We don’t hear quite as much about the 30% rule now as we used to, but it’s still a recommended way of financial planning. The rule is simple: Spend no more than 30% of your monthly income on your mortgage or rent payments. Simple, yes, but attainable? Not for most in a climate of soaring rent prices. A 2024 Redfin study found that more than 20% of Americans are spending 100% of their paychecks on rent.
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It’s not doable for everybody in every U.S. city, but there are some cities where locals in the bottom percentile of middle-class earners can get away with spending 30% or less of their income on rent. The South, generally more affordable than most other U.S. regions, has an abundance of options. In a new study, GOBankingRates analyzed cities in the South 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 holds onto the most money post-rent.
12. Cinco Ranch, Texas
- Average rent, monthly: $2,040
- Average rent, annually: $24,482
- Minimum middle-class income, annually: $104,930
- 30% of the minimum middle-class income: $31,479
- Leftover savings after 30% income pays rent: $6,997
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11. Madison, Alabama
- Average rent, monthly: $1,599
- Average rent, annually: $19,184
- Minimum middle-class income, annually: $87,624
- 30% of the minimum middle-class income: $26,287
- Leftover savings after 30% income pays rent: $7,103
10. New Market, Maryland
- Average rent, monthly: $2,708
- Average rent, annually: $32,493
- Minimum middle-class income, annually: $132,053
- 30% of the minimum middle-class income: $39,616
- Leftover savings after 30% income pays rent: $7,123
9. Fulshear, Texas
- Average rent, monthly: $2,341
- Average rent, annually: $28,094
- Minimum middle-class income, annually: $118,932
- 30% of the minimum middle-class income: $35,680
- Leftover savings after 30% income pays rent: $7,586
8. Great Falls, Virginia
- Average rent, monthly: $3,488
- Average rent, annually: $41,850
- Minimum middle-class income, annually: $166,667
- 30% of the minimum middle-class income: $50,000
- Leftover savings after 30% income pays rent: $8,150
7. Fort Washington, Maryland
- Average rent, monthly: $1,708
- Average rent, annually: $20,497
- Minimum middle-class income, annually: $97,295
- 30% of the minimum middle-class income: $29,188
- Leftover savings after 30% income pays rent: $8,692
6. Hudson Oaks, Texas
- Average rent, monthly: $1,581
- Average rent, annually: $18,968
- Minimum middle-class income, annually: $92,333
- 30% of the minimum middle-class income: $27,700
- Leftover savings after 30% income pays rent: $8,732
5. Prosper, Texas
- Average rent, monthly: $2,250
- Average rent, annually: $27,004
- Minimum middle-class income, annually: $125,069
- 30% of the minimum middle-class income: $37,521
- Leftover savings after 30% income pays rent: $10,516
4. Keller, Texas
- Average rent, monthly: $1,972
- Average rent, annually: $23,660
- Minimum middle-class income, annually: $115,103
- 30% of the minimum middle-class income: $34,531
- Leftover savings after 30% income pays rent: $10,871
3. Bellaire, Texas
- Average rent, monthly: $2,767
- Average rent, annually: $33,199
- Minimum middle-class income, annually: $157,541
- 30% of the minimum middle-class income: $47,262
- Leftover savings after 30% income pays rent: $14,064
2. Chevy Chase, Maryland
- Average rent, monthly: $2,843
- Average rent, annually: $34,113
- Minimum middle-class income, annually: $166,667
- 30% of the minimum middle-class income: $50,000
- Leftover savings after 30% income pays rent: $15,887
1. McLean, Virginia
- Average rent, monthly: $2,800
- Average rent, annually: $33,601
- Minimum middle-class income, annually: $166,667
- 30% of the minimum middle-class income: $50,000
- Leftover savings after 30% income pays rent: $16,399
Methodology: For this study, GOBankingRates analyzed cities in the Southern U.S. 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 Sperling’s 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 July 22, 2025.
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This article originally appeared on GOBankingRates.com: 12 Southern Cities Where Rent Costs 30% or Less of a Middle-Class Income
