One of the biggest financial concerns that many Americans have is how much they need to earn to be able to afford rent in their area. With rent prices rising across the country, it can be difficult to find an affordable place to live.
But just how much money do you need to make to be able to afford rent? The answer to that question varies depending on where you live in the United States. In this article, we’ll take a look at some recent studies on the hourly wage needed to afford rent in different states and cities.
The Out of Reach Study
In 2019, the National Low Income Housing Coalition released its annual Out of Reach report, which compares the average hourly wage for renters in each state to the wage needed to afford a two-bedroom apartment at fair market rent.
The data shows that there is no state in the U.S. where a full-time minimum wage worker can afford a two-bedroom rental home without spending more than 30% of their income. In fact, in some states, such as Hawaii and California, renters would need to earn more than $35 per hour to afford a two-bedroom home.
State Rankings for Hourly Wage Needed to Afford Rent
- Hawaii – $35.20
- California – $34.69
- Massachusetts – $33.81
- Washington DC – $33.58
- New Jersey – $32.79
These states have the highest hourly wage needed to afford rent, primarily due to the high cost of living and high demand for rental properties.
The National Housing Wage
In addition to the Out of Reach report, the National Low Income Housing Coalition also calculates the National Housing Wage, which is the hourly wage needed to afford a two-bedroom rental home at fair market rent across the entire country.
According to their 2019 report, the National Housing Wage is $22.96 per hour for a 40-hour workweek. This means that someone would need to earn almost $48,000 per year to afford a two-bedroom rental home without spending more than 30% of their income on rent.
As rental prices continue to rise across the country, it’s important for individuals and families to be aware of the hourly wage needed to afford rent in their area. If you’re struggling to make ends meet, consider looking for ways to increase your income or reduce your expenses, such as finding a roommate or moving to a less expensive area.
Hopefully, this article has given you a better understanding of the hourly wage needed to afford rent around the U.S. and how it varies from state to state.