Short answer: According to Census ACS 1-year estimates, the US median 3-bedroom gross rent rose from $1,329 a month in 2021 to $1,677 in 2024, about 26.2%. Among the 50 largest rental markets it ranged from +2.6% in Minneapolis, MN to +60.9% in Washington, DC.
Definition
Rent growth vs home price growth compares how fast market rents rose with how fast home values rose over the same period. When rents grow faster than prices, the gross rent multiplier falls and rentals get cheaper per dollar of rent; when prices grow faster, it rises.
By the numbers: Census ACS 2021 to 2024: US median 3-bedroom gross rent $1,329 to $1,677 (+26.2%), median home value $281,400 to $360,600 (+28.1%). Freddie Mac's 30-year rate averaged 2.96% in 2021 vs 7.40% now.
What changed from 2021 to now
Using the Census Bureau's American Community Survey, the median 3-bedroom gross rent in the US went from $1,329 a month in 2021 to $1,677 in 2024, up 26.2%. The median owner-occupied home value went from $281,400 to $360,600, up 28.1%.
So rents and prices rose by roughly the same amount. The big change was the loan: Freddie Mac's 30-year fixed rate averaged 2.96% across 2021 and was 7.40% on October 15, 2026.
Good to know: These are survey medians, not repeat sales of the same homes. The rent is for 3-bedroom rentals and the value is for owner-occupied homes, so they are different houses. ACS gross rent includes utilities the renter pays.
Same typical home, then and now
Here is a rental priced at the US median value with the US median 3-bedroom rent, bought with 20% down on a 30-year loan at each year's rate. Property tax uses the US effective rate of 0.89% (Census ACS 2024); insurance is assumed at $1,200 a year both times; FirstDoor's defaults cover vacancy (5%), maintenance (5%) and management (8%).
| 2021 | Now | |
|---|---|---|
| Median home value | $281,400 | $360,600 |
| Median 3-bed rent / mo | $1,329 | $1,677 |
| 30-year rate (Freddie Mac) | 2.96% (2021 avg) | 7.40% (October 15, 2026) |
| Mortgage (P&I, 20% down) | $944 | $1,997 |
| Cash flow / mo | −$163 | −$990 |
| Cash-on-cash | -3.0% | -14.3% |
| DSCR | 0.83 | 0.50 |
| Break-even rent / mo | $1,528 | $2,884 |
Rent rose about $348 a month, but the mortgage payment rose about $1,053. That is why cash flow went from −$163 to −$990, and the rent needed to break even climbed from about $1,528 to about $2,884.
Tip: Open today's version in the calculator and try a lower price or a bigger down payment to see what it takes to get back to $0. The break-even rent guide explains the formula.
Rent and price growth in the 50 biggest rental markets
The table compares 2021 and 2024 Census ACS 1-year medians (tables B25031 and B25077) for the 50 US cities with the most renter households. Cities are sorted by how far rent growth beat price growth, so the top rows are where rentals got relatively cheaper to buy. The last column is the gross rent multiplier (price ÷ yearly rent); lower is better for buyers.
| City | 3-bed rent / mo | Rent change | Home value | Value change | GRM |
|---|---|---|---|---|---|
| Washington, DC | $1,595 → $2,567 | +60.9% | $669,900 → $733,400 | +9.5% | 35.0 → 23.8 |
| Cincinnati, OH | $1,016 → $1,588 | +56.3% | $190,300 → $263,300 | +38.4% | 15.6 → 13.8 |
| Atlanta, GA | $1,372 → $1,918 | +39.8% | $375,500 → $462,200 | +23.1% | 22.8 → 20.1 |
| Portland, OR | $1,846 → $2,364 | +28.1% | $520,200 → $588,200 | +13.1% | 23.5 → 20.7 |
| Denver, CO | $1,943 → $2,570 | +32.3% | $541,500 → $636,400 | +17.5% | 23.2 → 20.6 |
| Kansas City, MO | $1,204 → $1,641 | +36.3% | $213,400 → $261,600 | +22.6% | 14.8 → 13.3 |
