Cheapest Neighborhoods in Austin: 9 Budget-Friendly Areas for 2025

Austin rents have been climbing fast, and not just in its popular downtown corridor. But in 2025, a mix of new apartment deliveries and cooling demand is opening up more ways to find cheap rent Austin without settling for less. According to the Wall Street Journal, Austin is seeing 15% vacancy in luxury and new-build inventory, leading to rent concessions such as move-in deals and free months.

This guide breaks down the cheapest neighborhoods in Austin, including nearby suburbs where renters can still score a deal. From affordable Austin neighborhoods in North and South Austin to spacious budget neighborhoods in the suburbs, these picks combine lower-than-average rents with quality-of-life essentials like transit, safety, and space.

We’ll start with a quick rent snapshot, walk through our affordability criteria, and then profile each neighborhood with current rent data, commute times, and perks. You’ll also find renter hacks to stretch your budget and a handy FAQ for car-free living, lease tips, and more.

Austin Rent Snapshot

Median apartment prices citywide

Our latest Austin rent report from July 2025 shows that the median rent across all unit types in Austin is $1,381, with one-bedrooms averaging $1,224 and two-bedrooms averaging $1,489. That puts Austin slightly below the national median, but it still ranks as the 56th most expensive large city in the U.S. Despite the city’s ongoing popularity with tech workers, creatives, and remote professionals, rent prices have softened significantly. Rents are currently down 6.1% year-over-year, thanks to a surge in new apartment construction and increased availability.

Here’s a quick look at average rents by unit size:

• Studio: $1,285
• 1 Bed: $1,224
• 2 Bed: $1,489
• 3+ Bed: $2,546

While demand remains strong in core areas like South Congress and The Domain, renters now have more leverage, especially in lease-up buildings offering move-in incentives and price breaks. Whether you’re seeking a compact studio or extra square footage in the suburbs, Austin’s cooling market makes 2025 a strategic time to sign a lease.

Why rents keep climbing

Austin’s growing, and people continue to move here for tech jobs, and that steady demand keeps pushing prices up. Despite all of the demand, the city isn’t building rentals fast enough—especially in the central parts of the city. The apartment inventory that does exist is competitive and getting snatched up quickly. Mortgage rates are also keeping a lot of renters out of the home buying market who might have entered sooner.

Austin’s Project Connect is a huge update to the city’s transit system, with new rail and rapid bus lines in the works. This is great news for commuters, but it also means neighborhoods near those future stops are heating up fast. It’s further fueling the rise in rent in most places, especially in neighborhoods with nightlife, amenities, and close to the action.

Who benefits from budget neighborhoods in Austin?

Austin’s affordable neighborhoods aren’t just about saving money. They’re an ideal fit for renters looking for more value without sacrificing convenience or comfort. The rise in renters includes recent grads figuring out their next move, service workers who want to live near where they work, remote professionals balancing space and commute time, and retirees ready to downsize without leaving the city behind.

The biggest wins are lower rents that free up room in your budget. Faster commutes, especially with new transit options in the mix, and a stronger sense of community than you’ll find in more expensive, high-rise-heavy areas are also desirable in Austin.

If you’re using Apartment List, filters like commute time, must-have amenities, and room type can help surface these neighborhoods faster. You’ll spend less time searching and more time settling in.

Texas Rent Check-In

Even with rent drops, Austin still ranks among the priciest rental markets in the state—12th in North America, according to Numbeo.

But there’s a shift: Dallas–Fort Worth recently overtook Austin in average rent, thanks in part to Austin’s surge in new construction and higher vacancy rates. Austin’s no longer the most expensive city in Texas—but it’s still one of the most competitive.

Our Affordability Criteria

Price thresholds and data sources

To make the cut, a neighborhood had to have a median one-bedroom rent at least 15% lower than the citywide average. That means if the citywide 1-bedroom median is $1,224, we looked for neighborhoods where rents hovered closer to $1,040 or below.

We pulled rent data from a few trusted sources: the Apartment List Rent Index and U.S. Census data from the American Community Survey.

To keep things accurate, we used 12-month rolling averages and updated them with the latest numbers from early 2025. That helps smooth out short-term swings and gives a clearer picture of what renters can actually expect.

Safety, schools, and transit filters

We also didn’t just look at the rental prices involved. To make sure these budget neighborhoods offer real livability, we added a few extra filters.

First, we considered safety. We only included areas with violent crime rates below the citywide average. We also looked at school ratings, focusing on neighborhoods with elementary schools that score at least 6 out of 10 on GreatSchools.

