About the Report
For more than 35 years, NLIHC’s Out of Reach report has called attention to the disparity between wages and the cost of rental housing in the U.S. Every year the report has shown that affordable rental homes are out of reach for millions of low-wage workers, seniors, families, and other renters. The report’s central statistic, the Housing Wage, is an estimate of the hourly wage a full-time worker must earn to afford a modest rental home at HUD’s Fair Market Rent (FMR) without spending more than 30% of their income on housing costs – the most widely accepted standard of affordability. The FMR is an estimate of what a family moving today can expect to pay for a modestly priced rental home in a given area.
Housing is Out of Reach
In 2026, a full-time worker needs to earn $34.73 per hour to afford a modest two-bedroom rental home in the U.S. and $29.19 to afford a modest one-bedroom rental. The average hourly wage earned by renters is $24.84, which is $9.89 less than the national two-bedroom Housing Wage and $4.35 less than the one-bedroom Housing Wage. In 49 states, the District of Columbia and Puerto Rico, the average renter wage is not enough to afford a two-bedroom rental at FMR. In 36 states, it falls short of affording even a one-bedroom rental. Workers in the nation’s most common occupations also struggle to afford housing. Of the 25 most common jobs in the U.S., 17 pay median wages below the Housing Wage for a one-bedroom rental, and 18 pay below the Housing Wage for a two-bedroom rental. These 18 occupations employ about 74 million people, 48% of the workforce.
Many low-income renter households include seniors, people with disabilities, students, or single-adult caregivers. Because of their situations, they often cannot work or must rely on fixed incomes below the poverty level or on low- or minimum-wage jobs. In most U.S. areas, a family of four at the poverty line can afford no more than $825, and many can afford less. A full-time worker earning the federal minimum wage of $7.25 can afford only $377 per month. Individuals with disabilities relying on federal Supplemental Security Income (SSI) can afford only $298 per month. The average monthly FMRs for one-bedroom homes are $1,518 and for two-bedroom homes $1,806, far out of reach for low-income renters in most cases.
The Federal Policies Needed to End the Housing Crisis
Despite the acute affordability challenges facing the nation's renters, the current administration's policies have undermined housing stability instead of addressing it. Staff reductions at HUD have gutted institutional expertise. Fair housing regulations have been rolled back. The President's fiscal year (FY) 2027 budget request would reduce the number of households receiving assistance and restrict new voucher issuance. This leaves low-income renters with fewer protections and less support when they need it most. Congress must act and show bipartisan commitment to addressing the housing crisis by expanding rental assistance, investing in affordable housing stock, and reforming key programs.
- First, Congress must invest in solutions to expand and preserve the supply of affordable housing. This includes expanding the national Housing Trust Fund to build and preserve affordable housing and investing directly in capital repairs for public housing.
- Second, Congress should expand access to rental assistance, ideally to every eligible household in need. Universal rental assistance could be achieved by fully funding the Housing Choice Voucher program.
- Third, Congress should reform existing housing programs to ensure they work more effectively for the lowest-income renters. This includes reforming the Low-Income Housing Tax Credit (LIHTC) to drive deeper investments in affordable housing, streamlining and improving the efficiency of existing housing programs, and expanding the development of accessible housing for seniors and people with disabilities.
The public should continue to insist that Congress make substantial long-term investments in affordable housing assistance to ensure the lowest-income renters can access safe, decent, and affordable homes.