Rent-to-Income Ratios Trend Down in Market-Rate Apartments

Across the nation’s market rate apartments, rent-to-income ratios have ticked down over the last couple months to stand firmly below 23%. Rent-to-income ratios, tracked on a trailing 12-month basis, ticked below 23% in October 2023 – at approximately the same time that conventional rent growth stagnated nationwide – and registered at 22.7% as of June, according to data from RealPage Market Analytics. While that ratio varies across markets, Midwest markets such as Detroit and Chicago, along with Pittsburgh claim among the lowest in the nation. Alternatively, two California markets – Riverside and San Diego – claim the highest rent-to-income ratios in the nation as of June. Meanwhile, average monthly incomes on executed leases (which would include all income for a unit, such as dual-income roommates or couples) nearly hit $8,800 in June, translating to a little over $105,000 per year.