The most affordable student-driven rental markets
The average cost of renting in the U.S. is $2,266 per month, including rent, standard utilities, and renters insurance, according to Insurify’s analysis. Although student housing demand influences the rental market, these metro areas have lower-than-average rent costs. Among the 10 most affordable student-driven rental markets, the average total cost of renting is $1,552 per month.
The three metro areas with the highest Student Market Impact scores — Ames, Iowa; Bloomington, Indiana; and Iowa City, Iowa — are among the 10 most affordable student-driven rental markets. Students may have a significant influence on rent costs in these smaller markets, indicating that housing prices may be even lower without the market pressure from student renters.
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1. Ames, Iowa
Average monthly total cost of renting per housing unit: $1,303
Student Market Impact Score: 85.4/100
Average annual renters insurance premium: $253
Largest local college or university: Iowa State University
Iowa State University is the dominant source of rental demand in Ames. College students make up 24.3% of the metro area’s population age 3 and older, according to 2024 American Community Survey data. And 39.1% of all occupied housing units are renter-occupied.
Rental costs in Ames are lower than in Iowa’s bigger cities like Iowa City and Cedar Rapids, and the state’s cost of living index is among the lowest in the country, according to the Missouri Economic Research and Information Center (MERIC).[1] Still, the city’s 2024–2025 annual report shows that increasing housing supply and creating affordable housing are municipal priorities.[2]
Ames’ renters insurance costs are a little below the national average, according to Insurify data. The metro’s theft rate is low, which could help reduce costs.
2. Brookings, South Dakota
Average monthly total cost of renting per housing unit: $1,413
Student Market Impact Score: 80.0/100
Average annual renters insurance premium: $191
Largest local college or university: South Dakota State University
Home to South Dakota State University, Brookings is a small city with a large student population. College students account for 21.9% of the population age 3 and older. It’s also a city of renters. Nearly half (42.8%) of its occupied housing units are renter-occupied, and its relatively low rental costs reflect a lower cost of living.
But Brookings has long been aware of, and working to address, the increasing need for affordable housing. In its final report in 2017, the Brookings Affordable Housing Task Force noted students’ influence on housing, especially how their tolerance for spending “a disproportionately higher amount of their income on housing while pursuing a degree” can affect the market.[3]
3. Fargo, North Dakota
Average monthly total cost of renting per housing unit: $1,423
Student Market Impact Score: 71.4/100
Average annual renters insurance premium: $205
Largest local college or university: North Dakota State University (Main Campus)
Fargo’s housing market is diverse enough that its student population has a less pronounced influence on rentals, as shown by the metro area’s 71.4 Student Market Presence Score, the lowest among the top five. Healthcare professionals and students drive demand, which sustains rental costs.
Renters make up a particularly high share of multifamily units: 85.2% of Fargo’s multifamily units are renter-occupied, the third-highest share after the Boston and New York City metro areas, according to the 2024 American Community Survey. Overall, 44.7% of all occupied housing units are renter-occupied, and renting is especially common near the university campus.[4]
Fargo’s low cost of living keeps rents relatively low, and its moderate theft and severe weather risk may contribute to its below-average renters insurance costs.
4. Laramie, Wyoming
Average monthly total cost of renting per housing unit: $1,467
Student Market Impact Score: 81.3/100
Average annual renters insurance premium: $186
Largest local college or university: University of Wyoming
Laramie is a renter- and student-dominated city. Renters inhabit 50% of all occupied housing units. Among the metro areas Insurify analyzed, Laramie has the highest share of college students, at 27.8% of the population age 3 and older, according to 2024 American Community Survey data. But the university may be taking steps to reduce student influence on the housing market. In 2025, the University of Wyoming completed its first residence hall project in nearly 60 years, adding more than 900 beds.[5]
Laramie is also one of the cheapest cities in the country for renters insurance, according to Insurify data. The county faces few climate risks that can increase the likelihood that a renter will file a claim, which may contribute to its lower premiums.
5. Grand Forks, North Dakota
Average monthly total cost of renting per housing unit: $1,477
Student Market Impact Score: 76.4/100
Average annual renters insurance premium: $191
Largest local college or university: University of North Dakota
Like Fargo, Grand Forks is a college town with a more diverse housing demand than Ames or Laramie. For example, while it’s a renter-heavy metro area, with renters in 42.7% of all occupied units, college students make up 14.1% of the population age 3 and older, according to the 2024 American Community Survey. So, while students may influence costs in university-adjacent neighborhoods, varied demand and a low cost of living keep rents down.
Further reducing housing costs, Grand Forks is among the least expensive cities for renters insurance. The comparative savings may reflect the metro area’s moderate theft rate and the county’s relatively low severe weather risk index, according to the Federal Emergency Management Agency (FEMA).
Metros in Nebraska, New Mexico, Louisiana, and Indiana also rank high for affordability
Several other college-town markets pair comparatively low rent costs with strong student housing demand.
For example, Bloomington’s affordable housing strategy mentions how a “large and growing student population affects housing costs and availability, particularly with rental prices among the highest in the state and pressures on owner-occupied housing neighborhoods.”[6] That growing student population has made it challenging to “provide a range of housing options for non-students, especially those at low and moderate income levels.”
A 2020 housing study found Bloomington would need to add 2,592 non-student housing options by 2030 to accommodate projected population growth.[7] And, for Fall 2025, Indiana University’s Bloomington campus welcomed a record number of students.[8]
| Student Market Impact Score | Total Monthly Rental Cost Per Housing Unit | Largest Local College or University |
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| Ames, IA | 85.4 | $1,303 | Iowa State University |
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| Brookings, SD | 80.0 | $1,413 | South Dakota State University |
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| Fargo, ND | 71.4 | $1,423 | North Dakota State University (Main Campus) |
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| Laramie, WY | 81.3 | $1,467 | University of Wyoming |
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| Grand Forks, ND | 76.4 | $1,477 | University of North Dakota |
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| Lincoln, NE | 78.2 | $1,620 | University of Nebraska-Lincoln |
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| Iowa City, IA | 82.1 | $1,673 | University of Iowa |
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| Las Cruces, NM | 71.5 | $1,701 | New Mexico State University (Main Campus) |
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| Baton Rouge, LA | 71.2 | $1,708 | Louisiana State University and Agricultural & Mechanical College |
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| Bloomington, IN | 83.7 | $1,731 | Indiana University - Bloomington |
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