Renters looking for affordable housing are turning to smaller markets, and a fresh analysis from Apartments.com highlights the ten U.S. cities where a one‑bedroom apartment consumes the smallest share of median household income. In 2026, Peoria, Illinois and Cedar Rapids, Iowa tie for the most favorable rent‑to‑income ratio at just 9.3%, a full 40% below the national average of 15.6%.
Why Small Cities Matter
Across the country, smaller metros are gaining appeal because they combine lower rent levels with a livable quality of life. The study examined 180 small and mid‑size metro areas outside the 30 largest U.S. metros, using Apartments.com renter data alongside HUD and Census figures. Rankings were based on the ratio of the average one‑bedroom rent to the area’s median household income.
Top Rankings
1. Peoria, IL (Tie) – Renters spend 9.3% of median income on a one‑bedroom unit, with housing costs 30.1% below the national average. Major employers include Caterpillar and OSF Saint Francis Medical Center, and the city offers extensive parks and riverfront recreation at a low cost.
2. Cedar Rapids, IA (Tie) – Also at 9.3%, Cedar Rapids enjoys the lowest average rent of the list. Though rents rose 7.7% over the past year—the fastest growth among the ten—overall expenses remain below national levels. The city’s economy spans education, government, aerospace, and food processing.
3. Fargo, ND – With an average rent of $964 per month, Fargo’s housing costs sit 4.4% above the national renter average but remain 16.8% lower than the overall U.S. average. The city’s diversified economy includes government, manufacturing, healthcare, and education.
4. Champaign, IL – Home to the University of Illinois, Champaign’s rent‑to‑income ratio is slightly higher, yet housing costs are still 16.3% below the national average and rent prices 33% lower.
5. Topeka, KS (Tie) – The state capital offers the lowest cost‑of‑living figure on the list, 13.6% below the national average, with rents nearly 50% lower than the national benchmark.
6. Sioux Falls, SD (Tie) – Sioux Falls delivers a cost‑of‑living advantage of 12.5% below the national average. The city benefits from a corporate‑friendly tax environment that has attracted financial firms.
7. La Crosse, WI – Average rent stays under $900, and the city’s location on the Mississippi River draws regional headquarters and health‑system offices.
8. Columbia, MO – All expense categories—housing, groceries, utilities, transportation, healthcare, and goods—are below national averages. Housing costs are 23.3% lower, and the city’s economy is anchored by the University of Missouri and a growing healthcare sector.
9. Casper, WY (Tie) – Casper’s overall cost of living runs 10.1% below the national average. Rents have risen 5% over the past year, the second‑fastest increase on the list.
10. Wausau, WI (Tie) – With an average rent of $889 per month, renters save about $555 compared with the national average. The city’s cost of living is 6.2% lower than the national figure.
What This Means for Renters
The data underscores a broader trend: while rents are climbing nationwide, smaller markets continue to provide meaningful savings for households. For families and individuals seeking to preserve more of their income for savings, education, or faith‑based activities, these cities offer a compelling mix of affordability, employment opportunities, and community amenities.
Looking Ahead
Renters should monitor local market dynamics, as some cities—particularly Cedar Rapids and Casper—show the steepest rent growth year‑over‑year. Nonetheless, the overall rent‑to‑income ratios remain well below the national average, suggesting that small‑city living remains a viable path to financial stability.
Original reporting: KTVZ (Central Oregon) — read the source article.
