The Lone Star State tops the list of most affordable places to live based on renter income and median asking rent.

Renters need less income to afford the median asking rent in the U.S. According to a new report from Redfin, renter households need to have an income of $63,680 to afford the median monthly asking rent of $1,592, or 30% of the household's income, which is the factor the report uses to determine affordability.

The income needed is the lowest since March 2022 and 0.4% below last year. Median asking rent was at a record high of $1,700 in August 2022, when spending 30% of the household income meant earning $68,000 per year.

Renters are earning more now than prior to the pandemic. Median income is now at $54,752 for renters, up more than 5% from 2023 and 35% in 2019, when incomes were about $14,000 less per year.

"Rental affordability will continue improving this year, as wages grow and rents remain flat, thanks to the recent boom in apartment construction," said Redfin Senior Economist Sheharyar Bokhari, in a release. "The affordability gap between renting and buying is likely to widen further in 2025, as home prices rise and mortgage rates remain high."

Austin, Texas, was the most affordable metro for renters with a 25% difference between median income and median asking rent. Houston and Dallas were second and third at more than 17% and 10%, respectively.