
Making the Rent on Minimum Wage
In no state can a minimum wage worker afford a two bedroom unit at Fair Market Rent, working a standard 40-hour work week.
The federal minimum wage is $7.25 per hour, but that figure varies depending on where you live. Earlier this year*, the National Low Income Housing Coalition (NLIHC) released their annual housing report documenting the disparity between what minimum wage workers can afford to pay for rent and how much rent costs. While it’s not surprising that these workers have trouble paying their rent, it is shocking to see just how big the gap is in many states. For example, in Hawaii, the most expensive state, a person needs to make $31.68 an hour to afford a two-bedroom apartment. (An apartment is considered affordable if rent and utilities cost under 30 percent of a person’s income.) For someone making minimum wage, that would mean working 175 hours — which isn’t even possible (since there are only 168 hours in a week). The disparity exists for every state and commonwealth with the shortest work week in Puerto Rico, where you would still need to work 55 hours to make the rent.
Since 2008, the affordability of housing has steadily eroded for working households in 24 states. Nearly one in four working households spends more than half its income on housing costs, according to a report from the Center for Housing Policy.
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