Living in a major city like San Francisco requires an income that’s double the average American salary, according to a May analysis by Moody’s Analytics.
U.S. News and World Report has published its list of the most affordable cities in the U.S., evaluating them based on median gross rent and annual housing costs for homeowners with mortgages. The rankings were derived from data from the U.S. Census Bureau, the FBI, and the U.S. Department of Labor, and were assessed across four indexes:
- Quality of Life: Resident satisfaction with daily life
- Value: How well residents can live within their means
- Desirability: Popularity of the cities among potential residents
- Job Market: Strength of the job market in each city
Each category was rated on a scale of 0-10.
Fort Wayne, Indiana, emerged as the most affordable city in the U.S. with an overall score of 6.6. The city scored 6.5 for quality of life and 8.2 for value. Located in northeastern Indiana near Ohio and Michigan, Fort Wayne is the state’s second-largest city. It has seen a significant revitalization effort to enhance its downtown and riverfront areas.
The cost of living in Fort Wayne is 1% below the state average and 9% below the national average, according to RentCafe. As of July 2024, the average annual salary is $50,720, with most incomes ranging from $34,342 to $65,478. Median rent is $1,200, and the average home value is $234,244, a 6.6% increase over the past year.
The top 10 most affordable places to live in the U.S. are:
- Fort Wayne, IN
- Huntsville, AL
- Wichita, KS
- Springfield, MO
- Davenport, IA
- Hickory, NC
- Montgomery, AL
- Green Bay, WI
- Little Rock, AR
- Oklahoma City, OK
Huntsville, Alabama, is the second most affordable city, with an overall score of 6.8, a quality of life score of 6.6, and a value score of 8.1. A July report from LendingTree highlighted Huntsville as the best-overlooked metro area for homeownership, with a homeownership rate of 70.46%. The median home value is $292,700, and the median annual property taxes for a mortgaged home are $963. The city’s median rent is $863 per month for a one-bedroom apartment. Huntsville’s cost of living is 8% lower than the national average, and housing costs are 25% lower, according to PayScale. The city is also recognized for its favorable rental market and has a strong association with the U.S. space program.
