6 Cities Where Monthly Housing and Transportation Costs Are $2,000 or Less

The American cities of the Sunbelt and Southeast, often touted as “affordable,” come with a hidden cost: transportation. For example, while the median rent of a one-bedroom unit in the fast-growing city of Phoenix, AZ may only be $1,300, its monthly driving costs are $1,182 — totaling monthly housing and transportation costs at nearly 40% of the nationwide median household income ($74,580) and 41% of Phoenix’s median household income before tax ($72,092). When looking at post-tax income, this figure would be closer to 50%.

A general personal finance rule of thumb is that as a household you should be spending no more than 15% of your monthly income on driving costs and no more than 30% of your gross income on housing.

With this in mind, we looked for US cities with combined housing and transit costs of around $2,000 or less. Many of these cities share a few things in common: great access to nature or water features (three of them are on one of the Great Lakes!), historic downtowns and neighborhoods of years past that lead to walkable communities today, as well as an overall low cost of living.

Monthly Housing and Transportation Costs: $2,034

First on this list is Indianapolis, where monthly transportation and housing costs at just over $2,000, at $2,034 a month. Indianapolis has a notably low median rent: A one-bedroom apartment is just $902 a month. However, its transportation costs aren’t quite as cheap: The Center for Neighborhood Technology puts Indianapolis’s monthly driving costs at $1,132, with the typical household owning 1.72 cars. 

While it’s known for racing, the Midwest city has much more to offer. Indianapolis boasts a popular brewing scene, the world’s largest children’s museum, and numerous parks and water features. In 2023, we found that it was also one of the easiest places in the U.S. to rent an apartment due to its relatively noncompetitive housing market.

Monthly Housing and Transportation Costs: $1,885

A few hundred miles northwest of Indy sits Milwaukee, another low-cost city. The median rent for a one-bedroom in Milwaukee is $925, and its transportation costs come in at $960, with the average household owning 1.52 cars. Milwaukee’s Walk Score, while not as high as other picks on this list, is nothing to laugh at. Overall, it’s scored at 62, but the city is even more walkable in neighborhoods along Lake Michigan — which earned it the No. 6 spot on our Cheapest Walkable Cities list.

One benefit of Milwaukee is that it’s a short train ride away from Chicago, but it's still a great city in its own right, too. Its German immigrant heritage means it has a top-notch cured meats and beer scene, and the city has stunning views of Lake Michigan (and plenty of beaches too). It’s also known for its temperate summer weather and busy festival scene. 

Monthly Housing and Transportation Costs: $1,884

Prefer to stay east of the Mississippi? Try Rochester. While it has a lower-than-average household median income ($44,156), this upstate New York city provides a great value for renters, with a median one-bedroom rent of $936 and monthly driving costs of $948 (though the city also ranks as one of our top 10 Cheapest Walkable Cities for its Walk score of 61). Rochester is nestled alongside Lake Ontario, about 300 miles northwest of the New York City metro area.

While Rochester isn’t as well-known as NYC, it’s also far less expensive. Rochester is known for a cultural scene that punches well above its weight. It’s the home of the prestigious Eastman School of Music and multiple fine art museums, and it’s got a lush urban forestry and parks system. It’s also the birthplace of the grocery monolith Wegmans. 

Monthly Housing and Transportation Costs: $1,897

Another Great Lakes city with great value is Cleveland, one of the largest cities on our list. The city on the shores of Lake Erie has a median one-bedroom rent price of just $967 a month. And at $930, Cleveland’s monthly transportation costs are relatively affordable too, especially when compared to other car-centric cities nearby like Toledo or Columbus (where monthly transportation costs are $1,063 and $1,057, respectively).

While Cleveland’s rougher Rust Belt past may give it a not-so-great reputation today, it’s increasingly undeserved. In recent years, the Ohio city has begun to flourish with the revitalization of its downtown and Flats neighborhoods. The city has also turned its focus on better developing and activating its waterfront spaces. As far as entertainment is concerned, Cleveland is also the home of the Cleveland Orchestra, one of the top orchestras in the world, along with multiple professional sports teams. 

Monthly Housing and Transportation Costs: $1,468

If you want to be a bit closer to all the hustle and bustle of the Northeast Corridor and you’d rather not own a car (or pay upwards of $4,000 for rent alone in a pricey big city like New York or Boston), try Philadelphia. Monthly housing and transit costs are just $1,468, as its high Walk, Bike, and Transit Scores make it relatively painless to live car-free. The median rent for a one-bedroom unit is $1,324, while the cost of a transit pass that allows unlimited usage within Philadelphia city limits (and further out on weekends) is only $144 a month.

Philadelphia is about 90 minutes away from both Washington, DC and New York City by train, allowing for easy day trips for work or travel — but it also offers its residents plenty of entertainment and employment opportunities as well. For example, the city has a large healthcare sector, providing employment to one in five workers in Philly. Not to mention, Philadelphia is a city steeped in history. Its colonial past leaves behind quaint architecture, narrow streets, and plenty of historical sites. And with a Walk Score of 75, it’s no surprise it’s our No. 3 Cheapest Walkable City.

Monthly Housing and Transportation Costs: $1,150

Minneapolis is the cheapest place to live and get around on this list, thanks to its low rent, decent walkability and transit, and high Bike Score of 83 (It’s currently Walk Score’s top city for biking!). It’s also the only city on this list with a median household income ($76,332) that’s higher than the national figure. The median cost of a one-bedroom unit is only $1,030, and it’s got an average Walk-Bike-Transit Score of 70, making it possible to live here without a car. This means that Minneapolis’s transportation costs are low—only $120 for an unlimited monthly transit pass.

Minneapolis has a lot going for it besides affordability. In the last year, we’ve ranked it as the No. 2 Cheapest Walkable City, No. 2 Best City for College Grads of 2023, and No. 10 Best Summer City of 2023. While Minneapolis may be known for its chilly winters, it’s gifted with beautiful as well as a breadth of parks and lakes within its city limits, along with a bustling downtown and streetcar suburbs. Minneapolis is also the home of the Mall of America, along with being the birthplace of Target.

To find the monthly housing and transportation costs for each city, we combined the median monthly rent price for a one-bedroom apartment with the total driving or transit costs.

Transportation costs were determined based upon a few factors. If a city’s average Walk, Transit, and Bike score was at or over 70, the city was assumed to be livable without a car and transportation costs were calculated using the monthly cost of a city’s transit pass. If a city’s scores were lower than 70, monthly transportation costs were based on the cost of owning, using, and maintaining a car for that area (or cars, depending on how many cars the average local household owns).

Rent data came from ApartmentAdvisor. Walk, Transit, and Bike scores came from WalkScore. Driving data came from the Center for Neighborhood Technology. Income data came from the U.S. Census.

To learn more about rent data trends in major US cities, refer to our Market Reports. For a monthly breakdown of national average rent prices across the country, check out our National Rent Report.

Press contact: Amy Mueller (amy.mueller@apartmentadvisor.com)