The Cities Where $100,000 Goes the Furthest for Renters, According to Zillow

We’ve all heard the adage “you get what you pay for.” Though when affordability is cited as a major concern among Americans, perhaps it’s more accurate to say “you get what you can pay for.”

That’s the idea behind a recently released study from real estate resource Zillow, breaking down which cities are giving higher-earning rental households the most bang for their buck.

What a $100,000 annual income gets you (and what it doesn’t):

Nationally, the average renting household annual income is $58,000. So why focus on earning $100,000? One reason might be to point out the disparity between the average income and the affordability of the current rental market. Zillow references the standard of capping housing costs at 30% of gross monthly income — for the average household, that means just $1,450 should be allotted for rent. But nationally, the average rental unit costs $1,932 per month. The median rent (a figure used to account for the turnover of units) is around $1,750 — still well above the “affordable” level for the average renter household.

A household earning $100,000 however, can comfortably spend $2,500 per month on rent. And Zillow says nationally, an income that high means access to 77% of listed rentals, versus 31% available to the average renter. Such a margin unlocks “nearly 20% more living space, 63% more single-family homes, and slightly more housing density than the typical renter can access, meaning easier access to stores, schools, and public spaces.”

The type of housing available changes too — 30% of rentals available at a $100,000 annual income are single-family homes rather than apartments or condos (compared with just 19% for those earning the national average).

However, making big money often means living near big metropolitan areas where, of course, rents tend to be higher. According to the report, more than a few of the top 50 largest cities have average rents exceeding $2,500, shrinking the advantage of that $100,000 income compared to other markets. Families who rent are feeling that squeeze as well, considering that more people often require more space. And in the current market, rentals with more than two bedrooms are both in short supply and often require blowing past that advisable 30% of income spent on a housing budget.

The best rental value cities for households making $100,000:

So, if you're lucky enough to make six figures, which cities can you expect to give you more for your money?

The most affordable large city in the country overall is Oklahoma City, where the average rent is just $1,250. If you’re shopping at the high end of that $2,500 budget, you’ll find that 82.5% of your rental options offer three bedrooms or more. Compare that with the extremely pricey rental market of San Jose, California (average rent: $3,539), where that same $2,500 search will yield 77% of your options being one bedroom or smaller.

Here are the top ten best-value rental markets, which have the highest percentage of three-or-more-bedroom listings that $100,000 earners can afford:

1. Memphis, TN (86.3%)
2. Las Vegas, NV (83.7%)
3. Oklahoma City, OK (82.5%)
4. San Antonio, TX (82.1%)
5. Jacksonville, FL (76.8%)
6. Houston, TX (76.3%)
7. Raleigh, NC (73.8%)
8. Orlando, FL (69.6%)
9. Phoenix, AZ (68.2%)
10. Virginia Beach, VA (66.9%)

In the lowest rungs of the data, you’ll find coastal California cities like San Jose, San Diego and Los Angeles, where, at most, 2.1% of all affordable listings will have anything more than one bedroom.

“The variation we see in what a $100,000 income rents across markets is ultimately a supply story,” Treh Manhertz, a senior economic research scientist at Zillow, explains. “In markets that have built enough housing to meet demand, six figures rents real comfort and choice. In markets that haven’t, even high earners feel the squeeze.”

For a deeper breakdown, check out Zillow’s full article on renting with a $100,000 income here.