If you’re looking for a cheap, desirable place to live, Kansas City is a good place to be in 2017.
Forbes ranked Kansas City as the third-best city for renters among a list of 46 cities. The 46 cities were chosen because they have the “most investor interest,” Forbes wrote.
Mic listed the four factors Forbes considered while making its ranking: average monthly rent in the fourth quarter of 2016, the rate change in rent from the end of 2015 to 2016, apartment vacancy rate and the amount of monthly household income spent on rent.
Despite being ranked the third-best city, Kansas City had the best “rental affordability” among the 46 cities, Forbes wrote, with just 16 percent of renters’ household income spent on rent.
The median household income in Kansas City in the fourth quarter of 2016 was $63,121.
Four of the top five best cities can be found in the Midwest. Indianapolis was ranked as the most affordable city, followed by St. Louis, Kansas City, San Antonio and Columbus, Ohio.
Data were provided by Marcus & Millichap, a Kansas City-based real estate agency. Kansas City’s monthly rental rate in the fourth quarter of 2016 was $866, behind Columbus, Ohio’s $847, St. Louis’ $829 and Indianapolis’ $806.
In Kansas City, rent rose just 2.7 percent at the end of 2016 compared to the same quarter in 2015. The average vacancy rate in the last quarter of 2016 was 5 percent, more than a full percentage point higher than the average, meaning Kansas Citians have more options when searching for places to rent compared to the other 46 cities Forbes look at.
Other affordable cities included on the list were San Antonio and Phoenix.
Forbes also said Miami is the worst city for renters, in part because of a low vacancy rate, which inflated rental costs by 6.6 percent over the period ending in late 2016.
San Diego and Manhattan came in at second and third on the “worst” list.
San Francisco, with its nearly $3,000 average monthly rent, came in at 11th worst, partly because of a dip in year-over-year rental rates of 0.2 percent and a relatively high median household income of $104,558.