View
4
Download
0
Category
Preview:
Citation preview
Out of ReachMinnesota 2017
The growing gap between
WAGES AND RENT
An annual report from
2 www.mhponline.org
Executive Summary
When families pay too much for rent, they’re forced to sacrifice to make ends meet — cutting back at the grocery store or delaying a trip to the doctor. Building on the annual report produced by the National Low Income Housing Coalition, Out of Reach Minnesota 2017 delves further into state, county and local trends to reveal that households in every corner of Minnesota are spending thousands of dollars more than they can afford each year just to pay the rent for a modest apartment.
Key findings in MHP's 2017 report include:
From 2016 to 2017, the amount a renter household needs to earn to afford a modest apartmeny (the state "housing wage") increased by 5 percent — a higher rate of change compared to the 3 percent increase from 2015 to 2016.
Minnesota has climbed to #21 on the list of most expensive states in the nation, up from #24 just five years ago, rising above states like Texas and Arizona.
To afford a two-bedroom apartment, the median-income* renter in Minnesota would need a 13 percent raise.
A full-time minimum wage earner can’t afford even a one-bedroom apartment in any of Minnesota’s 87 counties.
The lowest income households — those earning 30 percent or less of area median income — can afford a modest one-bedroom apartment in only four of Minnesota’s 87 counties. Even efficiencies are not affordable in 35 counties.
When rent is out of reach for those who are fully employed, our communities pay the price. We cannot afford to let housing costs continue to climb, while wages remain stagnant.
Fair Market Rent: The federal government standard for a “fairly” priced apartment. It is calculated as the 40th percentile of gross rents for typical, non-substandard rental units in a local housing market. In this report, we use the term “modest” one- or two-bedroom apartments to denote fair market rent.
Housing Wage: The hourly wage workers need to earn to afford rent without spending 30 percent or more of their income.
Affordability: Any household that spends more than 30 percent of their income on housing will likely have to sacrifice on daily necessities, like food and medicine.
KEY TERMS IN THIS REPORT
30
OVERALL WAGES
Rent
* A note on average vs median income: Average income calculations reflect the entire range of incomes within a certain area, which can skew these calculations toward outliers. Median income calculations reflect the middle-point of a range of incomes for a certain area, and are less likely to be skewed by outliers. Because there is significant income variation in most communities, with clusters of extremely high- and low-income households at either end of the spectrum, median income calculations represent a more conservative estimate of a typical household's income. In this report, average renter wage comes average weekly wages from the 2015 quarterly census of employment and wages — and is adjusted by the national ratio of renter household income to total household income. Median renter wages are derived from ACS data and adjusted to 2017 dollars.
3www.mhponline.org
Nearly 30 percent of Minnesota residents — more than 600,000 households — live in a rental unit.
From 2000 to 2015, the state gained nearly 120,000 renter households, and the percentage of Minnesotans that are renters rose by 11 percent — so the high cost of rental housing affects a growing number of Minnesotans throughout the state.
Minnesota ranks #21 in the nation for the highest wages required to afford a modest two-bedroom apartment.
The wage required to afford a modest two- bedroom apartment in Minnesota is more expensive than 29 other states — including $2.50 higher than Wisconsin, and $4 higher than Iowa. Since 2012, MN has climbed from #24 to #21 on the list of most expensive states.
While households’ earnings have remained stagnant or declined, the housing wage has risen sharply.
Adjusting for inflation, Minnesota's housing wage — the wage necessary to afford a two-bedroom apartment — has jumped by nearly 18 percent over the past decade alone. Meanwhile, as housing costs have climbed, median renter income declined 11 percent from 2000 to 2015.
Rise in the housing wage since 2007
18 percent11 percent increase in renters since 2000
Minnesota renter households don’t earn nearly enough to pay the rent — and make ends meet.
The average wage ($14.28) for a renter in Minnesota isn’t enough to afford a modest two-bedroom apartment in any Minnesota county, and enough to afford a one-bedroom apartment in only 26 Minnesota counties (less than one-third of all counties). On average, a Minnesota renter has to pay $2,700 more than they can afford each year for a modest two-bedroom apartment.
