In the United States, many states have minimum wage laws that require employers to pay their employees a certain amount for work. However, when the cost of living in these states is taken into account, it’s hard for people to make rent on minimum wage.

The the hourly income you need to afford rent around the u.s. 2021 is a map that shows states where it’s hardest to make rent on minimum wage.

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Minimum wage arguments aren’t new, but they’re gaining traction as businesses struggle to fill low-paid positions and extended federal unemployment benefits expire. Proponents of a higher minimum wage say that existing federal and state minimum wage regulations do not offer enough money for employees to afford basic needs such as housing.

The proponents are correct, as LendingTree analysts discovered that median homeowner and rent expenses are out of reach for minimum wage employees in all 50 states – and have been since at least 2000.

LendingTree looked examined data from the US Department of Labor and the US Census Bureau to see whether buying or renting a house is reasonable for someone working a full-time minimum wage job. LendingTree estimated how much a person working 40 hours a week for 52 weeks a year at an hourly salary equal to their state’s minimum wage could afford in monthly housing expenses assuming they could spend up to 30% of their gross monthly income on housing. The median monthly homeowner expenses for houses with a mortgage and the median monthly gross rent payment in each state were then compared.

Gerasimov174 / istockphoto / Gerasimov174 / istockphoto / Gerasimov174 / istockphoto /

Methodology

States where it's hardest to make rent on minimum wage

Researchers from LendingTree looked at data from all 50 states to see whether the monthly cost of buying or renting a house was reasonable for a minimum-wage worker.

The 2019 American Community Survey — the most recent year available — as well as the 2010 American Community Survey and the 2000 decennial census, were used to calculate median monthly housing expenses for homeowners with a mortgage and median monthly gross rent prices.

Total earnings for individuals earning minimum wage were computed using data from the US Department of Labor and the FRED (Federal Reserve Economic Data) database, assuming employees in a particular state worked 40 hours a week for 52 weeks a year and were paid their state’s minimum wage. The federal minimum wage was utilized instead in states that did not have a state-level minimum wage.

ablokhin / istockphoto / ablokhin / istockphoto / ablokhin / istockphoto /

24. Idaho

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • The average gross rent is $880. 
  • $377 per month is a reasonable cost. 
  • ($503) is the difference between gross rent and a monthly payment that is affordable.

knowlesgallery is the source of this image.

Tennessee is number 23 on the list.

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • The average gross rent is $904 per month. 
  • $377 per month is a reasonable cost. 
  • ($527) is the difference between gross rent and a monthly payment that is affordable.

DenisTangneyJr., DenisTangneyJr., DenisTangneyJr., Denis

Oregon is number 22.

States where it's hardest to make rent on minimum wage

  • Minimum pay is $12.75 per hour. 
  • Monthly full-time minimum-wage wages calculated: $2,210 
  • $1,185 is the median gross rent. 
  • $663 is an affordable monthly payment. 
  • ($522) is the difference between gross rent and a monthly payment that is affordable.

HaizhanZheng is the author of this image.

South Carolina is number twenty-one.

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • The average gross rent is $922. 
  • $377 per month is a reasonable cost. 
  • ($545) difference between total rent and a manageable monthly payment

SeanPavonePhoto contributed to this image.

North Carolina is number twenty-first.

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • The average gross rent is $931. 
  • $377 per month is a reasonable cost. 
  • ($554) is the difference between gross rent and a monthly payment that is affordable.

“Darwin Brandis” is the source of this image.

Connecticut (number 19)

States where it's hardest to make rent on minimum wage

  • Minimum pay is $12 per hour. 
  • Monthly full-time minimum-wage wages calculated: $2,080 
  • $1,177 is the median gross rent. 
  • $624 is an affordable monthly payment. 
  • ($553) is the difference between gross rent and a monthly payment that is affordable.

traveler1116 is the photographer behind this image.

Pennsylvania is number eighteen.

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • The average gross rent is $951. 
  • $377 per month is a reasonable cost. 
  • ($574) is the difference between gross rent and a monthly payment that is affordable.

AppalachianViews is the source of this image.

Delaware is number seventeen.

States where it's hardest to make rent on minimum wage

  • Minimum wage is $9.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,603 
  • $1,116 is the median gross rent. 
  • $481 is an affordable monthly payment. 
  • ($635) is the difference between gross rent and a monthly payment that is affordable.

mdgmorris is the author of this image.

