Posted by: Adam McCann

Homeownership isn’t for everyone. Roughly 43 million American households have opted to rent rather than buy their homes because of convenience, cost or both. But renting isn’t always a cheaper or better alternative to owning a property. The right road to take depends on a variety of factors, including an individual’s or family’s financial means and how well the local real-estate market is doing.

One reason this is such an important decision financially is that rental prices have soared over the years, jumping 2.7% in the past year alone. And with demand for affordable housing exceeding supply, more than one-quarter of all renters – 11 million people in total – spend more than 50 percent of their income on housing. They are classified as “severely cost-burdened” by federal housing agencies as a result.

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 23 key measures of attractiveness. Our data set ranges from the difference between rental rates and mortgage payments to historical price changes, the cost of living and jobs availability. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

1. Main Findings
2. Ask the Experts
3. Methodology

Main Findings

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/23010/geochart-renters.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2LR0BAE>  

Best Places to Rent

Overall Rank (1 = Best)	City	Total Score	‘Rental Market & Affordability’ Rank	‘Quality of Life’ Rank
1	Scottsdale, AZ	64.20	63	1
2	Overland Park, KS	62.97	12	16
3	Bismarck, ND	62.80	1	88
4	Gilbert, AZ	61.93	48	5
5	Lincoln, NE	61.38	18	30
6	Chandler, AZ	60.88	58	6
7	Peoria, AZ	60.75	49	4
8	Boise, ID	58.69	60	15
9	El Paso, TX	58.66	36	34
10	Fremont, CA	58.64	45	21
11	Irvine, CA	58.62	116	3
12	Chesapeake, VA	58.60	2	78
13	Casper, WY	58.55	3	90
14	Virginia Beach, VA	58.44	6	54
15	Sioux Falls, SD	57.29	4	107
16	Newport News, VA	55.49	5	111
17	Fargo, ND	55.22	19	74
18	Nashua, NH	55.16	90	17
19	Plano, TX	54.83	112	18
20	Cedar Rapids, IA	54.57	11	87
21	Columbia, MD	54.54	16	93
22	South Burlington, VT	54.38	93	22
23	Tampa, FL	54.37	143	8
24	Omaha, NE	54.24	35	65
25	Jacksonville, FL	54.04	59	41
26	Honolulu, HI	53.88	122	26
27	Mesa, AZ	53.62	110	27
28	Cheyenne, WY	53.52	14	106
29	Huntsville, AL	53.39	13	101
30	Tempe, AZ	53.25	89	25
31	Henderson, NV	53.13	55	49
32	Charleston, SC	53.12	107	24
33	Austin, TX	53.08	71	39
34	Birmingham, AL	53.01	32	82
35	Glendale, AZ	52.81	103	36
36	Raleigh, NC	52.74	30	89
37	Washington, DC	52.40	23	92
38	Rancho Cucamonga, CA	52.33	125	20
39	Colorado Springs, CO	51.92	81	46
40	Grand Prairie, TX	51.90	117	28
41	Phoenix, AZ	51.89	111	37
42	Portland, ME	51.88	118	32
43	Amarillo, TX	51.70	34	91
44	San Diego, CA	51.64	177	2
45	Rapid City, SD	51.35	15	124
46	Lewiston, ME	51.23	44	71
47	San Francisco, CA	51.15	76	50
48	Winston-Salem, NC	51.10	20	117
49	Huntington Beach, CA	50.98	152	12
50	Las Cruces, NM	50.68	28	115
51	Tucson, AZ	50.66	54	70
52	Port St. Lucie, FL	50.61	156	13
53	Madison, WI	50.34	80	59
54	Arlington, TX	50.31	70	62
55	Reno, NV	50.26	84	58
56	Greensboro, NC	50.25	27	112
57	Nampa, ID	50.06	109	47
58	Fort Worth, TX	49.96	74	63
59	Cape Coral, FL	49.76	162	11
60	Manchester, NH	49.57	114	45
61	Pittsburgh, PA	49.57	67	69
62	Pembroke Pines, FL	49.52	169	7
63	Fontana, CA	49.30	95	52
64	Orlando, FL	49.23	158	31
65	Billings, MT	48.95	21	146
66	Oxnard, CA	48.67	119	51
67	Dover, DE	48.57	33	127
68	Norfolk, VA	48.53	17	132
69	Aurora, IL	48.11	52	102
70	Las Vegas, NV	48.07	85	76