| Las Vegas, NV | $1,476 → $2,067 | +40.0% | $362,400 → $458,300 | +26.5% | 20.5 → 18.5 |
| Philadelphia, PA | $1,229 → $1,573 | +28.0% | $220,700 → $253,600 | +14.9% | 15.0 → 13.4 |
| Columbus, OH | $1,202 → $1,672 | +39.1% | $219,200 → $279,900 | +27.7% | 15.2 → 14.0 |
| Phoenix, AZ | $1,545 → $2,142 | +38.6% | $352,600 → $454,900 | +29.0% | 19.0 → 17.7 |
| Sacramento, CA | $1,760 → $2,170 | +23.3% | $449,600 → $515,800 | +14.7% | 21.3 → 19.8 |
| Jersey City, NJ | $1,794 → $2,249 | +25.4% | $487,400 → $571,700 | +17.3% | 22.6 → 21.2 |
| Fresno, CA | $1,456 → $1,902 | +30.6% | $321,300 → $396,300 | +23.3% | 18.4 → 17.4 |
| Oakland, CA | $2,220 → $2,474 | +11.4% | $848,600 → $884,000 | +4.2% | 31.9 → 29.8 |
| Long Beach, CA | $2,067 → $2,676 | +29.5% | $693,600 → $849,500 | +22.5% | 28.0 → 26.5 |
| Boston, MA | $1,873 → $2,153 | +14.9% | $659,700 → $722,800 | +9.6% | 29.4 → 28.0 |
| Dallas, TX | $1,425 → $1,856 | +30.2% | $267,600 → $340,400 | +27.2% | 15.6 → 15.3 |
| Charlotte, NC | $1,439 → $1,969 | +36.8% | $321,400 → $431,900 | +34.4% | 18.6 → 18.3 |
| Omaha, NE | $1,281 → $1,658 | +29.4% | $211,900 → $269,500 | +27.2% | 13.8 → 13.5 |
| Colorado Springs, CO | $1,719 → $2,145 | +24.8% | $390,500 → $479,500 | +22.8% | 18.9 → 18.6 |
| Tampa, FL | $1,462 → $2,176 | +48.8% | $336,200 → $494,400 | +47.1% | 19.2 → 18.9 |
| Orlando, FL | $1,685 → $2,293 | +36.1% | $319,800 → $430,200 | +34.5% | 15.8 → 15.6 |
| Los Angeles, CA | $2,181 → $2,564 | +17.6% | $812,800 → $947,900 | +16.6% | 31.1 → 30.8 |
| Seattle, WA | $2,614 → $2,951 | +12.9% | $848,100 → $950,800 | +12.1% | 27.0 → 26.8 |
| Raleigh, NC | $1,442 → $1,909 | +32.4% | $340,200 → $450,300 | +32.4% | 19.7 → 19.7 |
| Chicago, IL | $1,448 → $1,661 | +14.7% | $297,300 → $341,200 | +14.8% | 17.1 → 17.1 |
| Indianapolis, IN | $1,103 → $1,406 | +27.5% | $188,700 → $241,500 | +28.0% | 14.3 → 14.3 |
| Fort Worth, TX | $1,486 → $1,964 | +32.2% | $249,000 → $330,500 | +32.7% | 14.0 → 14.0 |
| Houston, TX | $1,436 → $1,819 | +26.7% | $236,700 → $301,200 | +27.2% | 13.7 → 13.8 |
| New York, NY | $1,864 → $2,094 | +12.3% | $685,700 → $778,600 | +13.5% | 30.7 → 31.0 |
| Louisville, KY | $1,111 → $1,294 | +16.5% | $203,900 → $241,700 | +18.5% | 15.3 → 15.6 |
| Nashville, TN | $1,660 → $2,064 | +24.3% | $346,700 → $438,800 | +26.6% | 17.4 → 17.7 |
| San Jose, CA | $3,027 → $3,368 | +11.3% | $1,119,500 → $1,271,200 | +13.6% | 30.8 → 31.5 |
| Albuquerque, NM | $1,232 → $1,550 | +25.8% | $251,500 → $324,600 | +29.1% | 17.0 → 17.5 |
| Jacksonville, FL | $1,340 → $1,767 | +31.9% | $239,400 → $325,300 | +35.9% | 14.9 → 15.3 |
| Austin, TX | $1,946 → $2,217 | +13.9% | $482,900 → $571,000 | +18.2% | 20.7 → 21.5 |
| Tucson, AZ | $1,317 → $1,688 | +28.2% | $224,800 → $299,700 | +33.3% | 14.2 → 14.8 |
| San Diego, CA | $2,522 → $3,052 | +21.0% | $768,800 → $980,700 | +27.6% | 25.4 → 26.8 |
| Oklahoma City, OK | $1,159 → $1,479 | +27.6% | $190,900 → $259,300 | +35.8% | 13.7 → 14.6 |
| San Antonio, TX | $1,382 → $1,707 | +23.5% | $197,600 → $260,900 | +32.0% | 11.9 → 12.7 |
| Tulsa, OK | $1,103 → $1,371 | +24.3% | $172,000 → $234,400 | +36.3% | 13.0 → 14.2 |
| El Paso, TX | $1,058 → $1,319 | +24.7% | $152,800 → $209,600 | +37.2% | 12.0 → 13.2 |
| Milwaukee, WI | $1,086 → $1,273 | +17.2% | $160,100 → $207,900 | +29.9% | 12.3 → 13.6 |
| Minneapolis, MN | $1,703 → $1,748 | +2.6% | $319,100 → $368,300 | +15.4% | 15.6 → 17.6 |
| Cleveland, OH | $938 → $1,105 | +17.8% | $83,400 → $109,600 | +31.4% | 7.4 → 8.3 |
| Baltimore, MD | $1,383 → $1,569 | +13.4% | $193,100 → $247,400 | +28.1% | 11.6 → 13.1 |
| Memphis, TN | $1,113 → $1,418 | +27.4% | $142,800 → $209,800 | +46.9% | 10.7 → 12.3 |
