
- Illinois and Nebraska take second and third respectively
New research has found the states that are spending the least on rent, with South Dakota coming out on top.
The States Spending The Least On Rent
The study by moving experts at Forbes Home analyzed data from the U.S. Bureau of Economic Analysis and the U.S. Department of Housing & Urban Development to see in which states residents were spending the smallest percentage of income on rent.
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They found that South Dakota residents are spending the least out of their income on rent. The latest statistics show that the average yearly income in the state is $64,462, and the average monthly income is $5,372. With the average monthly rent for all size homes being $871, South Dakota residents are spending just 16.21% of their income on rent on average, the lowest of any state.
Illinois takes second place on the list, with an average of 16.37% of income going toward rent. This is based on an average annual income of $67,244, which equates to an average monthly income sitting $5,604, compared to the average monthly rent being $918 for all rentable homes.
Taking third place on the list is Nebraska, where the state’s residents spend roughly 16.89% of their income on rent on average. According to research, the state’s average monthly income is $5,100 - $61,205 per year – with $861 of this going towards rent every month.
Coming in fourth place on the list is the state of North Dakota. The state came in with an average income of $5,377 per month and $64,524 per year, respectively. With the average monthly rent sitting at $923 in the state, 17.16% of income goes towards rent, the fourth lowest in the top ten.
Rounding out the top five is the state of Wyoming, with 17.53% of income going towards rent. This is due to the state having an average yearly income of $69,666, the highest in the top ten, which works out at a monthly income of $5,806 and an average monthly rent of $1,018.
| # | State | 2021 Average Yearly Income | 2021 Average Monthly Income | Average monthly rent (all sizes) | Percentage of rent spent on income |
| 1 | South Dakota | $64,462 | $5,372 | $871 | 16.21% |
| 2 | Illinois | $67,244 | $5,604 | $918 | 16.37% |
| 3 | Nebraska | $61,205 | $5,100 | $861 | 16.89% |
| 4 | North Dakota | $64,524 | $5,377 | $923 | 17.16% |
| 5 | Wyoming | $69,666 | $5,806 | $1,018 | 17.53% |
| 6 | Kansas | $58,924 | $4,910 | $869 | 17.69% |
| 7 | Minnesota | $66,280 | $5,523 | $989 | 17.90% |
| 8 | Iowa | $57,163 | $4,764 | $868 | 18.23% |
| 9 | Missouri | $55,325 | $4,610 | $842 | 18.25% |
| 10 | Pennsylvania | $64,279 | $5,357 | $994 | 18.55% |
The study was conducted by Forbes Home, whose editorial team has decades of experience in the personal finance industry. The team is passionate about helping consumers make smart financial decisions and choose the best financial products for their life and goals.
Forbes Home's priority is ensuring its coverage, reviews and advice are backed by research, deep expertise and strict methodologies.