For those earning minimum wage ($9.50), even a one-bedroom apartment is out of reach in all Minnesota counties. To be able to afford a one bedroom apartment, a minimum wage worker must work 62 hour per week; to afford a two-bedroom apartment he or she must work 78 hours per week.
WAGES can’t cover RENT
U.S.MN
$18.60$21.21
$16.36
ND WIIA SD
$16.11$14.57 $14.12
4 www.mhponline.org
2-BR RENT: $967
Affordable to RENTER AVERAGE INCOME Affordable
to 30 PERCENT of STATE MEDIAN
Affordable to full-time MINIMUM
WAGE EARNER
Affordable to SSI
RECIPIENT
$856
Affordable to full-time
RENTER MEDIAN INCOME
1-BR RENT: $763
$611
$742
$494
$245
WHAT RENTERS CAN AFFORD Many renter households don't earn enough to afford the cost of rent
$722 / mo$8,664/ yr
Cost beyond what household can afford for a 1 BEDROOMCost beyond what household can afford for a 2 BEDROOM
WHAT RENTERS HAVE TO PAYRenters must pay hundreds of dollars more per month and thousands more per year than they can afford on rent.
$518 / mo$6,216 / yr
$473 / mo$5,676 / yr
$269 / mo$3,288 / yr
$356 / mo$4,272 / yr
$152 / mo$1,824 / yr
$225 / mo$2,700 / yr
$21 / mo$252 / yr
$111 / mo$1,332 / yr
THE COST OF RENT, WHAT RENTERS CAN AFFORD, AND HOW MUCH THEY SACRIFICE TO MAKE ENDS MEET
5www.mhponline.org
62 HOURS for 1 bedroom
78 HOURS for 2 bedroom
Hours per week at minimum wage employee must work
Annual income of MN top jobs1 compared to income necessary to afford rent
Registered nurse
Personal care aid
Retail sales
Cashier Food prep& serving
2 bedroom: $38,700
1 bedroom: $30,505
$72,700
$23,400 $21,400 $19,600 $18,900
Minimum wage earners — and most employees in Minnesota’s most in-demand jobs — don’t earn enough to afford rent.
$15 / hour
$9.50 / hour
150
120
90
60
30
36
5744
7056
8879
125
Hours of work per week required to afford rent at minimum wage
Studio 1 BR 2 BR 3 BR
MINNEAPOLIS / ST. PAUL SPOTLIGHT
Campaigns across the nation, including Minneapolis, are pushing for a raise in the minimum wage to $15 per hour. Here’s how many fewer hours per week a minimum wage worker would need to labor to afford rent in the Minneapolis / St. Paul metro area if minimum wage were $15 per hour rather than the current $9.50 per hour.
1 jobs with the highest projected growth from 2014 to 2024 Source: MN Dept of Employment and Economic Development
6 www.mhponline.org
Zip: 55406$20.00
Zip: 55106$18.65
Zip: 55407$20.00
Zip: 55119$19.42
Zip: 55414$20.00
Zip: 55104$18.46
Zip: 55108 $20.00
Zip: 55417$20.19
Zip: 55116$19.42
Zip: 55418$20.58
Zip: 55117$18.85
Zip: 55419$22.31
Zip: 55107$19.23
Zip: 55411$23.08
Zip: 55413$21.54
Zip: 55105$19.62
Zip: 55412$21.92
Zip: 55102$18.46
Zip: 55101$22.88
55405$18.85
Zip: 55408$18.85
Zip: 5510317.12
55410$23.85
Zip: 55409$21.92
Zip: 55404$17.31
Zip: 55114$22.50
Zip: 55430$20.96
Zip: 55403$18.46
55416$23.08
55401$30.19
55415$14.81
55455$21.35
55454$17.12
55402$25.96
Housing Wage for a two bedroom apartment by zip code Hourly Wage Needed$14.81 - $17.88
$17.89 - $20.58
$20.59 - $24.42
$24.43 - $30.19
Zip: 55406$20.00
Zip: 55106$18.65
Zip: 55407$20.00
Zip: 55119$19.42
Zip: 55414$20.00
