Is Chicago, IL Affordable for Renters? [2025]

Chicago is becoming more difficult for renters to afford in 2025. Median rent sits at $1,820, while the national median average is $1,401. That’s a noticeable 54% difference in spending on housing costs for anyone living in or moving to Chicago.

And it’s not just rent. Transportation costs in Chicago are 38% higher than the national average, making overall living expenses steeper for residents.

If you’re considering moving to Chicago or wondering if it’s possible to save by relocating within the city, this guide covers everything you need to know about Chicago rental prices, current trends, affordability, and more.

What Are the Current Trends in Chicago’s Rental Market?

Rents in the Windy City are on the rise in 2025. After a gradual decline starting in 2022, reduced construction and limited housing supply have driven Chicago rental prices back up.

Following the pandemic-era rental slump, more people moving to the city have revived demand. While some neighborhoods still offer negotiating room, popular areas like Edgewater, the Loop, and the Lakefront experience fierce competition and fast leasing.

Overall, rents in Chicago have increased 4.7% year over year. The first six months of 2025 alone saw a 9.1% jump, up from a 6.2% increase during the same period in 2024. Currently, Chicago ranks as the 21st most expensive large city, with a median rent of $1,820. With demand growing faster than supply, you can expect to see continued rent hikes throughout the year.

Average Rent Prices in Chicago, IL

Rental prices in Chicago vary based on building age, amenities, unit size, and neighborhood. Here is a snapshot of average rent prices by unit type:

What is the Average Rent of a 1-Bedroom Apartment in Chicago?

As of July 2025, the average rent for a 1-bedroom in Chicago is $2,280. The total varies depending on factors such as the neighborhood or location, a building’s age, proximity to public transport, and whether it comes with amenities like in-unit laundry, a pool, or a fitness center.

What is the Average Rent of a 2-bedroom Apartment in Chicago?

As of July 2025, the average rent for a 2-bedroom in Chicago is $2,906. Two-bedroom apartments offer more square footage for those living with family, roommates, or remote workers who require office space.

How Much Rent Can I Afford in Chicago?

Average rents in Chicago are above the national average, but you can get great value by choosing a neighborhood in popular areas to find savings.

Here’s how Chicago compares in 2025:

*Cost of Living Index (U.S. average = 100) data sourced from BestPlaces.

As illustrated above, Chicago ranks well in the cost of living index among large cities. It’s more affordable than other Western cities, and even Denver. The allure of the Windy City? You can still enjoy city living with more job opportunities, fine dining (yes, we mean the pizza), nightlife, and culture, without having to sell a kidney.

Before you start looking for your perfect match, it’s a good idea to review budgeting tools that can help you outline what you can afford.

The 30% Rule

When it comes to your finances, there are a few “golden rules”. One recommended by many finance experts includes the 30% rule, which says you should spend no more than 30% of your gross monthly income (before taxes are taken out) on rent.

For example, if you earn $3,800 per month (pre-tax), your ideal rent budget would be around $1,140 or less.

While the 30% rule is a helpful starting point, it’s not a hard-and-fast rule. Your personal circumstances, such as living in high-cost cities like Chicago, may justify some flexibility in spending. Use the 30% rule as a benchmark to guide your budget.

The 50/30/20 Rule

Another budgeting tool that experts recommend is the 50/30/20 rule (which applies to your after-tax income).

• 50% goes towards needs (rent, groceries, utilities, etc.)
• 30% for wants (dining out, dating, hobbies, etc.)
• 20% for savings or debt repayment

With this tool, rent is just one component of your needs, so you’ll need to break down what you can afford to spend.

Many people prefer the 50/30/20 rule because it offers more flexibility for needs and balances housing expenses when compared to other financial matters.

The 3x Rent Rule

Landlords often employ this rule to determine if you can afford to rent from them. The 3x rent rule states that your gross monthly income (before taxes) should be 3x your rent. For example, to prove you can afford a $1,300 apartment rental, you should make $3,900 per month.

Landlords appreciate the peace of mind that comes with knowing their renters can pay the rent. If you can’t meet the 3x rule, having a strong rental history or offering a larger deposit could help you secure the lease.

How Does the Overall Cost of Living in Chicago Compare to the National Average?

Currently, Chicago’s cost of living is approximately 16% higher than the US national average and about 14% higher than the Illinois state average. Transportation and miscellaneous expenses are two driving factors, where Chicagoans spend roughly 30% more than the national average.

Housing is also a key factor, with rents averaging 24.4% higher than the national average. While Chicago isn’t the most expensive city in the U.S., it certainly isn’t cheap. With a solid budget and strategies to save money, it’s possible to make it work.

Are Utilities and Other Expenses Affordable in Chicago?

Utilities in Chicago are generally affordable, but costs can rack up. Most utility costs are at the national average, but gas and fuel costs are higher than the average expenditure for many Americans.

