THERE IS NOW ZERO U.S. STATES WHERE A FULL TIME MINIMUM WAGE JOB IS ENOUGH TO AFFORD A 2 BEDROOM APARTMENT

For over 35 years, the National Low Income Housing Coalition has published the Out of Reach report to highlight the growing gap between wages and rental costs. The findings for 2025 reveal a stark reality for millions of Americans attempting to secure stable housing. The report uses the Housing Wage as its central metric, which calculates the hourly pay needed to afford a modest rental without spending more than 30% of total income.

To afford a modest two-bedroom rental home in the United States, a full-time worker now needs to earn an hourly wage of $33.63. Even a one-bedroom rental requires a wage of $28.17 per hour. These figures stand in sharp contrast to the federal minimum wage of $7.25. In fact, there is no state or county in the country where a full-time minimum-wage worker can afford a modest two-bedroom home at Fair Market Rent.

The data shows that even the average renter is struggling in the current economy. In 2025, the average hourly wage for renters is $23.60, which falls $10.03 short of the two-bedroom Housing Wage. This gap exists across almost the entire nation, as the average renter’s wage cannot cover a two-bedroom rental in 49 states. In 37 states, that same average wage is insufficient to afford even a one-bedroom apartment.

Job titles do not guarantee affordability either, as 18 of the 25 most common occupations in the U.S. pay less than the two-bedroom Housing Wage. This group includes retail sales workers, cooks, and home health aides, representing approximately 74 million people. Together, these workers make up 48% of the entire American workforce. Many individuals in these roles must work multiple jobs just to cover basic housing costs.

The situation is even more difficult for those on fixed incomes or those facing physical challenges. An individual relying on federal Supplemental Security Income can only afford roughly $290 per month for rent. Meanwhile, the average Fair Market Rent for a one-bedroom home has reached $1,465. Families of four living at the poverty line generally cannot afford to pay more than $804 per month for their housing.

To address this systemic shortage, the report advocates for significant federal intervention and sustained investment. Key recommendations include expanding the national Housing Trust Fund and providing universal rental assistance through the Housing Choice Voucher program. Strengthening renter protections, such as providing legal counsel during evictions, is also essential for long-term stability. Advocates suggest these steps are necessary to ensure the lowest-income renters can access safe and affordable homes.

Source: https://nlihc.org/oor/about