Zip: 55104$18.46
Zip: 55108 $20.00
Zip: 55417$20.19
Zip: 55116$19.42
Zip: 55418$20.58
Zip: 55117$18.85
Zip: 55419$22.31
Zip: 55107$19.23
Zip: 55411$23.08
Zip: 55413$21.54
Zip: 55105$19.62
Zip: 55412$21.92
Zip: 55102$18.46
Zip: 55101$22.88
55405$18.85
Zip: 55408$18.85
Zip: 5510317.12
55410$23.85
Zip: 55409$21.92
Zip: 55404$17.31
Zip: 55114$22.50
Zip: 55430$20.96
Zip: 55403$18.46
55416$23.08
55401$30.19
55415$14.81
55455$21.35
55454$17.12
55402$25.96
Housing Wage for a two bedroom apartment by zip code Hourly Wage Needed$14.81 - $17.88
$17.89 - $20.58
$20.59 - $24.42
$24.43 - $30.19
MINNEAPOLIS / ST. PAUL SPOTLIGHT: WAGE NEEDED TO AFFORD A MODEST TWO-BEDROOM APARTMENT BY ZIP CODE
The housing wage for zip codes within the municipal borders of Minneapolis and St. Paul are higher than the region's 1-bedroom housing wage of $16.58. This is because many suburban areas across the region typically have lower housing costs than central city areas.
7www.mhponline.org
Zip: 55116$15.38
Zip: 55417$15.96
Zip: 55407$15.96
Zip: 55409$17.50
Zip: 55408$15.00
Zip: 55416$18.27
55403$14.62
55405$15.00
55404$13.65
Zip:55101$18.27
55454$13.65
Zip: 55102$14.62
Zip: 55414$15.96
Zip: 55106$14.81
Zip: 55117$15.00
Zip: 55119$15.38
Zip: 55104$14.62
Zip: 55406$15.96
Zip: 55418$16.35
Zip: 55412$17.5
Zip: 55419$17.69
Zip: 55107$15.19
Zip: 55411$18.27 Zip: 55413
$17.12
Zip: 55105$15.58
Zip: 55103$13.65
Zip: 55410$19.04
Zip: 55430$16.73
Zip: 55114$17.88
55401$24.04
55415$11.73
55455$16.92
55402$20.58 Zip: 55108 $15.96
Minneapolis/ St. Paul Spotlight: Wage Needed to Afford a Modest One-Bedroom Apartment by Zip Code
Hourly Wage Needed$11.73 - $14.23
$14.24 - $16.35
$16.36 - $19.42
$19.43 - $24.04
The housing wage for zip codes within the municipal borders of Minneapolis and St. Paul are higher than the region's 1-bedroom housing wage of $16.58. This is because many suburban areas across the region typically have lower housing costs than central city areas.
$
MINNEAPOLIS / ST. PAUL SPOTLIGHT: WAGE NEEDED TO AFFORD A MODEST ONE-BEDROOM APARTMENT BY ZIP CODE
8 www.mhponline.org
MINNEAPOLIS / ST. PAUL SPOTLIGHT
In every county of the seven-county metro area, median-income White households can easily afford the hourly wage needed to rent a two-bedroom apartment — but that’s not true for communities of color. For instance, in Hennepin County, a median-income White household earns $36 per hour, while a median-income Black household earns only $14 per hour — significantly below the wage necessary to afford even a one-bedroom apartment. In fact, median-income Black, Native American, and Hispanic households are all below the wages necessary to afford a modest two-bedroom apartment in Hennepin or Ramsey counties.
BLACK
Hennepin CountyRamsey County
1BR$16.58
2BR$20.88
WHITE
ASIAN
NATIVE AMERICAN
HISPANIC
$35.63$30.77
$13.57$13.37
$14.09$17.53
$20.47$18.05
$35.53$22.62
$32.11 $30.74
$20.30 $16.08 $14.57
BLACK NATIVE AMERICAN
HISPANIC WHITE ASIAN
$18.60
2 BRHOUSING WAGE
MINNESOTA: MEDIAN WAGES BY RACE2 Communities of color are disproportionately impacted by wide gaps between wages and rent.
