11 U.S. Cities Where Renters Need to Earn More than $100,000

For many people across the United States, rent takes a big part of their income. New data shows that in some major cities, renters need to make over $100,000 a year just to comfortably afford their homes. This is a big challenge for many households.

This news piece looks at recent information from the Waller, Weeks, and Johnson Rental Index. We will list the 11 U.S. cities where the minimum income needed to pay rent is higher than $100,000. This highlights how costly living can be in these areas.

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Key Takeaways: High Rent Income Needed (May 2025)

• Six-Figure Income for Rent: In 11 U.S. cities, you need to earn more than $100,000 per year to avoid spending too much on rent.

• Coastal Cities Dominate: Most of these cities are on the East and West Coasts. These areas often have very strong job markets. 6 markets are in California alone.

• High Demand, Low Supply: High housing costs in these cities are often due to many people wanting to live there but not enough homes available.

• Impact on Renters: These high costs make it hard for many to save money or afford other basic needs.

What Does “Affordable Rent” Mean in Today’s Market?

The Waller, Weeks, and Johnson Rental Index studies rent costs in 100 big U.S. cities each month. It also tracks “affordability.” This means the yearly income a household needs so that rent doesn’t take up more than 30% of their money. If housing costs more than 30% of income, a household is “rent-burdened.” This can make it hard to pay for food, healthcare, and other important needs.

The latest report, from May 2025, shows that in some cities, even a very good income can be stretched thin by rent payments.

Related: Top 10 U.S. Cities Where Rents Are Getting More Expensive the Fastest

11 U.S. Cities Where Renters Need to Earn Over $100,000

Here are the U.S. metro areas where renters need the highest annual income to avoid being rent-burdened, based on the Waller, Weeks, and Johnson Rental Index for May 2025. This list is ranked from the highest required income to the lowest.

(Source: Waller, Weeks, and Johnson Rental Index, data as of April 2025, via American Real Estate Society)

What This List Shows:

• Coastal Living is Costly: Most of these cities are located on the East and West Coasts. These areas are known for high demand and limited land for building new homes.

• Major Economic Hubs: These cities are often major centers for jobs, technology, and culture. This draws many people, but housing supply struggles to keep up.

• Challenges for Renters: In these cities, a large portion of a person’s income must go towards rent. This makes it hard to save money, buy a home, or cover other living costs.

Related: 4 Cities Where Rents Are Falling Fastest in 2025

Why Rents Are So High in These Cities

Several key factors push rents so high in these U.S. cities:

• Strong Job Markets: These cities often have many high-paying jobs. This attracts a lot of people looking for work.

• Limited Housing Supply: It’s often hard to build new homes in these areas. This can be due to strict building rules, lack of land, or high construction costs. When there aren’t enough homes for everyone, prices go up.

• High Demand: Many people want to live in these cities because of their job opportunities, culture, and lifestyle. This strong demand drives up both rental and home prices.

• Population Density: These cities are often very crowded. More people in a small area means more competition for available housing.

• Investment Appeal: These markets can also attract real estate investors, which can further impact prices.

Understanding these reasons helps explain why living in these cities comes with such high rental costs.

Related: Top 20 Most Affordable U.S. Cities for Renters in 2025

Conclusion: Navigating High-Cost Rental Markets

The Waller, Weeks, and Johnson Rental Index for April 2025 clearly shows that living in some U.S. cities comes with a high price tag for renters. In 11 major metros, a yearly income of over $100,000 is often needed just to afford rent comfortably.

For renters in these areas, this means careful budgeting and exploring all housing options. For those watching the broader housing market, it highlights the ongoing challenges of affordability in key economic hubs across the nation.

Related: Best U.S. Real Estate Markets for First Time Investors

Frequently Asked Questions (FAQs) on High-Cost U.S. Rental Cities

Here are common questions about renting in expensive U.S. cities.

Q: What does it mean to “need to earn more than $100,000” for rent?

A: It means that if you make less than $100,000 per year in these cities, you might spend more than 30% of your income on rent. This is the common rule for being “rent-burdened,” meaning housing costs make it hard to afford other necessities.

Q: Which report is this data from?

A: The data comes from the Waller, Weeks, and Johnson Rental Index, which tracks rent trends in major U.S. cities monthly.

Q: Why are rents so high in these 11 cities?

A: Rents are high due to strong job markets, a lot of people wanting to live there (high demand), and often not enough new homes being built (limited supply). These factors push up prices significantly.

Q: Are these cities mostly on the coasts?

A: Yes, most of the cities on this list are major metropolitan areas located on the East Coast (like New York, Boston, Miami, Bridgeport) and the West Coast (like San Jose, San Francisco, San Diego, Oxnard, Los Angeles, Riverside), along with Urban Honolulu.

Q: Does this mean it’s impossible to live in these cities if you earn less than $100,000?

A: No, it’s not impossible, but it means you might spend a larger part of your income on rent. People often cope by having roommates, finding smaller places, or commuting from more affordable areas outside the main city.

Q: What can renters do in high-cost cities?

A: Renters can look for roommates, explore different neighborhoods or nearby towns, consider smaller apartments, and budget carefully. Some might also look for housing assistance programs if available.

Q: Will rents in these cities ever go down?

A: Rent prices can fluctuate. Factors like new construction, changes in job growth, or people moving away could potentially lead to rents stabilizing or even decreasing. However, due to strong long-term demand and limited supply, significant drops are less common in these very high-cost areas.