Washington, D.C.

States where it's hardest to make rent on minimum wage

  • $13.69 per hour is the minimum wage. 
  • Monthly full-time minimum-wage wages calculated: $2,373 
  • The median gross rent is $1,359 per month. 
  • $712 is an affordable monthly payment. 
  • ($647) is the difference between gross rent and a monthly payment that is affordable.

4nadia is the author of this image.

Nevada is number 15 on the list.

States where it's hardest to make rent on minimum wage

  • Minimum pay is $9.75 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,690 
  • $1,168 is the median gross rent. 
  • $507 per month is a reasonable cost. 
  • ($661) is the difference between gross rent and a monthly payment that is affordable.

AlizadaStudios provided the image.

Massachusetts is number 14 on the list.

States where it's hardest to make rent on minimum wage

  • $13.50 is the minimum pay. 
  • Monthly full-time minimum-wage wages calculated: $2,340 
  • $1,360 is the median gross rent. 
  • $702 is an affordable monthly payment. 
  • ($658) is the difference between gross rent and a monthly payment that is affordable.

Rolf 52 is the author of this image.

New York is number thirteen.

States where it's hardest to make rent on minimum wage

  • Minimum pay is $12.50 per hour. 
  • Monthly full-time minimum-wage wages calculated: $2,167 
  • The median gross rent is $1,309 per month. 
  • $650 is an affordable monthly payment. 
  • ($659) is the difference between the gross rent and the feasible monthly payment.

Boogich is the author of this image.

Alaska is number twelve.

States where it's hardest to make rent on minimum wage

  • $10.34 per hour is the minimum wage. 
  • Monthly full-time minimum-wage wages calculated: $1,792 
  • $1,201 is the median gross rent. 
  • $538 per month is a reasonable cost. 
  • ($663) is the difference between gross rent and a monthly payment that is affordable.

Chilkoot is the author of this image.

Georgia is number eleven.

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • The median gross rent is $1,049 per month. 
  • $377 per month is a reasonable cost. 
  • ($672) is the difference between gross rent and a monthly payment that is affordable.

SeanPavonePhoto contributed to this image.

10. Texas

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • $1,091 is the median gross rent. 
  • $377 per month is a reasonable cost. 
  • ($714) is the difference between gross rent and a monthly payment that is affordable.

DenisTangneyJr., DenisTangneyJr., DenisTangneyJr., Denis

9. Utah

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • $1,098 is the median gross rent. 
  • $377 per month is a reasonable cost. 
  • ($721) is the difference between gross rent and a monthly payment that is affordable.

“4kodiak” is the source of this image.

Colorado is ranked number eight.

States where it's hardest to make rent on minimum wage

  • $12.32 per hour is the minimum wage. 
  • Monthly full-time minimum-wage wages calculated: $2,135 
  • The median gross rent is $1,369 per month. 
  • $641 is an affordable monthly payment. 
  • ($728) is the difference between gross rent and a monthly payment that is affordable.

Jacob Boomsma / istockphoto contributed to this image.

New Jersey is ranked number seven.

States where it's hardest to make rent on minimum wage

  • Minimum pay is $12 per hour. 
  • Monthly full-time minimum-wage wages calculated: $2,080 
  • $1,376 is the median gross rent. 
  • $624 is an affordable monthly payment. 
  • ($752) is the difference between the gross rent and the affordable monthly payment.

aimintang is the creator of this image.

Virginia is number six.

States where it's hardest to make rent on minimum wage

  • Minimum pay is $9.50 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,647 
  • $1,254 is the median gross rent. 
  • $494 per month is an affordable monthly payment. 
  • ($760) is the difference between gross rent and a monthly payment that is affordable.

DenisTangneyJr., DenisTangneyJr., DenisTangneyJr., Denis

5. The state of New Hampshire

States where it's hardest to make rent on minimum wage

  • Minimum wage is $7.25 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,257 
  • $1,147 is the median gross rent. 
  • $377 per month is a reasonable cost. 
  • ($770) is the difference between gross rent and a monthly payment that is affordable.

DenisTangneyJr., DenisTangneyJr., DenisTangneyJr., Denis

4. The state of Florida

States where it's hardest to make rent on minimum wage

  • Minimum wage is $8.65 per hour. 
  • Monthly full-time minimum-wage wages calculated: $1,499 
  • $1,238 is the median gross rent. 
  • Affordably priced monthly installments: $450 
  • ($788) is the difference between the gross rent and the feasible monthly payment.

