How much annual income do you need to afford a rental? Much more than before, report says

Maddie McGay, NorthJersey.com

The rate at which rental prices have increased across the nation has began to slow, but the annual income renters need to make to comfortably afford their rental has seen a significant increase.

In April, rent prices grew by 0.6% month over month, or 3.6% from last year, slower than the 0.7% month-over-month average seen this time of year prior to the pandemic, according to Zillow's April 2024 Rental Market Report. This has resulted in a typical rent price of $1,997 nationwide.

It is recommended that renters spend no more than 30% of their annual income on rent. So, at that rental price, a renter needs to make $79,889 annually to comfortably afford the cost — a 3.7% increase from the $58,692 annual salary needed to afford the typical national rent five years ago, according to the report.

Currently, the median United States household would spend 29.2% of their income on a new rental in April, according to the report. While this is still lower than the recommended 30%, it is an increase from 29.1% in March and from 27.6% before the pandemic.

Renter needed to make nearly $80,000 annually to afford the country's median monthly rent in April.
Renter needed to make nearly $80,000 annually to afford the country's median monthly rent in April.

In the New York metropolitan area — which the report said is one of the least affordable metropolitan areas for renters — households spend about 39.8% of their annual income on rent, a 4.2% increase from 2023. At that rate, renters here must make an annual income of $131,411 to afford the median monthly rent of about $3,285.

And, in New Jersey, the median monthly rent is $2,500, meaning renters need to make about $100,000 annually to afford it. This is a 4.38% increase from this time last year, when renters needed to make $95,800 annually to afford the median monthly rent of $2,395.

Here's a look at the annual income needed to comfortably afford the median rent in the country's 50 largest metropolitan areas:

  • San Jose, Calif. - $132,819

  • New York City - $131, 411

  • Boston - $123,269

  • San Francisco - $121,595

  • San Diego - $119,559

  • Los Angeles - $116,795

  • Miami - $111,633

  • Riverside, Calif. - $101,031

  • Washington, D.C, - $93,570

  • Sacramento, Calif. - $91,334

  • Seattle - $88,422

  • Tampa, Fla. - $83,889

  • Chicago - $82,889

  • Orlando, Fla. - $81,947

  • Providence - $81,896

  • Denver - $81,848

  • Atlanta - $77,133

  • Nashville, Tenn. - $76,343

  • Phoenix - $75,478

  • Philadelphia - $74,292

  • Portland, Ore. - $73,191

  • Baltimore - $72,436

  • Hartford, Conn. - $72,196

  • Las Vegas - $71,653

  • Charlotte, N.C. - $71,428

  • Austin, Tex. - $71,282

  • Dallas - $70,848

  • Raleigh, N.C. - $70,835

  • Jacksonville, Fla. - $69,746

  • Virginia Beach, Va. - $68,262

  • Salt Lake City - $68,262

  • Houston - $67,700

  • Minneapolis, Minn. - $66,956

  • New Orleans - $66,572

  • Richmond, Va. - $65,845

  • Indianapolis - $62,692

  • Columbus, Ohio - $60,337

  • Cincinnati - $59,997

  • San Antonio, Tex. - $59,088

  • Memphis, Tenn. - $57,921

  • Kansas City, Mo. - $57,811

  • Detroit - $57,447

  • Pittsburgh - $56,764

  • Birmingham, Ala. - $56,664

  • Louisville, Ky. - $56,104

  • St. Louis, Mo. - $55,682

  • Cleveland - $55,629

  • Milwaukee, Wis. - $54,567

  • Oklahoma City - $53,713

  • Buffalo, N.Y. - $53,664

Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.

This article originally appeared on NorthJersey.com: How much are NJ rentals? How much do I need to make to rent?

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