Mortgage rates have steadily increased since the historic lows seen during the pandemic in 2020 and 2021. At the beginning of 2026, the national mortgage rate sat at 6.16 percent. Now, in the third quarter of the year, that rate has risen to 6.55 percent. Despite higher mortgage rates, national average rents have stayed steady, rising 0.8 percent over the last year.
If you’re looking for a more affordable alternative to homeownership, these seven cities offer renters lower monthly housing costs and less financial stress. These are seven U.S. cities where renting is more affordable than buying in 2026:
- Austin, Texas
- Sacramento, California
- Denver, Colorado
- Portland, Oregon
- Baltimore, Maryland
- Salt Lake City, Utah
- Orlando, Florida
Austin, Texas
- Median monthly mortgage payment in Austin: $2,475/month
- Average monthly rent in Austin: $1,421/month
Texas is one of the states most affected by rising housing costs driven by higher property taxes, insurance costs, and elevated mortgage rates. The average home price in Texas is between $303,000 and $340,000, making it one of the more affordable housing markets in the country. Even so, higher borrowing costs have made homeownership less attainable for people living in Texas. For those weighing their housing options, renting can offer greater affordability.
Local Rental Market and Lifestyle in Austin
Austin, the state capital, has one of the most diverse rental markets in the country. Known as “Silicon Hills,” the city has attracted major technology employers, creating new job opportunities. The expansion of the tech sector has helped support Austin’s growing workforce and rental demand. Combined with a large inventory of available apartments, renters have a variety of housing options to choose from.
Because Austin experienced a surge in new apartment construction, there are vacant units waiting to be filled, while rents have adjusted to match renter demand. The average monthly rent in Austin is $1,421 per month, creating a $1,054 difference between Austin’s median monthly mortgage payments and monthly rent prices. With more available apartments, competitive rental prices, and strong employment opportunities, Austin is a prime location for renters searching for housing affordability.
Sacramento, California
- Median monthly mortgage payment in Sacramento: $2,621/month
- Average monthly rent in Sacramento: $1,579/month
California is one of the most expensive states for both renters and homebuyers, but renters can still find affordable housing in Sacramento. Sacramento has one of the lowest average rents in California, at $1,579 per month. While the capital city has long been known for its historic roots, the modern tech sector continues to spur growth in the city.
Local Rental Market and Lifestyle in Sacramento
Sacramento is home to large tech companies such as Apple, Intel, and PricewaterhouseCoopers (PwC). As employment opportunities have expanded, the local housing market has become increasingly competitive, contributing to higher home prices and monthly mortgage payments. While mortgage rates continue to rise, the average rent in Sacramento has decreased by 0.5 percent in the last year. For renters, that means lower monthly housing costs and additional flexibility compared to buying.
Sacramento currently has a 51 percent renter mix, meaning renting is already the slightly more popular housing option. The difference between the average monthly mortgage payment and the average monthly rent in Sacramento is $1,042. Renters can put those savings into a savings account, toward debt repayment, or other monthly expenses. While finding an affordable place to rent in California can be challenging, Sacramento gives renters the opportunity to rent in the Golden State without the state’s high housing costs.
Denver, Colorado
- Median monthly mortgage payment in Denver: $2,518/month
- Average monthly rent in Denver: $1,633/month
Colorado experienced one of the largest oversupply waves in the past several years, resulting in a larger supply of housing. Despite new construction beginning to slow, Colorado's housing market is seeing fewer homes for sale and fewer buyers in the market. With the construction boom leaving many units vacant, renters can enjoy lower rents and more availability, making the apartment search easier.
Local Rental Market and Lifestyle in Denver
Rents throughout Colorado remain low, but renters seeking city living at an affordable price can find it in Denver. The gap between the monthly mortgage payment and the average rent in Colorado is $885. Following the increase in apartment supply, renting has become the preferred housing option, with 55 percent of Denver households renting. The average monthly rent has decreased 0.2 percent over the past year and may remain relatively stable as the market continues to balance.
Another factor contributing to Denver’s rental affordability is the Expanding Housing Affordability policy passed in 2022. This policy requires residential developments to reserve 8 to 15 percent of homes as affordable housing. Some developers in Denver accelerated projects before the policy took effect, increasing the supply of available apartments. If you’re looking for lower monthly housing costs or more apartment options, Denver is a strong option.
Portland, Oregon
- Median monthly mortgage payment in Portland: $2,404/month
- Average monthly rent in Portland: $1,551/month
A large reason that Oregon’s mortgage rates continue to increase is the state’s ongoing housing shortage. While demand for homes remains high, available inventory has not kept pace, ultimately increasing costs and pricing buyers out of the market. The U.S. Census Bureau reported that Oregon’s population increased between 2024 and 2025, explaining why housing demand and supply are at odds. While the housing market in Oregon remains competitive, renters benefit from an accessible rental market across the state.
Local Rental Market and Lifestyle in Portland
Although rents in Oregon have increased over the last year, they remain lower than Portland’s median monthly mortgage payment. In Portland, renters save approximately $853 per month compared to buying a home, based on average rent and mortgage payment data. With homeownership out of reach for many residents, renting has emerged as a popular housing choice. Today, 52 percent of people living in Portland rent their home rather than own, reflecting the city’s strong rental market.
