Where Retirees Can (And Can’t) Afford to Rent on Retirement Income [2026]

As rising rental markets collide with fixed retirement incomes, affordability has become a significant concern for older Americans seeking long-term housing options.

While rentals offer flexibility, more manageable housing sizes, and most importantly, less of a long-term financial commitment, that doesn't mean renting is cheap.

With rent prices increasing in many areas nationwide, many retirees are facing the reality that housing in many places is cost-prohibitive, forcing difficult conversations about where and how they can afford to live.

To find where retiree renters face the most pressure, the FinanceBuzz research team compared average rent prices in every state with income data for Americans 65 and older, and found the percentage of income needed to afford housing in every state in the U.S.

The results show that in some parts of the country, retirees may need to consider downsizing, relocating, or even finding a roommate to remain financially secure.

Key findings

• The median rent price in America is $1,487, while the median monthly income of Americans 65 and older is $4,971. This equates to 29.9% of retiree income going to gross rent.
• Overall, 49% of Americans are "cost-burdened" by their rent, meaning they pay more than 30% of their income toward rent.
• Rent prices exceed the 30% income threshold, on average, in 11 states.
• Florida (36.2%), California (35.2%), and Washington D.C. (32.8%) are the most unaffordable states for retirees to rent.
• Wyoming, South Dakota, and North Dakota are the most affordable states to rent for Americans aged 65 and older, relative to income.

States where rent is the least affordable for retirees

Financial experts, including our editors, typically recommend spending no more than 30% of your income on housing. Go beyond that threshold, and you're considered "cost-burdened," meaning less room in your budget for essentials like healthcare, food, and transportation.

In the following states, average rent consumes more than 30% of the typical retiree's monthly income.

1. Florida: 36.2%

• Median rent: $1,812
• Monthly income: $5,000
• Rent to income percentage: 36.2%

2. California: 35.2%

• Median rent: $2,104
• Monthly income: $5,973
• Rent to income percentage: 35.2%

3. Washington D.C.: 32.8%

• Median rent: $1,931
• Monthly income: $5,889
• Rent to income percentage: 32.8%

4. New York: 32.7%

• Median rent: $1,634
• Monthly income: $4,992
• Rent to income percentage: 32.7%

5. Colorado: 32.5%

• Median rent: $1,822
• Monthly income: $5,610
• Rent to income percentage: 32.5%

6. Georgia: 32.2%

• Median rent: $1,506
• Monthly income: $4,668
• Rent to income percentage: 32.2%

7. Nevada: 32.2%

• Median rent: $1,709
• Monthly income: $5,307
• Rent to income percentage: 32.2%

8. Massachusetts: 32.1%

• Median rent: $1,848
• Monthly income: $5,758
• Rent to income percentage: 32.1%

9. Arizona: 32.1%

• Median rent: $1,672
• Monthly income: $5,215
• Rent to income percentage: 32.1%

10. Oregon: 31.7%

• Median rent: $1,597
• Monthly income: $5,034
• Rent to income percentage: 31.7%

11. Washington: 31.7%

• Median rent: $1,824
• Monthly income: $5,751
• Rent to income percentage: 31.7%

In total, 11 states plus Washington, D.C. exceed the 30% affordability rule, meaning retirees in these areas are officially cost-burdened by housing.

Where rent is most affordable for retirees

On the other end of the spectrum, several states keep senior housing costs comfortably below 25% of income.

1. Wyoming: 19.7%

• Median rent: $998
• Monthly income: $5,056
• Rent to income percentage: 19.7%

2. South Dakota: 19.9%

• Median rent: $999
• Monthly income: $5,014
• Rent to income percentage: 19.9%

3. North Dakota: 20.4%

• Median rent: $980
• Monthly income: $4,809
• Rent to income percentage: 20.4%

4. Iowa: 20.9%

• Median rent: $981
• Monthly income: $4,702
• Rent to income percentage: 20.9%

5. Kansas: 22.7%

• Median rent: $1,079
• Monthly income: $4,763
• Rent to income percentage: 22.7%

6. West Virginia: 23.2%

• Median rent: $883
• Monthly income: $3,815
• Rent to income percentage: 23.2%

7. Alaska: 23.3%

• Median rent: $1,444
• Monthly income: $6,192
• Rent to income percentage: 23.3%

In these states, retirees typically spend closer to 20-25% of their income, leaving more for essential spending.

Why the 30% rule matters more in retirement

Unlike working-age renters, retirees usually don't have the option of increasing their income to offset rising housing costs. Many rely heavily on Social Security, pensions, or retirement savings, which all have limits.

When housing costs climb above 30% of income, retirees may have to make difficult trade-offs, such as:

• Delaying medical care
• Cutting back on groceries
• Skipping insurance coverage
• Drawing down savings faster than planned

In higher-cost states like Florida and California, where rent can consume more than a third of income, seniors may need to consider downsizing, relocating to a more affordable state, or sharing housing to maintain financial stability.

Of note, prices tend to balloon in major cities, drawing some retirees further toward suburbs or rural areas where costs may be more affordable.

Full data: Rent as a percentage of retirement income in every state

Below, find a list of the raw data for this report, listing median rent price, median income for Americans aged 65 and older, a monthly conversion of their income, and the percentage of income made up by rent.

Bottom line

Just because you scale back your spending as you scale back work doesn't mean your expenses will come to a complete halt in retirement. Between everyday costs of living, medical expenses, and even taxes in retirement, seniors have a duty to themselves and their families to keep in good financial shape. Looking for inspiration on how? Check out a few tips on keeping up with your finances in retirement.

• Take advantage of bank accounts built for retirement. Just because your income may slow down, it doesn't mean your money has to stop growing. Look into some of the best bank accounts for seniors to keep your hard-earned retirement funds secure and fee-free.
• Earn rewards even as a retiree. Responsible credit card usage can be a powerful financial tool for retirees and seniors alike. Applying for one of the best credit cards for seniors can supercharge spending power and add the perks of points and rewards to one's budget.
• Save for retirement as soon as possible. Saving for retirement is the number one proactive step to make in providing for your financial future. More time saving means more time investing and letting interest compound, keeping you afloat even during market uncertainty. That said, every bit you can save is helpful, even if you're starting later.
• Budget your money. Check out our list of the best budgeting apps and start taking a more active role in your finances.

Methodology

To compile the data shown above on rent prices in retirement, our research team analyzed U.S. Census American Community Survey data (specific to 2024, the most recent year available) and found two distinct data points:

1. Median income for Americans aged 65+ in every state.
2. Median gross rent prices in every state.

We calculated monthly income by dividing median annual income by 12, then determined what percentage of that monthly income would be spent on the median rent in each state. Of note, we compiled data for all rental units, not necessarily studio or one-bedroom units, which may be less expensive.

Learn More

5.0

FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.

AWARD WINNER Best Online Checking

High APY of up to 4.00% on Savings (3.30% APY¹ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at&nbsp;<a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for up to 6 Months on new accounts. Terms Apply.² <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 3/30/2026. Rates variable, subject to change. Terms apply at&nbsp;<a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p>

Paycheck access up to 2 days early with direct deposit³ <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>

No monthly maintenance or overdraft fees⁴ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>

Streamlined savings and savings goals with Vaults

Access to a large ATM network⁵ <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.</p>