Chicago renters will find themselves spending an average of $66 on gas, $147 on electricity, and a mere $39 for water.

Owning a car in the city is expensive, with additional costs to consider, like parking, fuel, and car maintenance. Chicago’s public transit, operated by the Chicago Transit Authority (CTA), offers competitive pricing compared to car ownership, but many still use cars to get to and from work or school.

Internet access costs the average household $70/month, and mobile phone plans follow closely behind at $60/month.

How Does the Cost of Renting Vary By Neighborhood in Chicago?

Where you set up shop in the Windy City will greatly impact your cost of living. Below are the average rents across popular Chicago neighborhoods to help you find the best areas for your budget.

Rent in Chicago’s Cheapest Neighborhoods

If you want your rent to go further each month, there are a few Chicago neighborhoods where prices are—dare we say—affordable. They’re typically less glitz and glam, but the prices are often appealing to renters.

Far Southeast Side Neighborhood

Far Southeast Side is an excellent option for renters who want space, peace, and ultra-affordable pricing. Popular with long-term Chicago residents, essential workers, and those who prefer a quieter, residential vibe, this neighborhood offers single-family homes and low-rise apartments near natural areas including Calumet Park and Lake Calumet. Renters here often enjoy larger living spaces and easy parking—perfect for people who don’t mind a longer commute in exchange for savings.

Southwest Side Neighborhood

The Southwest Side attracts renters who want suburban-style living with Chicago city limits pricing. It’s popular with working families, tradespeople, and anyone looking for a tight-knit community feel. With multiple parks, affordable restaurants, and proximity to Midway Airport, it offers a convenient home base for people who commute by car. You’ll find a mix of bungalows, vintage apartments, and newer developments, all at some of the lowest rents in the city.

South Side Neighborhood

South Side offers some of the lowest rental prices in Chicago, appealing to students, artists, and renters who need to keep costs low while remaining connected to the city. Areas like Woodlawn and parts of Washington Park are popular with University of Chicago students, while others enjoy proximity to Jackson Park and the lakefront. If you don’t mind older buildings and are focused on budget and community, the South Side can be an excellent choice.

Rogers Park Neighborhood

Rogers Park is a diverse, lakefront neighborhood on Chicago’s Far North Side known for its welcoming, artsy vibe and affordable rents. With direct access to Lake Michigan beaches, Loyola University, and abundant green spaces, it appeals to renters who value culture, community, and outdoor activities. The area boasts a mix of vintage apartments and newer developments, plus excellent public transit options for commuting downtown. It’s ideal for those who want a laid-back lifestyle without sacrificing city access.

Rent in Chicago’s Most Expensive Neighborhoods

Chicago’s premium neighborhoods don’t come cheap. These areas offer a range of luxury living, walkability, and proximity to the best the city has to offer. Whether you’re interested in culture, fine dining, major offices, or scenic lakefront views, these neighborhoods have something to offer.

Near North Side Neighborhood

Renters who want to be in the center of life in Chicago gravitate to the Near North Side. Stretching from River North to Streeterville, the neighborhood is brimming with luxury condos and high-rise apartments. Expect incredible views of Lake Michigan, iconic landmarks, and fast access to the Magnificent Mile.

It’s got all the city glamor renters could ask for, and due to its proximity to downtown, it’s a hub for workers in healthcare, finance, and consulting. Designer shopping? Say no more.

The Loop Neighborhood

In The Loop, you can stay “in the loop” with whatever is happening in the city. As a central location, you’ll be in the center of it all with a less than ten-minute commute to major offices.

Millennium Park is at your doorstep, and the sweeping urban views delight throughout all four seasons. Ideal for renters who want it all, work, culture, and entertainment at their fingertips.

West Loop Neighborhood

From industry of decades past to a trendy and happening spot, the West Loop is one of Chicago’s most popular places to live. What’s the area known for? Loft apartments with natural lighting, upscale restaurants, and a short trip to downtown. Similar to other industrial warehouse neighborhoods turned residential, it’s a hub for foodies and young professionals featuring hip nightlife, walkable streets, and an emphasis on luxury living.

Near West Side Neighborhood

The Near West Side is a hotspot for young couples, students, and professionals working in the city. As a neighborhood close to the downtown, it has a mix of classic Chicago flats and new apartments (often with slightly more square footage).

Near West Side appeals to those attending UIC or those working in the medical district. Little Italy and Pilsen are nearby and also offer

What is a Comfortable Salary for a Renter in Chicago?

Renters in Chicago should earn a salary of $72,500 (or $6,000 per month) to comfortably afford Chicago’s median rent of $1,820. This is consistent with living wage estimates, which range from $51,800 to $72,500 (based on your expenses).

A rule of thumb is to spend 30% of your gross income on rent, meaning an annual salary of $72,500 covers housing costs without too many sacrifices.