Location still matters, so we also limited our picks to places where you can get to downtown Austin in 45 minutes or less by public transit. Our goal is to make sure that even if you don’t have a car, you’re not stuck with a long commute. We also considered new buildings in their “lease-up” phase, which is the window when landlords offer deals, like a free month of rent or waived fees, to fill units fast.

When we put everything together, these filters help make sure “cheap” doesn’t mean cutting corners on safety, schools, or everyday convenience.

Cheapest Neighborhoods in Austin

North Austin steals (Brentwood, Highland, Georgian Acres)

Brentwood

• Median 1-bed rent (2025): $1,033 (about 13% below city median)
• Commute: 25–30 minutes to Downtown by bus, 10 minutes to the Domain
• Amenities: Tree-lined streets, local bakeries, and a walkable strip along Burnet Road
• Best for: Renters who want a quiet, community-focused neighborhood that’s close to it all

Highland

• Median 1-bed rent (2025): $1,014 (about 14% below city median)
• Commute: Around 25 minutes to Downtown via MetroRail or bus
• Amenities: Newly redeveloped Highland Mall area, library branch, and CapMetro rail access
• Best for: Commuters and students looking for access to rail and budget-friendly units

Georgian Acres

• Median 1-bed rent (2025): $1,025 (about 13% below city median)
• Commute: 30–35 minutes to Downtown by transit, 10–15 to the Domain
• Amenities: Access to North Lamar restaurants, neighborhood parks, and bus lines
• Best for: Car-light commuters who value affordability and cultural diversity

South Austin Bargains (Garrison Park, South Lamar)

Garrison Park

• Median 1-bed rent (2025): $1,032 (about 13% below city median)
• Commute: Around 30 minutes to Downtown by bus or bike, about 20 minutes to the Domain by car
• Amenities: Barton Creek Greenbelt is just minutes away, plus laid-back bars, food trucks, and a tight-knit local scene
• Trade-offs: Some buildings are older, and big-name grocery stores are a few minutes’ drive away
• Best for: Renters who want outdoor access, solid safety, and local flavor—all without downtown pricing

South Lamar (SoLa)

• Median 1-bed rent (2025): $1,043 (about 12% below city median)
• Commute: About 30–35 minutes to Downtown by CapMetro Rapid bus (Route 803), and around 20 minutes to the Domain
• Amenities: Music venues, breweries, restaurants, plus access to new bike lanes and greenbelt spots
• Trade-offs: Housing is a mix—some new builds, some older units. Limited parking and traffic can be a hassle
• Best for: Young professionals and creatives looking for nightlife, walkability, and a bit of grit—on a budget

Emerging Suburb Alternatives (Hutto, Pflugerville, Lockhart)

If you're open to living just outside Austin, there's real value to be found. These suburbs sit 20 to 35 miles from downtown and offer something the city rarely does anymore—more space for your money, a quieter pace, and communities on the rise.

Manor

• Median 1-bed rent (2025): $1,019 (about 14% below the city median)
• Commute: Around 30 minutes to Downtown Austin by car; CapMetro service is limited
• Amenities: New subdivisions with larger floor plans, fast-growing retail, and greenbelt access
• Trade-offs: Less robust transit and fewer walkable grocery options
• Best for: Remote workers and renters who want a newer home feel without paying inner-city prices

Pflugerville

• Median 1-bed rent (2025): $1,041 (about 12% below city median)
• Commute: Around 25–30 minutes to Downtown by car
• Amenities: Larger units, family-friendly neighborhoods, and proximity to Tesla and Samsung supplier sites
• Trade-offs: Traffic during rush hour and minimal public transit
• Best for: Renters with a car who want space, quiet, and proximity to major employers

Hutto

• Median 1-bed rent (2025): $1,052 (about 11% below city median)
• Commute: About 30–35 minutes to Downtown via toll roads
• Amenities: Newer construction, local markets, and strong community feel
• Trade-offs: Farther from urban amenities and nightlife
• Best for: Renters prioritizing square footage, newer builds, and small-town charm

Smart Search Tactics on Apartment List

Scoring a great deal in Austin isn’t just about luck, it’s about smart filtering. You can set custom price alerts to be the first to know when a listing in your budget goes live. Use the commute-time filter to find neighborhoods that get you downtown or to your office in under 45 minutes—a huge help in a city where I-35 traffic can stretch even short drives.

One of the best moves? Stack your filters. Looking for a pet-friendly unit with in-unit laundry and gated parking? Select all three. You’ll skip the listings that look affordable on paper but don’t actually meet your needs once fees and trade-offs add up.

