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18 Amazing Midwest Cities With Affordable Housing

May 18, 2022

4 min Read

Written by Jordan Rosenfeld

Edited by Gary Dudak

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In a housing market as hot as the current one, finding a good, affordable location may be growing harder and harder. For people who are less attached to where they live, and more interested in choosing a place where they can rent at an affordable price, the Midwest is shaping up to be an excellent location.

Of 18 Midwestern cities with affordable housing, Indiana topped the list with four cities, while Iowa, Ohio, Michigan, and North Dakota followed suit with two cities each.

To determine these amazingly affordable cities, GOBankingRates drew on data from the Bureau of Labor Statistics (BLS), ApartmentList and AreaVibes to narrow down Midwestern cities where the average rent for a one-bedroom apartment was no more than 30% of average monthly income. We also looked for cities where the cost of living index was no more than 10% higher than the national average, and which had good livability scores.

Here are the top 18 most affordable Midwestern cities.

18. Madison, Wisconsin

Average monthly state income: $4,196
Average rent for a 1 bedroom: $1,233
Population: 254,977
Cost of living index: 99.5
Livability index: 74

17. Ann Arbor, Michigan

Average monthly state income: $4,616
Average rent for a 1 bedroom: $1,213
Population: 120,735
Cost of living index: 99.3
Livability index: 83

16. St. Cloud, Minnesota

Average monthly state income: $4,996
Average rent for a 1 bedroom: $780
Population: 68,001
Cost of living index: 95.4
Livability index: 66

15. Grand Rapids, Michigan

Average monthly state income: $4,616
Average rent for a 1 bedroom: $900
Population: 198,401
Cost of living index: 93.7
Livability index: 67

14. Bloomington, Indiana

Average monthly state income: $4,128
Average rent for a 1 bedroom: $969
Population: 84,116
Cost of living index: 92.4
Livability index: 66

13. Columbus, Ohio

Average monthly state income: $4,392
Average rent for a 1 bedroom: $996
Population: 878,553
Cost of living index: 93.9
Livability index: 73

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12. Indianapolis, Indiana

Average monthly state income: $4,128
Average rent for a 1 bedroom: $892
Population: 864,447
Cost of living index: 90.2
Livability index: 65

11. Sioux Falls, South Dakota

Average monthly state income: $3,860
Average rent for a 1 bedroom: $844
Population: 177,117
Cost of living index: 92.8
Livability index: 70

10. Rochester, Minnesota

Average monthly state income: $4,996
Average rent for a 1 bedroom: $949
Population: 115,557
Cost of living index: 97.3
Livability index: 84

9. Cincinnati, Ohio

Average monthly state income: $4,392
Average rent for a 1 bedroom: $797
Population: 301,394
Cost of living index: 92.4
Livability index: 68

8. Omaha, Nebraska

Average monthly state income: $4,068
Average rent for a 1 bedroom: $890
Population: 475,862
Cost of living index: 92.9
Livability index: 72

7. Lincoln, Nebraska

Average monthly state income: $4,068
Average rent for a 1 bedroom: $828
Population: 283,839
Cost of living index: 94.7
Livability index: 78

6. Des Moines, Iowa

Average monthly state income: $4,060
Average rent for a 1 bedroom: $763
Population: 215,636
Cost of living index: 91.7
Livability index: 75

5. Fargo, North Dakota

Average monthly state income: $4,304
Average rent for a 1 bedroom: $753
Population: 121,889
Cost of living index: 91.4
Livability index: 76

4. Davenport, Iowa

Average monthly state income: $4,060
Average rent for a 1 bedroom: $806
Population: 102,169
Cost of living index: 87.2
Livability index: 69

3. Grand Forks, North Dakota

Average monthly state income: $4,304
Average rent for a 1 bedroom: $672
Population: 56,500
Cost of living index: 90.7
Livability index: 74

2. Columbus, Indiana

Average monthly state income: $4,128
Average rent for a 1 bedroom: $943
Population: 48,150
Cost of living index: 89.1
Livability index: 78

1. Fort Wayne, Indiana

Average monthly state income: $4,128
Average rent for a 1 bedroom: $846
Population: 265,752
Cost of living index: 86.8
Livability index: 75

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Methodology: GoBankingRates first determined (1) average monthly wages in Q3 2021 for North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri, Wisconsin, Illinois, Indiana, Ohio and Michigan, sourced from the Bureau of Labor Statistics (BLS) County Employment and Wages news release. GOBankingRates then (2) found cities within the selected states where the average April 2022 rent for a one-bedroom apartment, sourced from ApartmentList, was no greater than 30% of state resident average monthly income (the housing budget guideline recommended by professionals); and (3) the corresponding populations for each city, sourced from the U.S. Census Bureau. Cities included in the ranking had (4) an overall cost of living index, sourced from AdvisorSmith, no greater than 10% higher than the national average; and (5) livability scores, sourced from Areavibes, above 65. All data was collected and is up to date as of May 9, 2022.