Elisa.rolle is the photographer behind this image.

3. The state of Maryland

States where it's hardest to make rent on minimum wage

  • $11.75 per hour is the minimum wage. 
  • Monthly full-time minimum-wage wages calculated: $2,037 
  • $1,401 is the median gross rent. 
  • $611 is an affordable monthly payment. 
  • ($790) is the difference between the gross rent and the affordable monthly payment.

James Lane is the author of this image.

2. The state of California

States where it's hardest to make rent on minimum wage

  • $13 per hour is the minimum wage. 
  • Monthly full-time minimum-wage wages calculated: $2,253 
  • The median gross rent is $1,614 per month. 
  • $676 is an affordable monthly payment. 
  • ($938) is the difference between the gross rent and the feasible monthly payment.

mlauffen is the author of this image.

1. Hawaii

States where it's hardest to make rent on minimum wage

  • $10.10 is the minimum wage. 
  • Monthly full-time minimum-wage wages calculated: $1,751 
  • $1,651 is the median gross rent. 
  • $525 per month is a reasonable cost. 
  • ($1,126) is the difference between gross rent and a monthly payment that is affordable.

Art Wager is responsible for this image.

Would a $15-an-hour minimum wage make a difference?

States where it's hardest to make rent on minimum wage

Some, including President Joe Biden, have proposed increasing the federal minimum wage to $15 an hour to alleviate some of the financial strain imposed on people earning minimum wage.

If this happens, most of the country’s median-priced homes would remain expensive for minimum-wage employees. A full-time worker, for example, might afford to spend $780 per month on housing if the minimum wage was raised to $15 per hour. Only five states – West Virginia, Arkansas, South Dakota, Kentucky, and Mississippi — would be able to pay the state’s median monthly gross rent with this amount.

However, even if employees were forced to work longer hours, housing would still be considerably more accessible than it is today if the minimum wage were increased. As a consequence, although a $15-an-hour minimum wage would help to alleviate the present national housing affordability crisis, it would still make it difficult for minimum-wage employees in most states to obtain affordable housing. This is particularly relevant in light of how much house and rent prices have increased as a result of the coronavirus outbreak.

Roman Dragunov / istockphoto contributed to this image.

4 suggestions for lowering housing costs

States where it's hardest to make rent on minimum wage

Even though finding a place to live is difficult and requires some creative problem-solving abilities, it is feasible to locate a place to live on minimum pay. Here are four suggestions for doing so:

  1. Consider living with family or roommates: Both owning and renting may be made considerably more reasonable by sharing housing expenses with others. In Arizona, for example, two full-time minimum wage employees might afford to spend more than $1,200 a month on housing if their incomes were pooled. That’s more than enough to cover the state’s median gross rent. Having two salaries may make it easier to finance a mortgage, in addition to making renting more reasonable.
  2. Because many companies are having trouble filling vacant jobs, you may be able to negotiate a better salary than what you were originally given or what you’re presently earning. As a consequence, even if you work in a minimum-wage job and don’t think you have much negotiating leverage, asking for a raise may pay off – literally.
  3. Look for low-income housing: On both the federal and state levels, there are a variety of programs intended to assist low-income individuals in finding homes. The US Department of Housing and Urban Development, for example, may help qualified families that are unable to locate an affordable rental property. There are also a number of low-income home financing programs available to make the process of purchasing a property simpler.
  4. Pay off your debt: Even if you don’t make a lot of money, having less debt each month may help you save money for housing.

Related:

This story was syndicated by MediaFeed.org and originally published on LendingTree.com.

istockphoto/AntonioGuillem is the source of this image.

AlertMe

i have a job but can’t afford rent is a problem that many people face. States where it’s hardest to make rent on minimum wage include California, New York, and Maryland.

Frequently Asked Questions

Can I afford rent on minimum wage?

On minimum wage, you can afford a small studio apartment in most major cities.

Does minimum wage cover rent anywhere in the US?

In the United States, minimum wage does not cover rent. In order to be able to afford a place to live, you would have to find a job that pays at least $15 an hour.

Does minimum wage affect homelessness?

Minimum wage is a measure of the lowest amount an employer can pay an employee. It is not related to homelessness at all.

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