The growing gap between wages and rent has a disproportionate impact on communities of color. Statewide, the median wages earned by Black and Native American workers is half that of white and Asian workers2. In the Twin Cities, these disparities are particularly stark. For instance, in Hennepin and Ramsey counties, the median income for a household of color is, on average, 40 percent less than the median income for a white household.
2 Median wages are for all households; not disaggregated by renters and owner households
9www.mhponline.org
MINNESOTA: MEDIAN WAGES BY RACE2
The housing wage is what a Minnesota workers need to earn to afford rent without paying more than 30 percent of their income on housing. In 2017, the income needed to afford the a modest two-bedroom apartment in the state of Minnesota is $38,700 per year — nearly $4,500 more than the median renter earns per year ($34,250). With housing wage at $18.60 per hour for a modest two-bedroom apartment and $14.67 for a modest one-bedroom apartment, rent is out of reach for workers in the vast majority of Minnesota counties.
Saint Louis
Cass
Itasca
LakePolk
Beltrami
Aitkin
Pine
Cook
Koochiching
Otter Tail
Clay
Roseau
Marshall
Becker
Todd
Stearns
Kittson
Lyon
Swift
Pope
Morrison
Renville
Rice
Carlton
Wilkin
Hubbard
Martin
Norman
Fillmore
Wright
Grant
Nobles
Murray
MowerRock
Sibley
Brown
Redwood
Jackson
Douglas
Meeker
Goodhue
Isanti
Winona
Dakota
Faribault Freeborn
OlmstedBlue Earth
Stevens
Scott
Traverse
Anoka
Steele
Houston
Dodge
McLeod
Hennepin
WabashaNicollet
Chippewa
Benton
Carver
Pennington
Red Lake
Yellow Medicine
Sherburne
Crow Wing
Lake of the Woods
Clearwater
Kandiyohi
Lincoln
Mille Lacs
Wadena
Kanabec
Lac Qui Parle
Waseca
Le Sueur
Big Stone Chisago
Cottonwood
Mahnomen
Pipestone
Watonwan
Washington
Ramsey
Housing Wage, Two Bedroom$13.10 - $13.58
$13.59 - $14.54
$14.55 - $15.65
$15.66 - $18.00
$18.01 - $20.88
Hourly "Housing Wage" Needed to Afford a 2-Bedroom"HOUSING WAGE" — WAGE NECESSARY TO AFFORD A
TWO-BEDROOM APARTMENT
From 2016 to 2017, the state housing wage increased by 5 percent — a higher rate of change from the 3 percent increase from 2015 to 2016.
Compared to the state average of $18.60, the housing wage in non-metro areas is nearly $5 less per hour at $13.86 for a two-bedroom apartment.
The highest housing wage in the state is located in the counties within the Minneapolis / St. Paul metro area, at $20.88 per hour — or $43,440 annually — to afford a modest two-bedroom apartment.
10 www.mhponline.org
Across the state, the housing wage has increased significantly over the past decade. In 2007, the housing wage for a modest two-bedroom apartment in Minnesota was $14.69. Ten years later, the wage has risen 27 percent to $18.60. Even adjusted for inflation, that’s an increase of nearly 18 percent. From 2016 to 2017, the state housing wage increased by 5 percent — a higher rate of change than the 3 percent increase from 2015 to 2016.
