Unaffordable housing

From The Slatin Report:

The National Low-Income Housing Coalition produces an index, published in Out of Reach, that calculates "the hourly wage that someone must earn - working 40 hours a week, 52 weeks a year - to be able to afford rent and utilities in the private local housing market in every state, metropolitan area and county in the country."

The dollar figure the NLIHC came up with, which they call the housing wage, is $15.78 an hour, up from $15.37 an hour in 2004 and $15.21 in 2003. NLIHC lays the blame "for much of the increase in renter housing costs" on what it says was a 13%-plus rise in housing-related fuel and utitily costs last year.

For the first time, NLIHC’s data shows that a full-time worker at minimum wage cannot afford a one-bedroom apartment anywhere in the U.S. The report notes that a family with two full-time workers earning federal minimum wage would make just $21,424, significantly less than the $32,822 annually they would need to afford a modest two-bedroom apartment. According to the report, 81% of American family renters live in counties where a two full-time minimum-wage workers will be unable to afford a two-bedroom apartment.

Not surprisingly, the most expensive city in the nation for renters: San Francisco. The highest-cost state: Hawaii. California, Massachusetts, New Jersey and New York round out the top five states. To see the full list of state rankings, click here. Click here for a list of the least affordable jurisdictions.

District of Columbia results

In District of Columbia, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,225. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $4,083 monthly or $49,000 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $23.56.

In District of Columbia, a minimum wage worker earns an hourly wage of $6.60. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 143 hours per week, 52 weeks per year. Or, a household must include 3.6 minimum wage earner(s) working 40 hours per week year-round in order to make the two bedroom FMR affordable.

In District of Columbia, the estimated mean (average) wage for a renter is $20.61 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 46 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.1 worker(s) earning the mean renter wage in order to make the two-bedroom FMR affordable.


Monthly Supplemental Security Income (SSI) payments for an individual are $579 in District of Columbia. If SSI represents an individual's sole source of income, $174 in monthly rent is affordable, while the FMR for a one-bedroom is $1,080.In District of Columbia, a worker earning the Minimum Wage ($6.60 per hour) must work N/A hours per week in order to afford a two-bedroom unit at the area's Fair Market rent.

The Housing Wage in District of Columbia is $23.56/hour. This is the amount a full time (40 hours per week) worker must earn per hour in order to afford a two-bedroom unit at the area's Fair Market rent.

Index Keywords: housing