Budgeting Hacks Beyond Rent

To keep your finances healthy, aim to spend no more than 30% of your gross monthly income on rent plus utilities. That leaves more room for essentials like gas, groceries, and savings—especially important in a city with rising living costs.

Here are a few easy wins for Austin renters:

• Split Wi-Fi or streaming plans with roommates or neighbors
• Choose energy-efficient appliances and LED lighting to reduce monthly bills
• Use ceiling fans and thermal curtains to ease A/C strain during triple-digit summers
• Skip bundled utilities and you might save more by paying for what you use individually
• Install a smart or programmable thermostat (Nest, Ecobee, etc.), if allowed
• Unplug unused electronics and chargers—Texas electricity prices can spike in summer
• Split a 2-bedroom unit with a roommate to cut costs dramatically per person
• Look for units with real kitchens so you can cook at home and avoid dining out daily
• Ask about deposit flexibility if you have strong credit or consistent income history

Austin renters may also qualify for savings programs like:

• Austin Energy’s Customer Assistance Program (CAP) for utility discounts
• Affordable Connectivity Program for discounted internet access

Lease Negotiation and Timing

The best time to land a deal in Austin? Between November and February. This is when vacancies peak and landlords are more open to concessions like discounted rent, reduced deposits, or waived pet fees, especially in newer buildings.

If you’re touring a fresh property, ask if it’s in lease-up, or that early phase when property managers are actively trying to fill units fast. Perks could include a free month, gift cards, or bundled amenities.

When you’re ready to negotiate a lease, be polite but show that you’ve done your research. Pull a few comparable Apartment List listings to demonstrate market value. A data-backed ask signals to the leasing team that you know what you're doing—and makes them more likely to meet you halfway.

Frequently Asked Questions About Austin’s Cheapest Neighborhoods

How fast are rents rising in these neighborhoods?

We don't have full data for 2025 yet, but citywide rents dropped by about 3.7% in 2024 and remain roughly 22% below their summer 2023 peak. Budget neighborhoods grew more modestly—around 4–6%—still slower than high-demand districts. With vacancy around 15% and new inventory in play, rents are likely to stay level in the short term.

Are there income-restricted apartments in these areas?

Yes. Income-restricted and voucher-accepting units are listed on the city’s AHOST tool. New developments like Twelve100 near the Domain also secure hundreds of units for moderate- to low-income renters.

Can I live car-free in these neighborhoods?

Absolutely. Areas like Windsor Hills, Allandale, and North Shoal Creek are served by CapMetro and MetroRail, enabling 45-minute or shorter commutes. South picks like Garrison Park IS bikeable and bus-accessible, though having a car helps for errands.

What are the safest cheap neighborhoods in North/South Austin?

All neighborhoods featured here—including Allandale, Gracywoods, and North Shoal Creek (North); plus Garrison Park and South Lamar (South)—report violent crime rates at or below the city average.

What commute should I expect from these areas?

Expect 25–40 minutes to Downtown via transit and 15–30 minutes by car. North Austin neighborhoods generally offer faster access to major bus and rail lines, while South Austin picks trade a little more time for space and scenery.

How much space can I expect in these areas?

In-city one-bedrooms in budget zones range from 600–700 sq ft. Suburbs like Manor, Hutto, and Pflugerville often stretch closer to 750–850 sq ft, thanks to newer builds and lower land costs.

When’s the best time to move for deals?

Between November and February. That’s peak vacancy season, and developers tend to offer sweeteners like one free month or reduced deposits to close leases faster.

How do I negotiate a lease like a pro?

Ask during lease-up. Start with polite questions about waived fees or extra perks, and back it up with a few comps from Apartment List. You’re not demanding—you’re showing you’ve done the math.

Will new development impact rent?

Yes. The nearly 50,000 new units built in 2023–24 helped cool rents across Austin. But as construction slows in late 2025, demand from employers like Samsung and Tesla could start nudging prices upward again—especially in nearby suburbs.

What’s the 30% rule and does it really matter?

The 30% rule says rent plus utilities shouldn’t eat up more than 30% of your gross monthly income. It’s a solid target, though many Austin renters stretch past it. Sticking close helps preserve flexibility and avoid stress.

Will rents go up again in 2026?

Experts from CoStar and Realtor.com say rents may stay renter-friendly through 2025—but that could shift. As vacancy rates drop and fewer new projects break ground, rent increases could return by late 2026. If you find a good deal now, it might be smart to lock it in.