I might be overthinking it, but I believe most of us expect our employment to at least cover basic living needs.
Don’t misunderstand me: personal satisfaction, contributing to society, moving up the career ladder and saving money are all important. Still, at a minimum I’d want my paycheck to provide a place to live and meals on the table.
Sadly, many Americans working full-time at minimum wage can’t even manage that.
Minimum-wage employees across the nation are unable to afford two-bedroom rentals, according to a recent analysis from the National Low Income Housing Coalition.
What Renters Actually Need to Make
The coalition determined renters would need to earn $21.21 per hour — almost three times the federal minimum of $7.25 — to pay for a modest two-bedroom unit.
Affordability in the study was judged using fair market rent figures and the common threshold of spending no more than 30% of income on housing, though the report highlighted that more than 11.2 million households pay over half their earnings on rent, forgoing other essentials like healthcare and groceries.
Workers in Hawaii, Washington, D.C., and California face the highest requirements to afford a two-bedroom — $35.20 an hour, $33.58 an hour and $30.92 an hour, respectively.
There’s somewhat more affordability in states such as Arkansas, Kentucky and South Dakota, but even there workers would still need at least $13.72, $13.95 or $14.12 an hour, respectively — roughly double the federal minimum.
The report even noted minimum-wage employees could cover a two-bedroom if they logged 117 hours per week. That would require working almost 17 hours per day, every single day.
One-bedroom apartments aren’t much easier on a minimum wage income. Nationwide, there are just 12 counties — located in Washington, Oregon and Arizona — where a minimum-wage earner could afford a one-bedroom without exceeding 40 hours of work per week.
Ways to Manage Housing Costs on Minimum Wage
While many lower-income households turn to public assistance, these supports aren’t always available. The report stated three out of four families miss out on needed housing subsidies because of insufficient government funding.
To address this shortfall, Congressman Keith Ellison introduced legislation, the Common Sense Housing Investment Act, which would reinvest more than $241 billion to make rental housing attainable for families in need.
Absent government help, splitting housing expenses or earning extra income are practical ways to make rent manageable.
At Savinly, we frequently cover side hustles, such as:
- Driving for ride-share companies like Uber or Lyft
- Painting house numbers
- Selling handmade items on Etsy
- Donating sperm
- Giving plasma
- Working as a mystery shopper
- And other gigs
Those supplemental income streams can nudge a minimum-wage paycheck closer to that $21.21 hourly target.
Another effective strategy is sharing housing expenses with a roommate or partner — for ideas on cutting rent costs by living with others, see renting house multiple roommates cut rent half.
Jordan Hayes is a staff writer at Savinly. Early in his career he worked in food service earning $2.13 an hour plus tips. While in that role he shared a house with multiple roommates to lower housing expenses.
