Tennessee renters spend 29.7% of their income on housing

Homeownership is becoming less and less attainable due to rising home prices. But while the cost of homeownership is high, renters often face an even heavier financial burden. New data from the Census Bureau shows that American renters spend a median 31.0% of income on housing, compared to just 16.5% for homeowners. These figures vary widely throughout cities and states across the country.

The high cost of rent impacts low-income renter households more than any other group. Over 75% of households with annual income below $50,000 per year spend 30% or more of their income on rent and utilities. Among renter households with an annual income below $20,000, almost 90% spend over 30% of their income on rent.

At the state level, the proportion of income spent on rent varies from a high of 35.6% in Louisiana to a low of 24.7% in North Dakota. Renters in the Midwest tend to allocate the lowest proportion of their income toward housing costs. The opposite is true for renters in states scattered throughout the Northeast, West Coast, and South. In Louisiana, Florida, California, and Rhode Island, the typical renter spends more than one-third of their monthly income on housing.

To identify the most unaffordable cities for renters, researchers analyzed the latest data from the U.S. Census Bureau American Community Survey (ACS). For each city, researchers calculated the median share of income allocated toward rent and utilities by dividing median gross rent by median household income for renters.

The analysis found that Tennessee renters spend a median 29.7% of their income on rent and utilities. Here is a summary of the data for Tennessee:

Median share of income spent on rent and utilities: 29.7%
Median monthly gross rent: $904
Median monthly household income for renters: $3,047
Median annual household income for renters: $36,565
Minority population: 26.0%

For reference, here are the statistics for the entire United States:

Median share of income spent on rent and utilities: 31.0%
Median monthly gross rent: $1,097
Median monthly household income for renters: $3,540
Median annual household income for renters: $42,479
Minority population: 38.9%

For more information, a detailed methodology, and complete results, you can find the original report on HireAHelper’s website.

Published October 30, 2020