In today’s rental landscape, what used to be considered a six-figure milestone salary is now the bare minimum to afford rent in many American cities. A new analysis from Zillow Group reveals that the number of markets where renters must earn at least $100,000 per year to comfortably afford a typical rental has doubled since 2020.
This shift reflects a growing affordability crisis across the U.S., where rent increases have far outpaced income growth creating financial strain for renters and challenging decisions for landlords and property managers alike.
The New Reality: $100K Just to Rent Comfortably
The typical U.S. renter now needs to earn about $80,949 per year to stay below the 30% rent-to-income threshold a sharp rise from roughly $60,000 just five years ago.
In other words, even renters with stable, middle-class incomes are feeling squeezed. Renters who once had breathing room for savings or emergencies are now spending a third (or more) of their income just to keep a roof over their heads.
The Zillow report highlights how the cost of housing has surged faster than wages since the pandemic began. And while incomes have grown 22.5% since 2020, the median U.S. rent has climbed by 28.7% for apartments and a staggering 42.9% for single-family rentals.
The Data Breakdown: Rising Rents Outpacing Paychecks
Let’s take a closer look at the numbers behind this growing divide:
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Typical U.S. rent: $1,858 per month (up 28.7% since 2020)
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Typical single-family rent: $2,256 per month (up 42.9%)
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Median household income: $82,842 (up only 22.5%)
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Markets requiring six-figure incomes: 8 major metros in 2025, compared to just 4 in 2020
Zillow’s economists warn that this imbalance is making it increasingly difficult for renters to save for homeownership a key component of long-term financial stability.
“Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages,” said Orphe Divounguy, senior economist at Zillow. “This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment.”
Where Renting Now Requires $100K+ Income
Several U.S. metros have crossed the six-figure line for rent affordability. Here’s a snapshot of where it’s hardest to rent without a high income:
| City / Metro | Annual Income Needed to Afford Rent |
|---|---|
| New York, NY | $144,960 |
| San Jose, CA | $136,532 |
| Boston, MA | $127,007 |
| San Francisco, CA | $123,738 |
| San Diego, CA | $119,913 |
| Los Angeles, CA | $115,024 |
| Washington, D.C. | $105,000 |
| Seattle, WA | $102,000 |
In these metros, renters earning less than $100K often exceed the 30% rule meaning they are considered “rent-burdened.”
By contrast, in more affordable markets such as Buffalo, Oklahoma City, and Louisville, renters need just over $55,000–$56,000 annually to stay within budget, spending closer to 23% of their income on rent.
The Broader Impact: A Generation of Renters Under Pressure
The affordability gap has major implications, especially for younger generations and working families:
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Delayed Homeownership: With savings squeezed by rent, fewer renters can afford down payments, pushing homeownership further out of reach.
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Reduced Mobility: High rents discourage relocation to new cities or job markets, limiting economic opportunity.
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Increased Financial Stress: Spending more than 30% of income on housing leaves less for essentials like food, healthcare, and transportation.
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Changing Lifestyle Choices: Many renters are downsizing, taking on roommates, or relocating to smaller metros in search of affordability.
For property managers and landlords, these shifts translate into a need for strategic pricing, empathy, and long-term tenant engagement.
What This Means for Property Managers and Landlords
Rising rents may seem like good news for investors on paper but the affordability ceiling poses real operational risks. When renters hit their financial limit, turnover increases and payment reliability decreases.
Here’s how property owners and managers can adapt:
1. Balance Rent Growth with Retention
Rather than pushing rents to market highs, focus on stability. Offering competitive rates, renewal incentives, and minor upgrades can reduce turnover and protect long-term occupancy.
2. Offer Flexible Lease Options
Month-to-month extensions, shared leases, or co-living models can appeal to renters seeking flexibility without major financial strain.
3. Monitor Market Data Regularly
Use regional rent data and income trends to guide pricing decisions. For example, tracking how “income needed to afford rent” changes each quarter can help you anticipate affordability thresholds.
4. Improve Communication
Transparent, proactive communication about rent increases including the reasoning and data behind them helps build trust and minimizes conflict.
5. Explore Community Partnerships
In high-cost areas, landlords can collaborate with housing programs or local nonprofits that assist with rent subsidies or tenant education, helping sustain occupancy rates while supporting residents.
Affordability Strategies Moving Forward
The housing affordability crisis isn’t a short-term blip it’s a structural shift that demands creativity and collaboration. Some strategies gaining traction include:
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Mixed-income developments: Encouraging a blend of market-rate and affordable units.
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Incentivized rent programs: Offering loyalty rewards or referral credits for tenants who renew.
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Smart tech for efficiency: Using digital maintenance systems, self-guided tours, and energy-saving amenities to cut costs and add value.
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Localized rent analysis: Adjusting pricing at the neighborhood level rather than using city-wide averages.
At MyOnsiteManager, staying ahead of these market realities is key to supporting both property owners and residents. As rents rise, the focus must shift toward sustainable affordability ensuring properties remain desirable, accessible, and financially viable for the long term.
Final Thoughts
The fact that a six-figure salary is now required just to rent comfortably in several U.S. cities is a wake-up call. Affordability is no longer a low-income issue it’s a mainstream challenge affecting middle-class Americans from coast to coast.
For renters, it underscores the need for financial literacy and planning. For landlords and managers, it’s a call to innovate balancing profitability with compassion, and recognizing that long-term success depends on keeping housing within reach for the people who make cities thrive.