Small City Rents Cost Households Less Than Average
Renters in top-ranked small cities spend just 9.3% of their income on rent, well below the 15.6% national average.
Updated on Oct. 15, 2026 in Apartments
Live Poll
Do you believe smaller cities generally offer better affordability and quality of life than major metropolitan areas?
Peoria, Illinois, and Cedar Rapids, Iowa, share the top spot on a new list of the most affordable small cities for renters. Households in these cities spend just 9.3% of their income on rent, significantly lower than the national average.
Why it matters
Understanding local rent-to-income ratios can help households evaluate the long-term sustainability of their housing costs. By prioritizing markets with lower relative rent burdens, renters may be able to allocate more of their monthly budget toward savings or other essential expenses.
Renters in top-tier small cities spend 9.3% of their income on rent, substantially less than the 15.6% national average. Housing costs in Peoria are 30.1% lower than the U.S. average, with one-bedroom units averaging $818 per month.
The players
Apartments.com
An online marketplace that provides rental listings and property data for consumers.
U.S. Housing and Urban Development department
A federal agency that sets national housing standards and provides data on housing costs.
U.S. Census Bureau
The federal agency responsible for collecting data on the population and national economic conditions.
The details
A study of 180 metro areas assessed how much of a typical household income is required to cover rent in small and mid-size cities. This approach identifies markets where housing costs consume less of the monthly budget compared to the rest of the country. In many of the top-ranked areas, these lower costs extend to groceries and other goods, creating a lower overall cost of living.
Timeline
2026: Apartments.com published the ranking of small U.S. cities.
2026: One-bedroom rent increased in five of the top cities.
Money Landscape
These findings place Midwest cities well ahead of traditional housing affordability benchmarks used by the U.S. Department of Housing and Urban Development. The data highlights a distinct regional trend where lower-than-average rent burdens contrast with rising costs in other markets.
Households currently evaluating their living expenses should compare their local rent-to-income ratio against the national 15.6% benchmark. If you are considering a move to lower your housing costs, consult with a financial professional to model how a change in location impacts your overall budget.
The takeaway
Low rent-to-income ratios in the Midwest demonstrate the benefit of factoring cost-of-living data into major household moves. Before committing to a move, review your current housing budget and research the rent-to-income ratio for prospective areas to ensure long-term affordability.
Further reading
Explore deeper insights into national rental trends in our Apartments section.
Source note: This article includes information reported by Indianapolis Star.
Live Poll
Do you believe smaller cities generally offer better affordability and quality of life than major metropolitan areas?
