Overextended Renters
Are current renters financially overextending themselves to make monthly housing payments?
Overextended renters is a measure of the percentage of renters spending more than 30% of their income on housing costs, including rent and utilities. It indicates how affordable—or unaffordable—it is to rent in a city, and how much financial pressure renters face month to month.
When this rate is high, it may point to a mismatch between wages and housing costs, a shortage of affordable units, or rising demand in competitive markets. Renters who are overextended may have to cut back on food, healthcare, or transportation to make rent, leaving little room for emergencies or long-term planning. Cities can address this through rent assistance programs, affordable housing development, and policies that stabilize rental markets.
When the rate is low, it suggests renters can afford their homes without sacrificing basic needs. It reflects a healthier rental market and a city where residents have greater economic stability and room to plan for their futures.
Primary Indicator
Percentage of renters paying more than 30% of their income on housing
Data were obtained from the American Community Survey Table B25106. To compute this metric, we aggregated the number of renter-occupied units where 30% or more of the household income goes toward housing costs for each income bracket and divided it by the total number of renter-occupied housing units using the following formula: (B25106_028E+B25106_032E+B25106_036E+B25106_040E+B25106_044E)/B25106_024E
Additional Indicators
Percentage of renters paying more than 30% of their income on housing by age of the householder
Data were obtained from the American Community Survey Table B25072. To compute this metric, we aggregated the number of units paying 30% or more of their household income in gross rent and divided that by the total renter-occupied housing units for each age cohort (ages 15 to 24, 25 to 34, 35 to 64, and 65 and over) using the following formulas:
- 15 to 24 years: (B25072_006E+B25093_007E)/B25072_002E*100
- 25 to 34 years: (B25072_013E+B25093_014E)/B25072_009E*100
- 35 to 64 years: (B25072_020E+B25093_021E)/B25072_016E*100
- 65 years and over: (B25072_027E+B25093_028E)/B25072_023E*100
Percentage of renters by the percentage of their income spent on rent
Data were obtained from the American Community Survey Table B25070. To compute this metric, we obtained the total renters by the percentage of their household income spent on gross rent and divided it by the total renter-occupied housing units using the following formulas for each range of gross rent as a percentage of household income:
- Less than 10% of income on gross rent: B25070_002E/B25070_001E
- 10.0-14.9% of income on gross rent: B25070_003E/B25070_001E
- 15.0-19.9% of income on gross rent: B25070_004E/B25070_001E
- 20.0-24.9% of income on gross rent: B25070_005E/B25070_001E
- 25.0-29.9% of income on gross rent: B25070_006E/B25070_001E
- 30.0-34.9% of income on gross rent: B25070_007E/B25070_001E
- 35.0-39.9% of income on gross rent: B25070_008E/B25070_001E
- 40.0-49.9% of income on gross rent: B25070_009E/B25070_001E
- 50.0% or more of income on gross rent: B25070_010E/B25070_001E
- Not computed: B25070_011E/B25070_001E
Percentage of renters paying more than 30% of their income on housing by income range of the householder
Data were obtained from the American Community Survey Table B25106. To compute this metric, we divided the number of renter-occupied units where 30% or more of the household income goes toward housing costs for each income bracket by the total number of renter-occupied housing units in that income bracket using the following formula by household income bracket:
- Household income less than $20,000 = B25106_028E/B25106_025E
- Household income of
20,000 -34,999 = B25106_032E/B25106_029E - Household income of
35,000 -49,999 = B25106_036E/B25106_033E - Household income of
50,000 -74,999 = B25106_040E/B25106_037E - Household income of $75,000 or more = B25106_044E/B25106_041E