American renter households are burdened by their rent, which means they could be spending more than 30% of their annual income to cover housing costs.
As of November, the median rent in the US is $2,050, which equates to $24,600 a year. That is according to a report from Zillow. The rent could still increase or decrease depending on the location.
In comparison, the median wage of full-time workers in the third quarter is $1,165, which equates to $60,580 annually. This means workers earning the median wage would spend about 40.6% of their annual income to cover median rent.
Despite the national housing affordability crisis, there are still cities where minimum wage earners can afford rent, per a study conducted by real estate consultancy Clever. The study used a minimum wage of $7.25 per hour unless there was a higher local minimum wage in place. The rental prices were also based on data from the US Department of Housing and Urban Development's Fair Market Rent (FMR).
10 Most Affordable Cities for Minimum Wage Workers in the US
It was noted that no city in the US met the 30% threshold, which means none were affordable for minimum-wage workers. However, here is a list of cities where employees making the minimum wage spend the smallest share of their income.
Buffalo
Minimum Hourly Wage: $15.00
Typical Rent: $1,001
Percent of Income Spent on Rent: 39%
St. Louis
Minimum Hourly Wage: $12.30
Typical Rent: $984
Percent of Income Spent on Rent: 46%
Hartford, CT
Minimum Hourly Wage: $15.69
Typical Rent: $1,306
Percent of Income Spent on Rent: 48%
READ ALSO: Renter Households Grew Three Times Faster Than Homeowners Amid Rising Homebuying Costs
Minneapolis
Minimum Hourly Wage: $15.57
Typical Rent: $1,381
Percent of Income Spent on Rent: 51%
Providence, RI
Minimum Hourly Wage: $14.00
Typical Rent: $1,319
Percent of Income Spent on Rent: 54%
Cincinnati
Minimum Hourly Wage: $10.45
Typical Rent: $993
Percent of Income Spent on Rent: 55%
Cleveland
Minimum Hourly Wage: $10.45
Typical Rent: $995
Percent of Income Spent on Rent: 55%
Kansas City, MO
Minimum Hourly Wage: $12.30
Typical Rent: $1,183
Percent of Income Spent on Rent: 55%
Denver
Minimum Hourly Wage: $18.29
Typical Rent: $1,789
Percent of Income Spent on Rent: 56%
Detroit
Minimum Hourly Wage: $10.33
Typical Rent: $1,090
Percent of Income Spent on Rent: 61%
RELATED ARTICLE: First-Time US Homebuyers Are Now Older Than Ever as Houses Become 'Wildly Unaffordable'
