Whether you are thinking about renting in retirement, helping a child or grandchild find a place, or simply keeping an eye on your own housing costs, here is something worth knowing. The salary you need just to afford a basic two-bedroom rental varies enormously depending on which state you call home.
Visual Capitalist crunched the numbers using a standard rule: you should spend no more than 30 percent of your income on rent. Based on that formula, the average salary needed to rent a two-bedroom home across the U.S. works out to about $70,000 a year.
That national average, though, tells only part of the story.
The States Where Rent Costs the Most
California and Hawaii are in a league of their own. They are the only two states where you need a six-figure salary just to rent a two-bedroom home. California tops the list at $103,200. Hawaii comes in just behind at $102,300.
New York, Massachusetts, and the District of Columbia round out the top five. Here is how they stack up:
| State | Salary Needed for a Two-Bedroom |
|---|---|
| California | $103,200 |
| Hawaii | $102,300 |
| New York | $95,700 |
| Massachusetts | $95,500 |
| District of Columbia | $92,600 |
These five also happen to be the top five states for overall cost of living in the country, though not in quite the same order.
Cities drive much of the pain. A May 2026 Zillow report found that six of the ten most expensive rental markets in the country were in California. San Jose was the priciest, with a typical monthly rent of $3,625. New York City was second at $3,503 a month. Boston, San Diego, and Miami all tied with San Jose for the fewest rentals under $1,000, just 0.4 percent of listings in each market.
The States Where Rent Is Still Manageable
If your budget is tight, the Midwest and parts of the South look a lot friendlier. South Dakota and West Virginia tie for the most affordable, each requiring a salary of just $39,400. Arkansas is close behind at $39,500.
| State | Salary Needed for a Two-Bedroom |
|---|---|
| South Dakota | $39,400 |
| West Virginia | $39,400 |
| Arkansas | $39,500 |
| North Dakota | $40,500 |
| Iowa | $41,600 |
These five states are also the only ones in the country where you can earn under $20 an hour and still afford a two-bedroom rental. West Virginia is the most affordable by that measure; you need to earn just $18.94 an hour. South Dakota sits at $18.96, and Arkansas at $18.98.
More Renters Are Feeling the Squeeze
The National Low Income Housing Coalition reports that a renter needs to earn $33.63 an hour to afford a typical two-bedroom home in the U.S. For a one-bedroom, it drops to $28.17 an hour. The problem is that most jobs do not pay that much; 18 of the 25 most common jobs in the country fall below the two-bedroom threshold.
The result? More and more people are cost-burdened. Researchers at Harvard’s Joint Center for Housing Studies found that in 2023, more than 22 million renters were spending over 30 percent of their income on rent and utilities. That is 2.2 million more renters in that situation than just four years earlier.
Florida has the highest share of rent-burdened residents of any state, with about 60 percent of renters spending at least 30 percent of their income on housing. California, Hawaii, and Nevada are close behind; at least 53 percent of renters in each of those states are feeling the same pressure.
If you are renting now or thinking about it, these numbers are worth keeping in mind as you plan your budget and your next move.
