Study: Hoosier Renters Spend 30% of Income on Rent

(photo courtesy of Alexandria of Carmel Apartments)

According to a report by researchers at HireAHelper, U.S. renters spend more than 30% of their income on housing, compared to just 16.5% for homeowners. The report, which ranked the share of income U.S. renters spend on rent and utilities, found Hoosier renters spend a median 29.4% of their income on rent and utilities.

The city of Indianapolis was ranked No. 22 among cities with the highest share of income spent on rent. According to the report, renters in the Circle City spend slightly more than 32% of their monthly income on rent and utilities.

The report also ranked the city of Carmel No. 5 in a list of small cities with the lowest share of income going towards rent.

The report used data from the U.S. Census Bureau, which shows American renters spend a median 31% of income on housing, compared to just 16.5% for homeowners.

According to the report, renters in the Midwest tend to allocate the lowest proportion of their income toward housing costs. HireAHelper says the opposite is true for renters in states throughout the northeast, west coast, and south.

As for large cities with the highest share of income going towards rent, New Orleans topped the list at No. 1, with a reported 44% of income spent on rent and utilities. Miami and Baltimore rounded out the list’s top three at No. 2 and No. 3, respectively.

As for large cities with the lowest share of income going towards rent, San Francisco ranked No. 1 with 22% of a renter’s income spent on rent and utilities. The list also includes Virginia Beach, Virginia at No. 2 and Columbus, Ohio at No. 3.

You can access the full report by clicking here.