2026 data · both sides sourced · the gap, ranked
Rent vs. buy: the salary you need for each, in every state
Every rent-vs-buy argument eventually hits the same wall: the two sides quote numbers from different planets. This table puts them on one line per state — the salary it takes to rent a two-bedroom (HUD's 2026 Fair Market Rents at the 30%-of-income standard) beside the salary it takes to buy the typical home (the lender 28/36 rule on June 2026 Zillow values with each state's real property-tax rate) — and ranks the gap between them.
The headline: buying demands a higher salary than renting in every single state — there is no jurisdiction where the two-bedroom rental requires more income than the typical home. But the premium varies enormously: from about $11,556 of extra salary in West Virginia to $97,399 in Hawaii — a spread of 8.4×, with a median of $39,454.
The sharpest cut: in 5 states — Wyoming, Idaho, Utah, South Dakota, and Rhode Island — buying takes more than double the salary renting does. And in 4 states, even renting now takes six figures, with California demanding the nation's highest rental salary at $109,812 even though Hawaii tops the buy side.
All 50 states + DC, ranked by the buy premium
"Salary to rent" = a 2-bedroom at HUD Fair Market Rent, 30% of income. "Salary to buy" = the typical home under the 28/36 rule, 20% down at 6.6%. Full methodology below the table.
| Rank | State | Buy premium | Salary to rent | Salary to buy |
|---|---|---|---|---|
| 1 | Hawaii | +$97,399 | $102,702 | $200,101 |
| 2 | California | +$87,612 | $109,812 | $197,424 |
| 3 | New Jersey | +$84,209 | $91,289 | $175,498 |
| 4 | Massachusetts | +$78,510 | $101,072 | $179,582 |
| 5 | Washington | +$73,614 | $82,865 | $156,479 |
| 6 | Utah | +$72,831 | $63,283 | $136,114 |
| 7 | Rhode Island | +$71,504 | $70,617 | $142,121 |
| 8 | New Hampshire | +$69,124 | $81,614 | $150,738 |
| 9 | Idaho | +$65,912 | $56,413 | $122,325 |
| 10 | Oregon | +$63,728 | $69,534 | $133,262 |
| 11 | Colorado | +$61,117 | $75,797 | $136,914 |
| 12 | Montana | +$60,507 | $62,334 | $122,841 |
| 13 | District of Columbia | +$57,644 | $89,840 | $147,484 |
| 14 | Wyoming | +$53,664 | $43,173 | $96,837 |
| 15 | Connecticut | +$51,911 | $81,075 | $132,986 |
| 16 | Vermont | +$50,573 | $67,351 | $117,924 |
| 17 | Maine | +$48,700 | $67,224 | $115,924 |
| 18 | Wisconsin | +$47,800 | $51,499 | $99,299 |
| 19 | South Dakota | +$47,391 | $43,753 | $91,144 |
| 20 | New York | +$46,995 | $100,804 | $147,799 |
| 21 | Alaska | +$45,765 | $63,632 | $109,397 |
| 22 | Nevada | +$45,034 | $69,329 | $114,363 |
| 23 | Virginia | +$42,448 | $69,413 | $111,861 |
| 24 | Maryland | +$39,823 | $78,214 | $118,037 |
| 25 | Arizona | +$39,681 | $68,366 | $108,047 |
| 26 | Delaware | +$39,454 | $66,981 | $106,435 |
| 27 | Minnesota | +$38,948 | $60,159 | $99,107 |
| 28 | North Dakota | +$38,619 | $43,520 | $82,139 |
| 29 | Nebraska | +$37,132 | $48,001 | $85,133 |
| 30 | North Carolina | +$34,397 | $56,385 | $90,782 |
| 31 | Tennessee | +$34,167 | $54,519 | $88,686 |
| 32 | New Mexico | +$33,469 | $52,302 | $85,771 |
| 33 | Illinois | +$30,569 | $63,156 | $93,725 |
| 34 | Missouri | +$30,161 | $46,157 | $76,318 |
| 35 | Kansas | +$29,349 | $45,144 | $74,493 |
| 36 | Georgia | +$29,049 | $62,060 | $91,109 |
| 37 | Iowa | +$28,016 | $44,485 | $72,501 |
| 38 | Texas | +$27,447 | $62,265 | $89,712 |
| 39 | South Carolina | +$27,291 | $54,069 | $81,360 |
| 40 | Ohio | +$25,964 | $49,537 | $75,501 |
| 41 | Pennsylvania | +$25,797 | $60,050 | $85,847 |
| 42 | Michigan | +$25,707 | $53,097 | $78,804 |
| 43 | Florida | +$22,641 | $78,905 | $101,546 |
| 44 | Indiana | +$22,578 | $50,183 | $72,761 |
| 45 | Kentucky | +$20,959 | $45,013 | $65,972 |
| 46 | Alabama | +$20,806 | $43,484 | $64,290 |
| 47 | Arkansas | +$19,550 | $43,307 | $62,857 |
| 48 | Oklahoma | +$18,493 | $45,445 | $63,938 |
| 49 | Louisiana | +$14,712 | $45,512 | $60,224 |
| 50 | Mississippi | +$14,151 | $41,623 | $55,774 |
| 51 | West Virginia | +$11,556 | $39,993 | $51,549 |
Rent side: National Low Income Housing Coalition, Out of Reach 2026 (HUD FY2026 Fair Market Rents; income needed at the 30%-of-income affordability standard) (nlihc.org/oor ↗). Buy side: our salary-needed-by-state table (Zillow Home Value Index (ZHVI), typical home value (35th-65th percentile, smoothed, seasonally adjusted), state level, June 2026 — Zillow Research public data; Tax Foundation, Property Taxes by State and County (2026 publication; 2024 Census ACS data) — median property taxes paid as a share of owner-occupied home value).