| Detroit, MI | $1,090 → $1,255 | +15.1% | $69,300 → $95,900 | +38.4% | 5.3 → 6.4 |
| Miami, FL | $1,835 → $2,179 | +18.7% | $411,300 → $598,200 | +45.4% | 18.7 → 22.9 |
| United States | $1,329 → $1,677 | +26.2% | $281,400 → $360,600 | +28.1% | 17.6 → 17.9 |
Rent grew faster than prices in 25 of these 49 cities and slower in 24. Rent growth ranged from +2.6% in Minneapolis, MN to +60.9% in Washington, DC; home values from +0.6% in San Francisco, CA to +47.1% in Tampa, FL.
Good to know: City-level ACS numbers are survey estimates with margins of error, and 3-bedroom rentals are a small sample in some cities, so treat any single city's figure as approximate. ACS reports rents above $3,500 only as "$3,500+", so San Francisco, CA is left out of the table. Each city links to its full market page with current numbers.
What it means if you are buying now
Rent growth is not the same as a good deal. Even in Washington, DC, Cincinnati, OH and Atlanta, GA, where rents beat prices by the widest margin, the rate went from about 3% to over 7% for everyone. A city where the GRM fell is a place to look harder, not a place to buy blind.
Three habits help:
- Underwrite today's rent, not next year's. Use comparable rentals and leave future rent growth out of the decision. If the deal only works with a raise, it does not work yet.
- Check break-even rent first. At 7.40%, it is the fastest way to see whether a listing can ever cash-flow at its price.
- Stress-test the rate. If you plan to refinance later, run the deal at today's rate anyway. A refinance is an upside, not a plan.
Red flag: A seller's pro forma that assumes 5% to 10% yearly rent growth. The 2021–2024 jump came with unusual inflation; it is not a promise about the next three years.
Worked example
A rental at the US median home value ($360,600, Census ACS 2024) renting for the US median 3-bedroom gross rent ($1,677/mo). 20% down at 7.40% for 30 years (Freddie Mac average, October 15, 2026), property tax at the US effective rate of 0.89% ($3,211/yr), $1,200/yr insurance (assumed), 5% vacancy, 5% maintenance, 8% management, closing costs assumed at 3% ($10,818).
| Price | $360,600 |
| Rent / mo | $1,677 |
| Mortgage (P&I) | −$1,997 |
| Operating costs (/mo) | −$669 |
| Same home in 2021: cash flow | −$163 |
Frequently asked questions
How much have rents gone up since 2021?
According to Census ACS 1-year estimates, the US median 3-bedroom gross rent rose from $1,329 a month in 2021 to $1,677 in 2024, about 26.2%. Among the 50 largest rental markets it ranged from +2.6% in Minneapolis, MN to +60.9% in Washington, DC.
Have home prices gone up faster than rents?
Nationally they rose by about the same amount: median home value +28.1% versus 3-bedroom rent +26.2% from 2021 to 2024 (Census ACS). Rents grew faster than prices in 25 of the 49 big cities FirstDoor compared and slower in 24.
Why is it harder to cash-flow a rental now than in 2021?
Mostly the mortgage rate. Freddie Mac's 30-year rate averaged 2.96% in 2021 and was 7.40% on October 15, 2026. For a home at the US median value with 20% down, the monthly principal and interest went from about $944 to about $1,997, while the median 3-bedroom rent rose only about $348.
Should I count on rent growth when buying a rental?
It is safer not to. Underwrite the deal at today's market rent and treat future increases as upside. If a deal only works with rent growth, it is a bet on the market, not a cash-flowing rental.
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Sources
Educational content, not financial advice. Loan programs and requirements change; confirm with a lender.