WASHINGTON, D.C. (NEWS10) – The National Low Income Housing Coalition released its annual report on wages and the cost of rental housing.
According to the Out of Reach report, no one earning the federal minimum wage or any state minimum wage can comfortably afford a two-bedroom rental home at fair market rent working a 40 hour work week.
The report found that in order to afford a modest two-bedroom rental home, renters need to earn a wage of $22.10 per hour. That’s $14.85 higher than the federal minimum wage of $7.25 and $5.22 higher than the estimated average hourly wage of $16.88 earned by renters nationwide.
“The demand for rental housing grew significantly during the past decade as a result of demographic shifts and the effects of the Great Recession.”
Hoover over each state to see how much you would need to earn to afford a modest apartment.
Financial experts advise individuals should not spend more than 30 percent of his or her income on housing costs.