In 2003, I was renting a studio apartment in Borough Park, Brooklyn. It was sizeable and cavernous in terms of living space, although the bathroom was too small. Anyway, I paid $725 monthly for it. That was a lot of money for me since I was making less than $30,000. When adjusted for inflation, $725 in 2003 is $1,013 in today’s money. These are helpful things to consider when you’re looking for cheap rent.
The local cost of living wasn’t too bad in my old neighborhood. Also, I had to get used to living with a whole new class and ethnicity of people.
At that time in 2003, the area of Borough Park I moved into was inhabited mainly by Orthodox Jews. My landlord was one as well.
I didn’t know how I would be received, being a black man. But it seems I had nothing to worry about. My landlord ran a local bakery, was well respected, and the neighbors were very friendly.
In fact, my landlord gifts me a fancy cake every New Year’s day as a token of goodwill.
There was an L — an elevated mass transit train platform nearby. The sounds of passing subway trains happened so often I barely noticed such them in time.
Even though the rent was reasonable, I could barely afford that place on my then salary.
I really miss that place.
Still, I should have found a cheaper place to rent.
There are lots of things you should consider when renting. The social makeup of the neighborhood, local work opportunities, and whether you will stay there long-term.
Before getting into where you can find apartments with cheap rent, like under $700, let’s discuss why most people rent instead of buying their own.
It’s not always by choice.
Cheap Rent: A Question of Need Over Want?
Yes, the longer you rent, the longer you’re just paying your landlord’s bills instead of saving money for your own financial future.
However, the dream of homeownership is out of reach for many reasons.
Most people rent because they have to, not necessarily because they want to. And yet, the longer one rents, the further the dream of homeownership disappears from reach.
The average salary is only about $47,000. Meanwhile, the cost of a new home in the United States is $363,000.
For added context, the median price of a new home in New York City is $403,000. That price corresponds to a $2,200 monthly mortgage payment.
And that $2,200 mortgage estimate does not include other costs of living expenses such as food, transportation, insurance, and so on.
Most Millennials can’t afford to buy homes because of crippling student loan debt and diminishing, well-paying job prospects.
Also, half of all Millennials use over 30 percent of their income to pay rent annually. For added context, 30 percent of $47,000 is $14,100.
About 65 percent of Americans own their own homes. However, these are mostly Baby Boomers and Generation X, or people generationally born between 1946 through 1980.
Meanwhile, over 22 percent of Millennials, or people aged between 22 and 37, are still living at home with their parents.
That is the highest number of young adults delaying personal life independence in over a century.
So, what does this all mean?
It means you really must make strategic, well-researched decisions about where you rent and how much you pay for rent.
You must endeavor to save more money than you spend so as to achieve long-term financial goals.
That takes sacrifice.
Sacrifice and Cheap Rent
What kind of sacrifice?
The average rent in the United States in 2018 was $1405. In the borough of Manhattan, it’s $4,100.
Although San Francisco alternately switches place with NYC for the honor of the nation’s highest rent prices, the average rental high was $3,560 in 2018.
In Boston, the average price of rent is $3,400 in 2018.
The point is that if you want to live in a large, metropolitan city, well, you’re going to pay a lot.
And, as we discussed before, the longer you end up paying rent, the longer you will end up paying to achieve the financial dreams of your landlord.
If you make an average salary yet want to live in Miami, New York City, San Francisco, or some
other large city, well, something has to give.
Even if you can make rent, you won’t be able to save money and you’ll constantly struggle with personal finances.
Working 2 or 3 jobs without a clear financial goal will just leave you burned out.
Where do you want to be a decade from now? What are your financial goals? Can you develop a realistic financial plan to achieve such?
Well, to achieve such a dream, you may have to spend a few years living in a city, or small town, that may not be #1 on your list of preferences.
Could you spend 5+ years living somewhere with cheap rent so you can save more money and potentially realize your long-term dreams?
This does not mean that you must move to a dangerous neighborhood or one where you feel like you won’t be socially accepted.
There are many cities in this country where the average rent is anywhere between $450 to $700.
Cities With Cheap Rent Between $450 and $700
These cities are not metropolitan cities. There may not have a jumping nightlife or social activities relative to a metropolitan city.
Such cities may be safe to live in, but they could be socially mundane when it comes to entertainment, remote, and non-exciting places to live.
That is a small sacrifice to pay if you have a realistic, long-term personal finance dream to own a house, start a family, launch a business, and so on.
It takes money to do such things. And it’s hard to save money if you’re spending 30 to 40 percent of your annual income on rent.
So, if you’re open-minded and in the market for such, here is a list of cities with cheap rents.
Vivian, Louisiana
You can find apartment rentals here for between $450 and $520 monthly.
Tennessee
You could get a 1-bedroom apartment here in Greenville for $500.
Here is a two-bedroom in Morristown for $500.
A 3-bedroom in Newport costs $725.
Kansas
Here is a 2-bedroom in Wichita for $550.
A 2-bedroom in Hutchinson for $425.
You can get a 1-bedroom at this Wichita apartment complex for anywhere between $420 to $450.
This Wichita apartment complex has rents ranging between $535 to $620.
Madison, Florida
Here is a 1-bedroom for $500.
Yerington, Nevada
This 1-bedroom will run you about $700.
Baldwyn, Mississippi
Rent here ranges between $650.
Make a Concise Plan
It’s easy for me to list various places with cheap rent for you to live in.
At the end of the day, you, and perhaps your family, have to live there.
What I hope you will do is follow this format. Consider where you want to live and do the necessary research according to your preferences.
Contemplate your potential willingness for short-term sacrifice.
Then think about your future plans and how you want to realistically achieve them.
You can do that or pay $1,500 to $3,500 monthly for rent and make it up as you go along, which too many people already do.
It’s up to you.
Read More
HERE ARE THE LIVING WAGES OF 10 BIG CITIES
A GUIDE FOR INVESTING IN RENTAL PROPERTIES
WHAT TO LOOK FOR IN A NEW HOME: THE 5 THINGS YOUR NEW HOUSE NEEDS
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.