New research from Forbes Home has found the states that are spending the least percentage of their income on rent, with Iowa coming in eighth nationally.
The study by moving experts at Forbes Home analyzed data from the U.S. Bureau of Economic Analysis and the U.S. Department of Housing & Urban Development to see in which states residents were spending the smallest percentage of income on rent.
They found that South Dakota residents are spending the least out of their income on rent. The latest statistics show that the average yearly income in the state is $64,462, and the average monthly income is $5,372. With the average monthly rent for all size homes being $871, South Dakota residents are spending just 16.21% of their income on rent on average, the lowest of any state.
The state of Iowa took eighth in the Forbes Home study, with an average of 18.23% of income going towards rent. This is based on an average annual income of $57,163 in the state, which equals a monthly income of $4,764, and an average monthly rent for all rentable homes sitting at $868.
Illinois takes second place on the list, with an average of 16.37% of income going toward rent. This is based on an average annual income of $67,244, which equates to an average monthly income of $5,604, compared to the average monthly rent being $918 for all rentable homes.
Taking third place on the Forbes Home list is Nebraska, where the state’s residents spend roughly 16.89% of their income on rent on average. According to research, the state’s average monthly income is $5,100 – $61,205 per year – with $861 of this going towards rent every month.
Coming in fourth place on the list is the state of North Dakota. The state came in with an average income of $5,377 per month and $64,524 per year, respectively. With the average monthly rent sitting at $923 in the state, 17.16% of income goes towards rent, the fourth lowest in the top ten.
Rounding out the top five is the state of Wyoming, with 17.53% of income going towards rent. This is due to the state having an average yearly income of $69,666, the highest in the top ten, which works out at a monthly income of $5,806 and an average monthly rent of $1,018.
The study was conducted by Forbes Home, whose editorial team has decades of experience in the personal finance industry.