The Most Expensive Places to Live in the U.S.

May 18, 2022

In this three-part blog post, we look at affordability in the U.S. by analyzing the 40th percentile fair market rent (FMR) for a 1-bedroom unit across the nation. This measure was chosen because it signifies what type of housing is available for the lower-income household.

In a surprising analysis, some unexpected states have higher rents than those we typically expect. This is because we associated high-cost metros with their states, and assume that a particular state is generally less affordable. This indicates that fluctuations in rent are highly influenced by narrower geography.

40th Percentile FMR for a 1-Bedroom in the U.S.

Based on HUD’s data for the 40th Percentile FMR for a 1BR, California and Massachusetts dominate the top ten counties with the highest rent in 2019.

Counties with the highest average 40th Percentile FMR for a 1BR in 2019

However, when we look at the states with the highest average 40th Percentile FMR, we get a more diverse outcome. DC, Hawaii, and New Jersey make it to the top five. Surprisingly, Alaska makes it among the top ten most expensive states to rent from.

States with the highest average 40th Percentile FMR for a 1BR in 2019

But what can we get from this? Read the next blog post to find out more.

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