Renters looking for more purchasing power are turning to smaller markets, and a recent Apartments.com study confirms that several Midwestern cities deliver the most bang for the buck in 2026. By comparing average one‑bedroom rents to median household incomes, the analysis identified the ten small metros where renters spend the smallest share of their earnings.

How the rankings were compiled

Researchers examined renter data from Apartments.com alongside HUD and U.S. Census figures. They evaluated 180 small and mid‑size metros outside the 30 largest U.S. metros, calculating a rent‑to‑income ratio using each area’s median household income. The national average rent‑to‑income ratio sits at 15.6%.

Top of the list: Peoria, IL and Cedar Rapids, IA

Both Peoria and Cedar Rapids tie for the most favorable ratio at 9.3%, meaning renters in these cities spend roughly one‑tenth of their income on a one‑bedroom apartment—about 40% below the national average. Peoria’s economy is anchored by Caterpillar, OSF Saint Francis Medical Center, and several colleges, while Cedar Rapids benefits from a diversified base that includes education, government, aerospace, and food processing. However, Cedar Rapids saw the steepest rent growth, up 7.7% over the past year.

Other notable midsize markets

Fargo, ND, the state’s largest city, offers a rent‑to‑income ratio that keeps housing costs 4.4% above the national average for renters but still 16.8% below the overall U.S. average, with an average rent of $964 per month. Champaign, IL, home to the University of Illinois, delivers a 2.4% lower cost‑of‑living overall, with housing 16.3% below the national average.

Topeka, KS, the state capital, provides the lowest cost‑of‑living on the list—13.6% below the national average—and rents nearly 50% lower than the national benchmark. Sioux Falls, SD, and La Crosse, WI, also rank highly, offering strong value across most expense categories.

College towns and regional hubs

Columbia, MO, and Champaign, IL, illustrate how university presence can boost affordability while supporting vibrant cultural scenes. Columbia’s all‑category expenses are below national averages, with housing 23.3% cheaper. Similarly, Wausau, WI, maintains a small‑town feel with rent‑to‑income ratios that keep renters paying about $555 less per month than the national average.

What renters should watch

While these cities currently offer strong affordability, the report notes that rents are rising in many markets, particularly Cedar Rapids and Casper, WY, where rents increased 7.7% and 5% respectively over the past year. Prospective renters should monitor local market trends and consider total cost‑of‑living factors beyond rent alone.

Overall, the study underscores that small‑city living can provide significant financial relief for families and individuals seeking to stretch their incomes, especially in the Midwest where a combination of lower housing costs and stable job markets creates a compelling value proposition.

Original reporting: KRDO (Colorado Springs metro) — read the source article.