When apartment hunting, there are several key things to keep in mind to get the best value. ACC experts offer some tips when you begin your search.
Written by: Job Hammond, Real Estate Associate Professors
What tips do you have for a person looking to get the best value in an apartment?
With a large number of American households renting, about 36% according to the Pew Research Center (2021), it pays to be prepared when you’re looking for an apartment. I always tell my students to treat their rental application like a job application. Landlords are looking for responsible tenants, and you can show you’re a good candidate by using credit wisely to build a high score, paying your bills on time, and getting letters of recommendation from past landlords.
Finding the right value extends beyond the application. It’s important to comparison shop and look at several properties to understand the market. Don’t just look at the newest, most updated apartments. A non-renovated unit in an older building might not have stainless steel appliances, but it could offer a lower rent, more space, or a better location. It’s also smart to think about what you actually need. If you don’t own a car, for instance, you could ask for a rent reduction in exchange for giving up a designated parking space. Negotiating on amenities you won’t use can be an effective way to lower your monthly costs. This preparation and flexibility can make a real difference in finding a place that fits your budget.
What are the most common mistakes that renters make when searching for a new apartment?
Renters can fall into a few common traps when they’re searching for a new place. The most common mistake made is spending too much on rent, which can put pressure on finances. Renters also often forget to budget for other costs. These can include renter’s insurance, maintenance, parking, and pet fees, all of which add to the monthly housing expense. Another major error is renting an apartment without ever seeing it in person; pictures can be deceiving. Finally, many renters don’t think about looking at single-family rentals. These homes can sometimes be found at a similar price point and offer a different living experience.
In evaluating the best and worst cities for renters, what are the top five indicators?
When I evaluate the best and worst cities for renters, I look at five main indicators. The rental absorption rate tells us how quickly available units are being leased. Next, I examine rent cost ratios to see how affordable the city is for the average person. The local employment market is another big factor, as it points to the availability of jobs. The overall inventory of rental units is also important, since more available units can create more competitive pricing. Lastly, I consider the city’s quality of life by looking at its amenities, like parks and public transit.
Are the fastest growing cities a good place for renters? Why?
Fast-growing cities can be a great choice for renters. Usually, this growth is tied to new jobs, which helps people find work and get on solid financial footing. Renters who do their research and prepare properly can set themselves up for future homeownership. By setting down roots in a growing city, you can grow with it and enjoy the new amenities and opportunities that come along.
How can local policymakers make housing more affordable for renters without upsetting homeowners?
Local policymakers have a tough job. They need to find ways to make housing more affordable for renters without upsetting homeowners. The debate over higher-density housing is always a challenge. Many people believe that more density brings more crime and lowers property values. However, the data shows that this isn’t the case; the impact is generally neutral.
Some cities try to solve this with policies like rent control, which looks like an easy win for tenants. But, these policies sometimes backfire. When landlords can’t set rent based on the market, they might stop putting money back into their properties. This means less spending on maintenance and important updates.
We also must think about who owns these rental properties. Most rentals don’t belong to big corporations. They’re owned by small investors, the “mom-and-pop” landlords. For these owners, just one rent-controlled apartment can be a huge part of their income. It’s clear that policy makers need to be careful. They should encourage a good supply of quality rental housing because that helps the whole community.Back to All Experts
Methodology
In order to determine the best local rental markets, WalletHub compared 182 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — across two key dimensions, “Rental Market & Affordability” and “Quality of Life.”
We evaluated those dimensions using 21 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for renters. Data for metrics marked with an asterisk (*) were available at the state level only.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.
Rental Market & Affordability – Total Points: 60
- Share of Renters: Full Weight (~3.24 Points)
Note: This metric specifically measures the share of renter occupied housing units among total occupied housing units. - Rental Vacancy Rate: Full Weight (~3.24 Points)
- Sublet Laws-Friendliness*: Full Weight (~3.24 Points)
- Average Home Square Footage: Half Weight (~1.62 Points)
- Share of Newer Homes: Full Weight (~3.24 Points)
Note: “Newer Homes” include housing units built between 2010 and 2023. - Rental Affordability: Triple Weight (~9.73 Points)
Note: This metric was calculated as follows: Median Gross Rent / Median Annual Household Income. - Share of Apartment Community Pillar Listings: Full Weight (~3.24 Points)
Note: A Community Pillar landlord has agreed to relax their standard tenant screening process in order to help applicants with potential rental barriers—such as low incomes, spotty credit scores, unemployment, or lack of housing references—be able to obtain housing. - Historical Rental-Price Changes: Triple Weight (~9.73 Points)
Note: This metric specifically measures the year-over-year change in rent prices (2025 vs. 2024 vs. 2023). - Share of Severely Cost-Burdened Renter Households: Full Weight (~3.24 Points)
Note: “Severely Cost-Burdened Renter Households,” as defined by the U.S. Department of Housing and Urban Development, refers to consumers who spend at least 50 percent of their income on housing. - Average Annual Renters-Insurance Premium*: Full Weight (~3.24 Points)
- Rent-to-Price Ratio: Full Weight (~3.24 Points)
- Cost of Living: Triple Weight (~9.73 Points)
- Security-Deposit Limit*: Full Weight (~3.24 Points)
Note: This metric measures the maximum security-deposit amount that landlords are allowed to charge in the state. A lower amount is ideal for renters.
Quality of Life – Total Points: 40
- City Satisfaction Index: Full Weight (~5.71 Points)
Note: This metric is based on Sharecare’s Well-Being “Community” Index Score, and refers to residents liking where they live, feeling safe and having pride in their community. - Job Market: Full Weight (~5.71 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking. - Driver-Friendliness: Half Weight (~2.86 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking. - Recreation-Friendliness: Full Weight (~5.71 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Recreation” ranking. - Weather: Half Weight (~2.86 Points)
Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking. - Quality of Public School System: Half Weight (~2.86 Points)
Note: This metric is based on GreatSchools.org’s ratings of U.S. public schools. - Safety: Double Weight (~11.43 Points)
Note: This metric measures the violent- and property-crime rates. - Presence of State Bedbug Laws*: Half Weight (~2.86 Points)
Note: This binary metric measures the presence or absence of bedbug laws in the state. Bedbug laws address bedbug infestations in rental properties.
Tags: ACC Experts, Apartment
Back to Top