Best Affordable Neighborhoods in Albany, NY

Some of the cheapest neighborhoods in Albany are Sheridan Hollow, Normanskill/Kenwood, and Campus Area. These neighborhoods offer some of the lowest rent prices in Albany, making them ideal for renters on a budget. As of May 6, 2026, the average rent in Albany is $1,564, which is 2.4% higher than last year. However, it's important to remember that rental prices can vary significantly based on factors such as location, amenities, and floor plans.

Sheridan Hollow

Average Rent

$1,412/Month

Year-Over-Year Rent Change

3.1%

Units Available

15 Rentals

Sheridan Hollow is a centrally located neighborhood just north of Downtown Albany. Historic townhomes and duplexes are a staple of Sheridan Hollow, giving the neighborhood the signature New York feel.

Normanskill/Kenwood

Average Rent

$1,430/Month

Year-Over-Year Rent Change

1.6%

Units Available

11 Rentals

Normanskill/Kenwood is a scenic neighborhood surrounded by greenery. Residents enjoy access to parks, hiking trails, and the Normans Kill Creek. Easy access to Downtown Albany makes this area perfect for nature lovers seeking a suburban living with city conveniences.

Campus Area

Average Rent

$1,500/Month

Year-Over-Year Rent Change

5.1%

Units Available

41 Rentals

Campus Area is a top choice for budget-conscious renters for a variety of reasons. The average rent in Campus Area is $1,500 while the city average is $1,564. This is a 5.1% difference from last year. Residents enjoy convenient access to Elm Avenue Park, Hudson River Valley National Heritage Area, and New York State Museum.

Central Avenue

Average Rent

$1,538/Month

Year-Over-Year Rent Change

1.4%

Units Available

13 Rentals

Central Avenue is a bustling neighborhood next door to Washington Park offering shopping, dining, and public transportation. Renters will appreciate the variety of housing options and historic charm.

Pine Hills

Average Rent

$1,543/Month

Year-Over-Year Rent Change

5.1%

Units Available

14 Rentals

Pine Hills is known for its historic homes and walkability. Residents enjoy living in a suburban, picket fence dream near Washington Park and Downtown Albany.

Arbor Hill

Average Rent

$1,576/Month

Year-Over-Year Rent Change

0.8%

Units Available

41 Rentals

When you’re looking for a great Albany neighborhood on a budget, check out Arbor Hill. The average rent is $1,576, compared to the city average of $1,564. Rent prices have increased by 0.8%. Arbor Hill is convenient to Albany International, Children's Museum of Science & Technology, and SUNY Albany, Downtown Campus.

Capitol Hill

Average Rent

$1,586/Month

Year-Over-Year Rent Change

4.1%

Units Available

14 Rentals

Capitol Hill is an affordable neighborhood in Albany with an average rent price of $1,586. Compare this to the city average of $1,564. In the past year, rent prices have decreased by 4.1%. Capitol Hill provides easy access to Delaware Plaza, SUNY Albany, Downtown Campus, and City Square Plaza.

Center Square

Average Rent

$1,632/Month

Year-Over-Year Rent Change

2.9%

Units Available

14 Rentals

Center Square is a historic neighborhood known for its charming brownstones and proximity to Washington Park. Events at The Egg and Empire State Plaza and exhibits at the New York State Museum ensure there's always something to do.

Downtown Albany Historic District

Average Rent

$1,667/Month

Year-Over-Year Rent Change

1.4%

Units Available

48 Rentals

The Downtown Albany Historic District is a bustling area filled with art, history, and nightlife. Catch a show at the MVP Arena or an art exhibit at the Albany Center Gallery. The neighborhood's walkability and vintage architecture make it a city landmark.

Washington Park

Average Rent

$1,703/Month

Year-Over-Year Rent Change

1.1%

Units Available

15 Rentals

Washington Park is a popular neighborhood centered around its namesake, the iconic Washington Park. Renters will enjoy the proximity to local shops and restaurants, as well as community events at Washington Park.

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Methodology

Transit Score measures access to public transit. Scores range from 0 (minimal transit) to 100 (rider’s paradise). Learn more about the Transit Score methodology. Rental data is sourced from CoStar Group’s Market Trend reports. As a leading authority in commercial real estate information, analytics, and news, CoStar performs in-depth research to build and sustain an extensive database of commercial real estate insights.

We've combined this data with public records to provide the most current rental information available.