Sign Up For Novogradac Industry Alert Emails

Report: Minimum-Wage Worker Can’t Afford Market-Rate Home in 99 Percent of Counties

Tuesday, June 18, 2019 - 3:15PM

The National Low-Income Housing Coalition (NLIHC) released its 2019 Out of Reach Report today, concluding that in 99 percent of American counties, a full-time, minimum-wage worker can’t afford a one-bedroom rental home at fair market rent. The report also concludes that a full-time worker needs to near an average hourly wage of $22.96 to afford a modest, two-bedroom rental home–which is $15.71 higher than the federal minimum wage and $5.39 higher than the national average hourly wage earned by renters. In the report, NLIHC suggests changes to the tax code to help address the problem, including an income-targeted renters’ tax credit based on the difference between 30 percent of renters’ household incomes and their actual housing costs up to a modest price, and expanding the low-income housing tax credit by providing a 50 percent basis boost in tax credits for developments that set aside at least 20 percent of their housing for extremely low-income renters.

Learn more about Novogradac's expertise and many services