Writings and observations

Affordability

The minimum wage, in theory, was set up to provide a floor income allowing anyone who worked (again, in theory) to earn enough to survive on a 40-hour per week job. At a federal rate of $5.15 an hour that has, of course, been something of a lie for quite a while now.

But the report released this week from the National Low Income Housing Coalition puts concrete numbers to what most of us assume. Natonally it notes, “more than 80% of all renter households live in jurisdictions where the minimum wage is less than half of the Housing Wage. In other words, the vast majority of renter households find themselves in localities in which decent housing is unaffordable unless their combined income exceeds that of two wage earners working full-time, with no vacation or sick days, at the minimum wage.” In other words, out of reach of even a couple both of whom work full time, at minimum wage.

And in the Northwest?

Here are the state summaries from the report:

For Idaho:

In Idaho, the Fair Market Rent (FMR) for a two-bedroom apartment is $603. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $2,011 monthly or $24,137 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $11.60.

In Idaho, a minimum wage worker earns an hourly wage of $5.15. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 90 hours per week, 52 weeks per year. Or, a household must include 2.3 minimum wage earner(s) working 40 hours per week year-round in order to make the two bedroom FMR affordable.

In Idaho, the estimated mean (average) wage for a renter is $8.61 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 54 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.3 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 Idaho. If SSI represents an individual’s sole source of income, $174 in monthly rent is affordable, while the FMR for a one-bedroom is $496.

For Oregon:

In Oregon, the Fair Market Rent (FMR) for a two-bedroom apartment is $682. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $2,275 monthly or $27,298 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $13.12.

In Oregon, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 72 hours per week, 52 weeks per year. Or, a household must include 1.8 minimum wage earner(s) working 40 hours per week year-round in order to make the two bedroom FMR affordable.

In Oregon, the estimated mean (average) wage for a renter is $11.07 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 47 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.2 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 Oregon. If SSI represents an individual’s sole source of income, $174 in monthly rent is affordable, while the FMR for a one-bedroom is $570.

In Washington:

In Washington, the Fair Market Rent (FMR) for a two-bedroom apartment is $757. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $2,522 monthly or $30,268 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $14.55.

In Washington, a minimum wage worker earns an hourly wage of $7.35. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 79 hours per week, 52 weeks per year. Or, a household must include 2.0 minimum wage earner(s) working 40 hours per week year-round in order to make the two bedroom FMR affordable.

In Washington, the estimated mean (average) wage for a renter is $12.08 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 48 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.2 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 Washington. If SSI represents an individual’s sole source of income, $174 in monthly rent is affordable, while the FMR for a one-bedroom is $617.

Share on Facebook