However, many renters manage with tighter budgets by choosing more affordable neighborhoods, finding roommates, or opting for smaller units. Even incomes closer to $51,000 can work if you make and stick to a spending plan that matches your lifestyle. While we all may want to earn more money, the ideal salary will depend on your personal preferences, goals, and lifestyle.

Are There Hidden Costs to Renting in Chicago?

Let’s be honest, there are hidden costs to renting everywhere, not just in Chicago. These “fun” extras may include security deposits, application fees, renter’s insurance, and of course, utilities and internet.

If you own a car, there may be parking fees for your building (and the city). Other hidden costs that creep up include moving costs, penalties, and pet fees. Creating a plan and budget for your move can help you avoid surprises.

Here are a few standard fees in Chicago to plan for:

• Renter’s Insurance: While renter’s insurance isn’t required by law in Chicago or the state of Illinois, it’s highly recommended. Plans typically cost $13 to $25 per month, with basic policies starting as low as $7.
• Application + Admin Fees: When applying for an apartment, set aside $40 to $150 for application fees and admin or move-in fees of $100 to $300.
• Parking + Amenities: Car owners should budget between $100-$400/month, depending on location. Amenities may also incur additional costs for features such as pools or gyms.
• Pets: Pet rent has become the norm in many cities. Owners should set aside money for refundable pet deposits (ranging from $100 to $600), non-refundable fees (ranging from $250 to $500), and monthly pet rent (ranging from $20 to $60).
• Moving Costs: Moving costs in Chicago will vary, but you can expect to spend between $350 for a studio, up to $1,800 for multi-bedroom apartments. If you want to save money, opt for the DIY option, which involves renting a truck for $25 to $75 per day, plus the cost of gas or mileage.
• Security Deposits: Chicago landlords have started switching from traditional security deposits to non-refundable move-in fees, which cost between $300 $500. Traditional security deposits can be 1.5 times the monthly rent and no more, according to the law.

What Are the Best Ways to Save on Rent in Chicago?

With Chicago’s competitive market, you’ll need a solid strategy to save on rent. Here are a few tips on ways to stretch your budget without making (too many) sacrifices:

1. Check Out Rental Assistance Programs

Explore programs from the Chicago Housing Authority, Rental Assistance Program (RAP), Illinois’s Court-Based Rental Assistance Program (CBRAP), and local nonprofits that may help with security deposits, rent, and emergency support.

2. Negotiate Your Rental Rate

Renters with a high credit score or a reliable income may be able to negotiate a lower rent price. If landlords want to rent to you, they could reduce fees, lower the security deposit, and potentially lower the rent for long-term leases.

3. Get a Roommate

Living with a friend or family member can help you afford the lifestyle you want. Split rent, utilities, and other housing-related costs to slash your overall monthly expenses. Choose wisely, though, finding a roommate can be tricky, and you want to choose someone reliable who respects your space and boundaries.

4. Location Over Amenities

Choose neighborhoods with good transit, walkability, and safety over luxury amenities like rooftop pools. You can always visit specific amenities (like pools) without paying premium rent.

5. Budget for Upfront Costs

Moving isn’t cheap. Save ahead of time for upfront costs, such as application fees, moving expenses, and other related fees.

6. Brush up on Your Rights

Understanding Illinois’s tenant laws may save you future headaches and give you a bargaining chip while apartment hunting.

Find an Apartment in Chicago, IL

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Is Chicago Affordable for Renters? FAQs

Is Renting Cheaper Than Buying a Home in Chicago?

In Chicago, renting tends to be more affordable than buying a home. This is the case for many high-cost-of-living cities, and is especially true for people renting on a short-term basis. Monthly mortgage costs often look better on paper, and those planning to live in Chicago long-term may save more by buying a home.

Is Chicago’s Rental Market Competitive?

Yes, Chicago’s current rental market is competitive. Don’t be surprised by rapid turnarounds on lease signings in high-demand neighborhoods. If you want to land a rental in Chicago, have your documents ready and be prepared to sign leases quickly. You can also use tools like Apartment List to get an edge on early units.

What’s a Livable Wage in Chicago?

MIT’s Living Wage Calculator states that a single adult must make $24.88 per hour or $51,752 annually to live comfortably. Costs vary for households with multiple incomes or children.

What If I Can’t Afford Rent in Chicago, IL?

If you can’t afford rent in Chicago, you’ll likely need to “think outside the box.” Find a place to live with trustworthy roommates, search for housing outside the city center, utilize match tools like Apartment List, or explore rental assistance programs.

Are utilities typically included in rent in Chicago?

No, most Chicago rentals don’t have utilities included, unless otherwise stated in the contract. Tenants are generally required to pay for water, trash, electricity, gas, internet, and sometimes pest control. Depending on the building, they may offer certain amenities or include a few of these items in the rent. It’s best to ask directly before signing a contract to know what is included.