Portland offers outdoor recreation and cultural amenities the Pacific Northwest is known for without the typical high housing costs. Renters enjoy easy access to Forest Park, Washington Park, and the Columbia River Gorge, all within driving distance of Downtown Portland. Whether you’re looking for an apartment close to nature or a neighborhood with easy access to parks, restaurants, and local attractions, Portland offers a variety of rental options.
Baltimore, Maryland
- Median monthly mortgage payment in Baltimore: $2,254/month
- Average monthly rent in Baltimore: $1,527/month
The Maryland housing market experienced the Sun Belt oversupply wave, where new construction was largely concentrated in one area of the nation, while others experienced increased prices and competition. That surge in supply is slowing and local markets are finding their footing, but for many people living in Maryland, rates are still too high to consider buying a home. Renting in Baltimore offers an affordable alternative.
Local Rental Market and Lifestyle in Baltimore
Baltimore is only a 30-minute train ride from Washington D.C., making the city an attractive option for commuters seeking lower housing costs outside the Washington metro area. The gap between mortgage payments and the average monthly rent in Baltimore is $727, allowing renters to take home more each paycheck. Although average rents have increased by 2.2 percent in the past year, the local rental market is becoming more balanced as new housing supply and renter demand continue to stabilize.
Situated along the Patapsco River, Baltimore offers waterfront neighborhoods, parks, museums, and convenient access to the greater D.C. metro area. With housing costs 13.1 percent below the national average, renters can enjoy easy access to an active area of the country at lower monthly prices.
Salt Lake City, Utah
- Median monthly mortgage payment in Salt Lake City: $2,106/month
- Average monthly rent in Salt Lake City: $1,428/month
Utah reported some of the lowest home prices throughout the early 2000s, but today, homebuyers face a much more competitive housing market. The housing shortage has impacted Utah’s real estate market significantly. In fact, Utah is projected to be 153,000 homes short of meeting housing demand by 2030. While the homebuying market faces inventory challenges, the rental market in Utah offers more flexibility for many residents.
Local Rental Market and Lifestyle in Salt Lake City
With rents decreasing by two percent over the last year, Salt Lake City is one of the more active and affordable rental markets in the American West. With average rents at $1,428 per month and a 59 percent renter mix, it’s clear that renting is already a popular housing choice. The gap between the median monthly mortgage payment and the average monthly rent in Salt Lake City is $678, allowing renters to reduce their monthly housing costs while avoiding the challenges of buying in a supply-constrained market.
Nicknamed “The Crossroads of the West,” Salt Lake City offers attractions and opportunity alike. Thanks to its location, renters in Salt Lake City can experience some of the best outdoor recreation in the country. Mountaintops, deserts, national parks, and lakes span the state, making hiking, biking, or fishing easily accessible.
Orlando, Florida
- Median monthly mortgage payment in Orlando: $1,967/month
- Average monthly rent in Orlando: $1,590/month
Florida’s median home sales price reached a record high of $432,000 in June 2026. Property taxes and homeowners insurance costs are also among the highest in the country, making the total cost of homeownership higher than buyers initially expect. In addition to being one of the most popular travel destinations, Florida continues to attract new residents and retirees, contributing to strong demand for housing across the state.
Local Rental Market and Lifestyle in Orlando
Orlando, home to Universal Studios and Walt Disney World, offers renters an opportunity to enjoy Central Florida while keeping housing costs low. Rents in Orlando average $1,590 per month, helping renters save $377 per month compared to the median monthly mortgage payment. Orlando has experienced an increase in apartment supply in recent years, helping create a more balanced rental market.
The renter mix in Orlando sits at 63 percent, suggesting that people already living in Orlando prefer this housing option. Renting in Orlando not only gives you access to popular theme parks, but also keeps you close to the University of Central Florida, the Orlando International Airport, Camping World Stadium, and Kia Center. Whether you’re looking for waterfront views or want to be close to your favorite sports team, Orlando offers a variety of rental options.
Find an Affordable Place to Rent on Apartments.com
Whether you’re looking for an affordable place to live in Sacramento or a new apartment in a tight rental market like Portland, Apartments.com makes it easy to find your next home. You can search for apartments within your budget by entering the minimum and maximum monthly rent in the “All Filters” section of the search results page.
Apartments.com has thousands of available listings to browse, ranging in price. Let us help you find the perfect home. Start your search today!
Methodology
This ranking compares the average monthly rent in each city with the median monthly mortgage payment in each city using 2026 Apartments.com rent data and mortgage payment estimates from the Federal Housing Finance Agency (FHFA). Cities were ranked by the difference between each city’s median monthly mortgage payment and its average monthly rent.
FAQs
Where is renting cheaper than buying in 2026?
Based on the city's median monthly mortgage costs and average monthly rent, renting may offer lower monthly costs in Sacramento, Baltimore, Denver, Salt Lake City, Austin, Orlando, and Portland. The estimated monthly differences range from about $377 in Orlando to $1,054 in Austin.
Is renting always more affordable than buying?
No. Renting may have a lower immediate monthly cost, but affordability depends on more than rent and mortgage payments. Buyers should also consider their down payment, property taxes, homeowners insurance, maintenance, closing costs, expected length of stay, and potential home equity.
Why are rents falling in some U.S. cities?
In cities such as Austin and Denver, increased apartment construction has expanded rental inventory. When available supply grows faster than renter demand, property managers may lower rents or offer concessions to fill vacant units.