71	Des Moines, IA	48.03	56	97
72	Fort Smith, AR	48.03	9	153
73	Juneau, AK	47.95	7	166
74	Pearl City, HI	47.92	157	14
75	Santa Rosa, CA	47.70	179	9
76	Mobile, AL	47.58	10	157
77	Kansas City, MO	47.57	31	128
78	Glendale, CA	47.57	171	10
79	Sacramento, CA	47.46	163	35
80	St. Petersburg, FL	47.45	148	48
81	Santa Clarita, CA	47.37	164	23
82	Anaheim, CA	47.35	160	38
83	Grand Rapids, MI	47.26	128	56
84	Durham, NC	47.08	40	122
85	Oklahoma City, OK	46.96	42	120
86	Riverside, CA	46.92	113	75
87	Brownsville, TX	46.83	83	86
88	Warwick, RI	46.82	100	81
89	Chula Vista, CA	46.65	173	33
90	Denver, CO	46.57	140	61
91	Jersey City, NJ	46.52	29	138
92	San Antonio, TX	46.42	65	105
93	Irving, TX	46.36	120	73
94	Burlington, VT	46.26	141	57
95	Minneapolis, MN	46.10	86	94
96	Bakersfield, CA	46.02	82	98
97	St. Paul, MN	46.00	105	83
98	Richmond, VA	45.95	53	134
99	New York, NY	45.89	136	66
100	Laredo, TX	45.73	97	95
101	Garden Grove, CA	45.47	170	29
102	Albuquerque, NM	45.40	8	161
103	Garland, TX	45.30	153	60
104	Long Beach, CA	45.22	167	43
105	Ontario, CA	45.16	150	55
106	Dallas, TX	44.90	144	72
107	Columbus, OH	44.78	87	108
108	Lexington-Fayette, KY	44.77	108	100
109	Charlotte, NC	44.71	64	118
110	San Jose, CA	44.66	176	40
111	Moreno Valley, CA	44.58	132	79
112	Los Angeles, CA	44.56	174	42
113	Spokane, WA	44.39	51	133
114	Yonkers, NY	44.36	102	109
115	Portland, OR	44.22	147	77
116	West Valley City, UT	44.14	88	114
117	Chattanooga, TN	44.05	78	119
118	Missoula, MT	43.97	66	126
119	Corpus Christi, TX	43.97	104	110
120	Miami, FL	43.78	175	44
121	Louisville, KY	43.78	43	149
122	Salem, OR	43.71	135	85
123	Nashville, TN	43.65	121	104
124	Little Rock, AR	43.64	22	170
125	Atlanta, GA	43.56	149	80
126	Cincinnati, OH	43.46	124	103
127	Fresno, CA	43.27	99	116
128	St. Louis, MO	43.16	37	159
129	Wichita, KS	43.03	25	163
130	Montgomery, AL	42.99	47	155
131	Tallahassee, FL	42.91	115	113
132	Salt Lake City, UT	42.85	75	130
133	Chicago, IL	42.84	50	148
134	North Las Vegas, NV	42.81	72	125
135	Houston, TX	42.73	98	121
136	Gulfport, MS	42.65	62	139
137	Springfield, MO	42.51	24	177
138	Modesto, CA	42.22	106	123
139	Philadelphia, PA	42.21	69	137
140	Milwaukee, WI	41.95	38	164
141	Fort Lauderdale, FL	41.91	166	64
142	Oceanside, CA	41.90	181	19
143	Vancouver, WA	41.88	161	68
144	Columbia, SC	41.55	77	140
145	Knoxville, TN	41.35	94	135
146	Providence, RI	41.11	96	143
147	Aurora, CO	40.92	155	99
148	Fayetteville, NC	40.88	46	169
149	Anchorage, AK	40.55	26	176
150	Tulsa, OK	40.22	91	144
151	Wilmington, DE	40.06	41	178
152	Santa Ana, CA	39.83	178	67
153	Oakland, CA	39.70	101	151
154	Baltimore, MD	39.59	39	175
155	Boston, MA	39.58	172	84
156	Augusta, GA	39.46	134	136
157	Indianapolis, IN	39.34	61	162
158	Rochester, NY	39.27	79	158
159	Seattle, WA	39.19	168	96
160	Hialeah, FL	38.94	182	53
161	Buffalo, NY	38.70	68	167
162	Worcester, MA	38.52	146	129
163	San Bernardino, CA	38.50	142	131
164	Shreveport, LA	38.33	57	174
165	Lubbock, TX	38.13	133	141
166	Stockton, CA	37.80	137	142
167	Fort Wayne, IN	37.79	130	147
168	Tacoma, WA	37.71	139	150
169	New Orleans, LA	37.22	131	154
170	Akron, OH	36.26	145	156
171	Columbus, GA	36.06	151	152
172	Jackson, MS	35.81	126	165
173	Newark, NJ	35.63	123	168
174	Toledo, OH	34.91	92	173
175	Charleston, WV	34.24	129	180
176	Huntington, WV	33.94	138	172
177	Baton Rouge, LA	32.77	159	160
178	Memphis, TN	32.59	73	182
179	Detroit, MI	31.08	127	181
180	Cleveland, OH	30.61	154	179
181	New Haven, CT	30.51	165	171
182	Bridgeport, CT	29.46	180	145