Download the data (CSV) — free to reuse with attribution (CC BY 4.0). Suggested citation: "FIManager analysis of NLIHC Out of Reach 2026 and Zillow ZHVI, fimanager.app/rent-vs-buy-salary-by-state."
Your state's premium isn't your premium
Your debts, your down payment, and your county's taxes set the real number. Run the same lender math on your own situation — free, no signup, nothing leaves your browser.
See what you can afford →Methodology — two models, stated honestly
What each column measures, why the comparison is imperfect, and which way each imperfection leans.
The two models
NLIHC's 30% rent standard beside our 28/36 buy table — test-enforced.
The two models
NLIHC's 30% rent standard beside our 28/36 buy table — test-enforced.
Salary to rent uses the National Low Income Housing Coalition's long-standing standard: housing is affordable at 30% of gross income, so the required salary is HUD's two-bedroom Fair Market Rent × 12 ÷ 0.30. Our tests recompute every state's figure from its FMR.
Salary to buy is exactly our salary-needed-by-state table: the 28/36 lender rule on June 2026 Zillow typical home values, each state's real effective property-tax rate, 20% down at 6.6%, ~$2,300/yr insurance. Our test suite asserts this page's buy column matches that table exactly, state by state — the two pages cannot disagree.
Why the comparison is imperfect — and which way it leans
Five honest caveats: what a 40th-percentile rental vs. a mid-tier home really compares.
Why the comparison is imperfect — and which way it leans
Five honest caveats: what a 40th-percentile rental vs. a mid-tier home really compares.
- Different quality points. FMR is roughly a 40th-percentile rental; ZHVI is the mid-tier home. A like-for-like mid-tier rental would cost more — so the true premium for equivalent housing is smaller than shown.
- Different affordability caps. The rent standard allows 30% of income for housing; the lender buy rule caps it at 28%. The stricter buy cap inflates the buy salary, so this mismatch widens every premium shown here. Using 30% on both sides would shrink each state's gap — Hawaii's by $13,340 — though the premium would stay positive in all 51 jurisdictions (West Virginia would still be +$8,119).
- Equity vs. none. Part of the buyer's payment becomes ownership; none of the renter's does. The premium isn't pure cost — some of it is forced saving.
- Upfront costs excluded. The buy side assumes the 20% down payment already exists; saving it is its own multi-year problem the table doesn't price.
- Ownership costs beyond the payment. FMR is gross rent — utilities included — while the buy payment covers only mortgage, property tax, and insurance: no utilities, maintenance, or HOA. Price those in and the real premium is larger than shown.
FAQ
- Why does buying require more income than renting in every state?
- Partly because the comparison is honest about what each number is: the rent side prices a modest two-bedroom (HUD's Fair Market Rent sits near the 40th percentile of local rents), while the buy side prices the typical mid-market home with its full payment. At 2026 prices and rates, ownership simply costs more per month — and the premium buys something renting doesn't: equity. The gap is the price of that trade.
- Does this mean renting is throwing money away?
- No. Renting buys flexibility, zero maintenance risk, and — per this table — a materially lower income requirement, which can free real money for investing. Buying converts part of the higher payment into equity, but adds transaction costs, maintenance, and concentration risk. Which side wins depends on how long you stay and what the freed-up cash would earn — a personal calculation, not a slogan.
- How are the two salary numbers computed?
- The rent salary is NLIHC's standard: the gross income at which HUD's 2-bedroom Fair Market Rent equals 30% of income. The buy salary is our published state table — the 28/36 rule on June 2026 Zillow values with each state's real property-tax rate. Our test suite recomputes every rent figure from its FMR and asserts the buy column matches that table exactly.
- What salary do I need for my situation?
- Statewide tables can't see your debts, down payment, or county. Run the same lender math on your actual numbers with the free calculator — no signup, and your numbers never leave your browser.
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