Plenty of financial experts both past and present insist that you should never put more than 30% of your income toward rent. This once was not a terribly tough rule to live by, but now, with costs of living and, specifically, costs of housing soaring across the U.S. (and wages not keeping up), spending only 30% of your income on housing is just not realistic for many. Not even close. A 2024 Redfin study found that more than 20% of Americans are spending their entire paychecks on rent.
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But there are some cities, including in the Midwest, where folks in the bottom percentile of middle-class earners can spend 30% or less of their income on average local rent. In a new study, GOBankingRates analyzed cities in the Midwest to find those where rent costs less than 30% of the minimum household income required to be middle class.
Take a look at the top 12, where the middle class have the most money remaining after covering rent.
12. Powell, Ohio
- Average rent, monthly: $2,479
- Average rent, annually: $29,746
- Minimum middle class income, annually: $127,500
- 30% of the minimum middle class income: $38,250
- Leftover savings after 30% of income pays rent: $8,504
11. Northville, Michigan
- Average rent, monthly: $1,672
- Average rent, annually: $20,061
- Minimum middle class income, annually: $95,917
- 30% of the minimum middle class income: $28,775
- Leftover savings after 30% of income pays rent: $8,714
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10. Carlisle, Iowa
- Average rent, monthly: $825
- Average rent, annually: $9,900
- Minimum middle class income, annually: $65,555
- 30% of the minimum middle class income: $19,667
- Leftover savings after 30% of income pays rent: $9,767
9. Zionsville, Indiana
- Average rent, monthly: $1,705
- Average rent, annually: $20,455
- Minimum middle class income, annually: $106,084
- 30% of the minimum middle class income: $31,825
- Leftover savings after 30% of income pays rent: $11,370
8. Leawood, Kansas
- Average rent, monthly: $2,046
- Average rent, annually: $24,548
- Minimum middle class income, annually: $123,317
- 30% of the minimum middle class income: $36,995
- Leftover savings after 30% of income pays rent: $12,447
7. Parkville, Missouri
- Average rent, monthly: $1,750
- Average rent, annually: $20,998
- Minimum middle class income, annually: $113,863
- 30% of the minimum middle class income: $34,159
- Leftover savings after 30% of income pays rent: $13,161
6. Bloomfield Hills, Michigan
- Average rent, monthly:
- Average rent, annually:
- Minimum middle class income, annually:
- 30% of the minimum middle class income:
- Leftover savings after 30% of income pays rent:
5. Winnetka, Illinois
- Average rent, monthly: $1,825
- Average rent, annually: $21,900
- Minimum middle class income, annually: $128,547
- 30% of the minimum middle class income: $38,564
- Leftover savings after 30% of income pays rent: $16,664
4. Victoria, Minnesota
- Average rent, monthly: $1,988
- Average rent, annually: $23,858
- Minimum middle class income, annually: $137,157
- 30% of the minimum middle class income: $41,147
- Leftover savings after 30% of income pays rent: $17,289
3. Lake Bluff, Illinois
- Average rent, monthly:
- Average rent, annually:
- Minimum middle class income, annually:
- 30% of the minimum middle class income:
- Leftover savings after 30% of income pays rent:
2. Ladue, Missouri
- Average rent, monthly: $2,362
- Average rent, annually: $28,340
- Minimum middle class income, annually: $166,667
- 30% of the minimum middle class income: $50,000
- Leftover savings after 30% of income pays rent: $21,660
1. New Albany, Ohio
- Average rent, monthly: $1,753
- Average rent, annually: $21,035
- Minimum middle class income, annually: $155,016
- 30% of the minimum middle class income: $46,505
- Leftover savings after 30% of income pays rent: $25,469
Methodology. For this study, GOBankingRates analyzed cities in the Midwest to find the cities where rent costs less than 30% of the middle class household income. The average rent cost was sourced from Zillow Observed Rental Index for June 2025. Pew Research Center defines middle class income as two-thirds to double the median household income. Using the U.S. Census American Community Survey, the median household income for cities was sourced and used to calculate the middle class income range. Using the finance rule that states that housing costs should cost under 30% of household income, the minimum middle class income threshold was used to calculate the average 30% of household income in each city. The cities with leftover savings after 30% of income covers all of the rent were kept for this study. The cost of living indexes were sourced from Sperlings BestPlaces. Using the average expenditure costs for all households, as sourced from Bureau of Labor Statistics Consumer Expenditure Survey for all households, the average expenditure costs can be calculated for each city. Using the average expenditure costs and rental costs, the average total cost of living for renters was calculated for each city. The livability index was sourced from AreaVibes and included as supplemental information. The cities were sorted to show the largest leftover savings after 30% of household income covers the cost of rent. All data was collected on and is up to date as of Jul. 22, 2025.
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This article originally appeared on GOBankingRates.com: 12 Midwest Cities Where Rent Costs 30% or Less of a Middle-Class Income
