Cheapest States to Rent in 2026

The 10 Most Affordable States by FMR

The ranking below is based on the statewide average two-bedroom Fair Market Rent, calculated across all counties in each state. We use the two-bedroom FMR because it's the baseline unit size HUD uses for its calculations. You can explore individual county data on our state pages.

1. Mississippi. Average two-bedroom FMR around $924/month. Mississippi consistently ranks as the cheapest state for renters, driven by low population density and limited economic pressure on housing markets. The state also has the lowest median household income in the US, which affects rent affordability ratios even at these low rents.

2. Alabama. Average two-bedroom FMR around $936/month. Alabama's rents are kept low by a combination of moderate growth, relatively permissive zoning, and lower construction costs. The state has pockets of higher rents around Huntsville (growing rapidly due to defense and tech jobs) while rural areas remain very affordable.

3. Arkansas. Average two-bedroom FMR around $944/month. Arkansas benefits from low construction costs, a relatively rural population distribution, and modest growth pressure. Even the state's largest metro, Little Rock, remains affordable compared to national benchmarks.

4. West Virginia. Average two-bedroom FMR around $945/month. With a declining population and abundant older housing stock, supply outpaces demand in most areas. The state's economy is transitioning away from coal, which keeps housing pressure low. Look up specific West Virginia county FMRs on PlainRent.

5. Kansas. Average two-bedroom FMR around $947/month. Kansas offers stable, low rents across most of the state. The Wichita and Kansas City (Kansas side) metros provide job access at moderate rents, while smaller cities and rural areas are even cheaper.

6. North Dakota. Average two-bedroom FMR around $965/month. North Dakota combines low rents with an energy-anchored economy; Fargo and Bismarck offer urban amenities at rents well below the national average.

7. Missouri. Average two-bedroom FMR around $972/month. Missouri's two major metros (Kansas City and St. Louis) offer urban amenities at a fraction of coastal costs. Rural Missouri is even cheaper. The state's central location and diversified economy add to its appeal. Check out Missouri FMRs by county.

8. Kentucky. Average two-bedroom FMR around $984/month. Kentucky's rental market is split between the faster-growing Louisville and Lexington metros and the more affordable eastern and western parts of the state. Statewide, it remains one of the cheapest places to rent.

9. Iowa. Average two-bedroom FMR around $989/month. Iowa balances low rents with a strong economy and low unemployment. Des Moines regularly appears on "best value" city lists, offering white-collar job opportunities with housing costs far below the national average.

10. South Dakota. Average two-bedroom FMR around $990/month. South Dakota's combination of low rents and no state income tax can make it particularly attractive. Sioux Falls, the state's largest city, has grown rapidly but rents have remained moderate relative to wage growth.

What Drives Low Rents?

Cheap rent isn't random. Several structural factors explain why some states consistently sit at the bottom of the rent scale:

• Population dynamics. States losing population or growing very slowly, like West Virginia and Mississippi, have less demand pressure on housing. When more people leave than arrive, landlords compete for tenants rather than the other way around.
• Abundant land and permissive zoning. States with low population density and fewer regulatory barriers to construction can add housing supply more easily, preventing the supply crunches that drive rents up in constrained markets like California or New York.
• Lower construction costs. Labor, materials, and land all cost less in these states, which means new housing can be profitably built at lower rent points.
• Economic structure. States anchored by agriculture, energy, or manufacturing tend to have lower wages and correspondingly lower rents. The housing market adjusts to what local workers can afford.

The Affordability Trap: Cost vs. Income

Here's the critical nuance that raw rent figures miss: cheap rent doesn't automatically mean affordable living.

HUD defines "rent-burdened" as spending more than 30% of gross household income on housing. By this measure, a $700/month rent is affordable at a household income of $28,000/year. But if median income in a cheap state is $40,000 compared to $70,000 in an expensive state, the person in the cheap state might actually be spending a similar share of their income on housing.

For example, Mississippi has some of the cheapest rents in the country, but also the lowest median household income at roughly $55,000. The resulting rent-to-income ratio isn't dramatically better than in some mid-cost states with higher wages. That is why the rent-burden rankings - which weigh FMR against local median income, often tell a different story than a raw list of the cheapest rents.

When evaluating a potential move, compare the rent-to-income ratio, not just the rent:

• What jobs are available in your field in the cheaper state?
• Can you work remotely and keep your current income?
• What's the cost of other essentials, healthcare, groceries, transportation, childcare?
• What's the state income tax rate? (Some cheap states offset low rents with higher taxes; others like South Dakota have no income tax.)

Trade-Offs of Living in Low-Rent States

Every affordable state comes with trade-offs worth considering before relocating:

• Job market depth. Low-rent states typically have smaller, less diverse job markets. If you lose a job, finding another in the same field may require relocation.
• Public services. States with lower tax bases may have less-funded schools, infrastructure, and public services. Check school ratings, road conditions, and public transit availability.
• Healthcare access. Rural areas in cheap states often have fewer hospitals, specialists, and healthcare providers. Proximity to quality healthcare matters, especially for families.
• Economic mobility. Some cheap states have lower rates of upward economic mobility. If career advancement matters, research the trajectory for your industry in the area.
• Climate and natural risks. Some affordable states have higher exposure to tornadoes, flooding, or extreme heat. Factor in insurance costs, which can partially offset rent savings.

Where Remote Workers Win

The rise of remote work has changed the calculus dramatically. If you can earn a coastal salary while living in a low-rent state, the economics become compelling. A remote worker earning $80,000 in West Virginia keeps far more of their income than they would in the Bay Area or New York metro.

States that combine low rents with livable amenities, like Iowa, Kansas, and Oklahoma, are particularly attractive for remote workers. They offer reliable internet in metro areas, reasonable access to airports, and a low cost of living that stretches a remote salary.

Browse our full county rankings to find the specific areas with the lowest FMRs, or explore individual state pages to compare counties within a state.

Frequently Asked Questions

What is the cheapest state to rent in 2026?

Based on HUD Fair Market Rent data, Mississippi consistently has the lowest average FMRs in the nation. Its statewide average two-bedroom FMR is around $924/month, compared to a national average of roughly $1,175. Alabama, Arkansas, West Virginia also rank among the cheapest states.

Why are some states so much cheaper to rent in?

Low rents are driven by a combination of factors: lower population density, slower job market growth, lower cost of construction, less restrictive zoning, and in some cases population decline. States with abundant available housing relative to demand tend to have the lowest rents.

Should I move to a cheap state just for lower rent?

Rent alone shouldn't drive a relocation decision. The cheapest states often have lower wages, fewer job opportunities, and limited public services. You need to compare rent savings against potential income changes. A state where rent is 40% cheaper but wages are 30% lower may not actually save you money.

Does Fair Market Rent reflect what I'll actually pay?

FMR represents the 40th percentile of rents, so about 60% of units will cost more. However, FMRs include utilities, which listings typically don't. FMRs are useful for comparing relative affordability between states and areas, even if the exact dollar amount differs from current listings.

How much does the average American spend on rent?

According to Census Bureau data, the median gross rent in the U.S. is approximately $1,400/month as of 2024. However, this varies enormously by location, from under $600 in the cheapest rural counties to over $3,000 in expensive coastal metros. The standard affordability guideline is spending no more than 30% of gross income on housing.