Here’s where retirees can—and can’t—afford to rent on retirement income

As rental prices increase across the U.S., many retirees on fixed incomes are struggling to afford housing.

While renting offers flexibility and fewer long-term commitments, rising costs are forcing seniors to reconsider where and how they live.

A FinanceBuzz analysis comparing rent prices with income for Americans 65 and older found that many retirees may need to downsize, relocate, or share housing to remain financially secure.

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Methodology:

According to FinanceBuzz, the analysis is based on 2024 data from the U.S. Census Bureau’s American Community Survey, the most recent available.

The research team examined two key metrics in each state: median income for Americans aged 65 and older and median gross rent. Monthly income was calculated by dividing annual income by 12, then compared with rent to determine the share of income retirees would spend on housing.

The study includes rent across all unit types, meaning costs may be higher than those for smaller units such as studios or one-bedroom apartments.

Dig deeper:

The median rent in the U.S. stands at $1,487, while Americans aged 65 and older have a median monthly income of $4,971—meaning nearly 29.9% of retiree income goes toward housing. Overall, about 49% of Americans are considered "cost-burdened," spending more than 30% of their income on rent.

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On average, rent exceeds that 30% affordability threshold in 11 states, with Florida (36.2%), California (35.2%), and Washington, D.C. (32.8%) ranking as the least affordable for retirees. In contrast, states such as Wyoming, South Dakota, and North Dakota are among the most affordable relative to income for older renters.

Why you should care:

Financial experts recommend spending no more than 30% of total income on housing. FinanceBuzz identified the states where average rent consumes the largest share of retirees’ incomes.

What you can do:

Here are a few tips to help you stay on top of your finances in retirement:

• Use senior-friendly bank accounts: Even with reduced income, your money can still grow. Look for low-fee or no-fee accounts designed for retirees to help protect your savings.
• Maximize rewards with credit cards: When used responsibly, credit cards can boost purchasing power and provide valuable perks like cash back or points.
• Start saving early—or continue if you can: The sooner you save, the more time your money has to grow through compounding, but even late contributions can help strengthen your finances.
• Stick to a budget: Tracking spending and using budgeting tools can help you manage expenses and stay financially stable in retirement.