NLIHC’s annual report, Out of Reach, documents the gap between wages and the price of housing across the United States. The report’s Housing Wage is an estimate of the hourly wage that a full-time worker must earn to afford a modest and safe rental home without spending more than 30% of his or her income on rent and utility costs. This year’s findings highlight the struggle faced by millions of families in affording a safe and decent home. Wage stagnation, particularly among lower wage workers, rising rents, and an inadequate supply of affordable housing continue to present significant challenges.
In 2016, the national Housing Wage is $20.30 for a two-bedroom rental unit and $16.35 for a one-bedroom rental unit. A worker earning the federal minimum wage of $7.25 per hour would need to work 2.8 full time jobs, or approximately 112 hours per week for all 52 weeks of the year, in order to afford a two-bedroom apartment at HUD’s Fair Market Rent (FMR). If this worker slept for eight hours per night, he or she would have no remaining time during the week for anything other than working and sleeping.