Spending 30% of income on rent is the new normal in many US metros by Moody's

According to a recent report by Moody’s, 2022 marked the first time in nearly 25 years of recordkeeping that the average American household needed to spend more than 30% of their income on rent. This threshold is considered to be the point at which rent becomes financially burdensome. The increase in household rent burdens can be attributed to rising mortgage rates, which have made it more difficult for households to afford buying a home, leading to increased demand for rental properties.

However, there has been some relief for renters recently, as the multifamily market has experienced a seasonal slowdown.

Moody’s interactive offers readers the opportunity to explore select US markets and see where their family could comfortably live below the 30% rent-burden threshold based on their adjusted household income.