This Is the Hourly Income You Need to Afford Rent in America | 22 Words

A detailed report has recently revealed the hourly income one has to make in order to afford rent in their state.

The "Out of Reach 2020" report was conducted by the National Low Income Housing Coalition and found that full-time minimum wage workers cannot afford rent in a standard 2-bedroom home without spending more than the recommended amount.

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The group urges workers to only spend thirty percent of their overall monthly income on rent, but it seems as though the latest statistics prove that a lot of Americans stuck on minimum wage cannot afford to abide by that number.

The results show the hourly wage needed to afford a 2-bedroom and it's more than double the federal minimum wage of $7.25 per hour in every state except for 1 (and Puerto Rico).

Out of Reach 2020 / National Low Income Housing Coalition

Hawaii has the highest rate, with workers needing an average of $38.76 an hour in order to afford rent, closely followed by California at $36.96, with both states' minimum wage rates set around 10 to thirteen dollars.

On the other end of the spectrum sits Arkansas, where full-time workers only need $14.19 and their hourly minimum rate is also around the 10 dollar mark, proving it to be more affordable than any other state in the country. It is closely followed by its neighboring state, Mississippi at $14.89.

At rates like this, the average American worker would need to complete forty hours every week for fifty-two weeks every year just to cover rent.

Out of Reach 2020 / National Low Income Housing Coalition

And the saddest part of it all is that even if you had a partner earning the minimum wage living in the same household, it would not be any better as most people would still struggle trying to cover their rent payments.

The authors of the report identified 2 major factors that have contributed to this dreadful housing outcome: Poor political decisions and COVID-19.

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While the latter is to be expected, the former can be controlled.

NLIHC President and CEO Diane Yentel said this in an early press release: "Housing is a basic human need, but millions of people in America cannot afford a safe, stable home."

She continued:

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"The harm of this enduring challenge is laid bare during the COVID-19 pandemic, when millions of people in America risk losing their homes. The lack of affordable homes for the lowest-income people is one of our country's most urgent and solvable challenges, during and after COVID-19; we lack only the political will to fund the solutions at the scale necessary. It's time for Congress to act."

You can read the full report here.