10 of the Most Affordable Neighborhoods in Chicago

Chicago is a city with a wide range of neighborhoods, each offering different living experiences and costs. But it’s by no means an inexpensive place to live. According to SmartAsset’s 2024 “Salary Needed to Live Comfortably” report for 2024, Chicago ranked 61st among 99 of the largest U.S. cities in salary needed to live comfortably .

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Using the 50/30/20 budget rule to define a comfortable lifestyle, the study found the average American worker needs $96,500 in after-tax income to be able to afford short- and long-term goals while paying for essential living expenses. For families of two adults and two children, the combined average income needed is $235,000.

For Chicago, the hourly wage needed for a single adult to live in sustainable comfort was $47.38, the annual salary needed for a single adult to live comfortably was $98,550 and the combined salaries for two working adults with two children needed $241,280.

What you pay in rent depends on several factors, including location, size and quality. According to Rent.com’s Apartmentguide site , the average rent in Chicago is $2,460 per month. Using that median monthly rent, you would need to make $8,200 each month or $98,400 annually to follow the 30% rule.

Thankfully, there are many neighborhoods in Chicago that will cost you less than $2,460 in rent and areas with homes values far less than the $298,397 average for Chicago overall. Here is a list of some of the most affordable neighborhoods in the Windy City. All have average monthly rents below $1,090, per RentCafe, and the highest average home value sits just slightly above $205,000, according to data from Zillow.

Avalon Park

• Average Monthly Rent: $1,090
• Average Home Value: $162,282

Finding an affordable place to live in the Avalon Park area can be challenging, but based on the past 12 months, the median sold price for homes in the neighborhood was $200K, per Rocket Homes. However, the market is heating up in this area. Redfin considers Avalon Park as very competitive with houses selling in 12.5 days on average.

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Cottage Grove Heights

• Average Monthly Rent: $1,028
• Average Home Value: $154,753

This south side residential area is quiet and compact, with strong community ties and blocks of modest homes, making it pleasant for families of all sizes. Residents appreciate all of the benefits of owning their own house in of Cottage Grove Heights, where private homes outnumber multi-unit complexes. According to Realtor.com, the median listing home price in Cottage Grove Heights is $189,894.

Fernwood

• Average Monthly Rent: $1,028
• Average Home Value: $132,604

Fernwood, located in the community area of Roseland, has the cheapest average home value of any neighborhood on this list. While that might be an eye-catcher, you should heed caution when you’re on the hunt for a new home. Price is paramount, but the neighborhood should provide you with a sense of safety and relevant amenities. Fernwood is “known for its peaceful atmosphere and well-maintained surroundings,” notes the Nextdoor neighborhood app.

Princeton Park

• Average Monthly Rent: $1,028
• Average Home Value: $138,841

This tiny south side neighborhood has excellent transit routes to downtown and the other areas of Chicago. Single-family homes and multi-unit buildings fill neighborhood blocks, offering Chicagoans a wide range of real estate choices. Some properties are remodeled flats and condos with contemporary finishes and facilities, but the majority are older bungalows and ranches.Pullman

• Average Monthly Rent: $1,028
• Average Home Value: $167,111

This former company town was saved from demolition by bold neighborhood action in 1960 and was designated an historic district in 1969. Offering a suburban feel within the city limits, Pullman is known for its strong community, family-friendly atmosphere and affordable housing options.

Rosemoor

• Average Monthly Rent: $1,028
• Average Home Value: $168,725

Known for its cultural heritage and relatively low cost of living compared to other parts of the city, Rosemoor is ripe for revitalization. The typical home value in Rosemoor is $168,725, which is down 1.2% from last year and almost $130,000 less than that of Chicago overall.

West Pullman

• Average Monthly Rent: $1,028
• Average Home Value: $137,220

West Pullman is a tight knit community with plenty parkland, playlots and other outdoor recreation sites among its residential blocks of tree-lined yards and urban areas with tightly-packed dwellings. This older south-side neighborhood is home to the largest community center in Illinois (the Salvation Army Kroc Community Center) and the largest solar plant in the U.S. (Exelon Solar Farm), according to Habitat for Humanity.

Fifth City

• Average Monthly Rent: $1,015
• Average Home Value: $205,190

Along with Homan Square and West Garfield Park, Fifth City has the lowest monthly average rent in Chicago ($1,015), per RentCafe. Located just minutes away from Chicago’s active downtown, this sub-neighborhood “offers folks affordable homes in classic brick flats, near to major transportation systems and one of the town’s largest parks,” claims Dream Town Real estate.

Homan Square

• Average Monthly Rent: $1,015
• Average Home Value: $193,734

Homan Square, located roughly five miles west of Chicago’s city center, is a neighborhood focused on community and regeneration. New residential development has transformed Homan Square into a lively community with nearby shopping, dining, and entertainment options. This well-planned neighborhood of modern homes and apartments boasts a wide range of mixed-income housing options, with costs ranging from less than $100,000 to $850,000 for multi-family homes.

West Garfield Park

• Average Monthly Rent: $1,015
• Average Home Value: $167,392

Housing usually takes the biggest chunk of your monthly expenses, but you can catch a break if you choose to live in the West Garfield Park area in Chicago’s West Side. Often considered one of the most affordable neighborhoods in Chicago, West Garfield Park offers a mix of old and new, with a variety of housing options at lower prices.

This article originally appeared on GOBankingRates.com : 10 of the Most Affordable Neighborhoods in Chicago