 

Ask the Experts

Finding a suitable rental unit is a similar process to buying a home. Your search may be based purely on cost or also on needs, such as the number of bedrooms or close proximity to work. For guidance, we asked a panel of experts to share their thoughts on the following key questions:

1. What tips do you have for a person looking to get the best value in an apartment?
2. What are the most common mistakes that renters make when searching for a new apartment?
3. In evaluating the best and worst cities for renters, what are the top five indicators?
4. Are the fastest growing cities a good place for renters? Why?
5. How can local policymakers make housing more affordable for renters without upsetting homeowners?

< >

• Mary Ellen Brady Professor, Cerritos College, Real Estate Department
• Richard Grant Ph.D. – Urban Studies Director, Professor, Department of Geography and Regional Studies, University of Miami
• Katrin B. Anacker Ph.D. – Associate Professor of Public Policy, George Mason University, School of Policy, Government, and International Affairs
• Luis Bettencourt Inaugural Director, Mansueto Institute for Urban Innovation, Professor of Ecology and Evolution, University of Chicago

Methodology

In order to determine the best local rental markets, 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.”

We evaluated those dimensions using 23 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.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our 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 (~2.79 Points)Note: This metric specifically measures the share of renter occupied housing units among total occupied housing units.
• Rental Vacancy Rate: Full Weight (~2.79 Points)
• Sublet Laws-Friendliness: Full Weight (~2.79 Points)
• Average Home Square Footage: Half Weight (~1.40 Points)
• Share of Newer Homes: Full Weight (~2.79 Points)Note: “Newer Homes” include housing units built between 2010 and 2017.
• Rental Affordability: Triple Weight (~8.37 Points)Note: This metric was calculated as follows: Median Gross Rent / Median Annual Household Income.
• Share of Apartment Community Pillar Listings: Full Weight (~2.79 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 (~8.37 Points)Note: This metric specifically measures the year-over-year change in rent prices (2019 vs. 2018 vs. 2017).
• Forecasted Change of Median Rent: Double Weight (~5.58 Points)Note: This metric is based on the Zillow Rent Forecast over the coming year.
• Share of Severely Cost-Burdened Renter Households: Full Weight (~2.79 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 (~2.79 Points)
• Rent-to-Price Ratio: Full Weight (~2.79 Points)
• Cost of Living: Triple Weight (~8.37 Points)
• Buy vs Rent Breakeven Horizon: Full Weight (~2.79 Points)Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.
• Security-Deposit Limit: Full Weight (~2.79 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 Ranking: Full Weight (~5.71 Points)
• Job Market: Full Weight (~5.71 Points)Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking.
• Driver-Friendliness: Half Weight (~2.86 Points)Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking.
• Recreation-Friendliness: Full Weight (~5.71 Points)Note: This metric is based on WalletHub’s “Best & Worst Cities for Recreation” ranking.
• Weather: Half Weight (~2.86 Points)Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking.
• Quality of Public School System: Half Weight (~2.86 Points)Note: This metric is based on GreatSchools.org’s ratings of U.S. public schools.
• Safety: Double Weight (~11.43 Points)Note: This metric measures the violent- and property-crime rates.
• Presence of State Bedbug Laws: Half Weight (~2.86 Points)Note: This binary metric measures the presence or absence of bedbug laws in the state. Bedbug laws address bedbug infestations in rental properties.

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 Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Council for Community and Economic Research, Zillow, Harvard Joint Center for Housing Studies, Insurance Information Institute, Department of Housing and Urban Development, Flex Zone, Gallup, Federal Bureau of Investigation, Regents of the University of California, GreatSchools.org, NOLO and WalletHub research.

Image: fizkes / Shutterstock.com

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