Saint Louis
Cass
Itasca
LakePolk
Beltrami
Aitkin
Pine
Cook
Koochiching
Otter Tail
Clay
Roseau
Marshall
Becker
Todd
Stearns
Kittson
Lyon
Swift
Pope
Morrison
Renville
Rice
Carlton
Wilkin
Hubbard
Martin
Norman
Fillmore
Wright
Grant
Nobles
Murray
MowerRock
Sibley
Brown
Redwood
Jackson
Douglas
Meeker
Goodhue
Isanti
Winona
Dakota
Faribault Freeborn
OlmstedBlue Earth
Stevens
Scott
Traverse
Anoka
Steele
Houston
Dodge
McLeod
Hennepin
WabashaNicollet
Chippewa
Benton
Carver
Pennington
Red Lake
Yellow Medicine
Sherburne
Crow Wing
Lake of the Woods
Clearwater
Kandiyohi
Lincoln
Mille Lacs
Wadena
Kanabec
Lac Qui Parle
Waseca
Le Sueur
Big Stone Chisago
Cottonwood
Mahnomen
Pipestone
Watonwan
Washington
Ramsey
Change in housing wage for a two-bedroom apartment at fair market rent, from 2007 to 2017
Percentage Change
5% - 15%
16% - 20%
21% - 25%
26% - 30%
31% - 45%
INCREASE IN HOUSING WAGE FROM 2007 TO 2017
Within Minnesota's major metro areas that were included in the 2007 Out of Reach report — Duluth; Fargo; Grand Forks; La Crosse; Minneapolis/St. Paul; Rochester; and St Cloud — the increase in the housing wage for a two bedroom apartment has been as high as 45 percent in Grand Forks, 29 percent in Fargo and 28 percent in Minneapolis / St. Paul.
Non-metro areas in Minnesota have experienced a more modest increase of 20 percent for housing wage over the past 10 years.
At the county level, Polk County has experienced the steepest increase in two-bedroom housing wage, jumping 45 percent since 2007. In this county, the hourly wage needed has risen from $11.33 to $16.42.
not adjusted for inflation
11www.mhponline.org
In 69 percent of Minnesota counties, the median-income renter can’t afford rent for a two-bedroom apartment. At the state level, there is a more than $100 monthly gap — or $1,200 annual gap — between median renter income and what’s needed to afford a two-bedroom apartment. In non-metro areas the gap decreases, but only to $45 per month or $540 per year.
Median renter income is enough to cover the cost of a modest one-bedroom apartment in the vast majority of counties across the state. But in nine counties a modest one-bedroom apartment is not affordable: St Louis (-$8 per month), Stevens (-$16), Blue Earth (-$30), Cook (-$38), Koochiching (-$42), Ramsey (-$45), Polk (-$46), Chisago (-$93), Big Stone (-$167).
Saint Louis
Cass
Itasca
LakePolk
Beltrami
Aitkin
Pine
Cook
Koochiching
Otter Tail
Clay
Roseau
Marshall
Becker
Todd
Stearns
Kittson
Lyon
Swift
Pope
Morrison
Renville
Rice
Carlton
Wilkin
Hubbard
Martin
Norman
Fillmore
Wright
Grant
Nobles
Murray
MowerRock
Sibley
Brown
Redwood
Jackson
Douglas
Meeker
Goodhue
Isanti
Winona
Dakota
Faribault Freeborn
OlmstedBlue Earth
Stevens
Scott
Traverse
Anoka
Steele
Houston
Dodge
McLeod
Hennepin
WabashaNicollet
Chippewa
Benton
Carver
Pennington
Red Lake
Yellow Medicine
Sherburne
Crow Wing
Lake of the Woods
Clearwater
Kandiyohi
Lincoln
Mille Lacs
Wadena
Kanabec
Lac Qui Parle
Waseca
Le Sueur
Big Stone Chisago
Cottonwood
Mahnomen
Pipestone
Watonwan
Washington
Ramsey
Gap($317) - ($207)
($206) - ($98)
($97) - $0
$1 - $121
$122 - $231
Gap by county between rent affordable at median renter income and fair market rent for a two bedroom apartmentGAP BETWEEN RENT FOR TWO-BEDROOM APARTMENT AND WHAT MEDIAN-INCOME RENTER CAN AFFORD
Grand Forks metro area has the highest gap of all the major metro areas in Minnesota, with a monthly difference of $246 between renter median income and what’s needed to afford a two-bedroom apartment. That means those renter households must spend $9,850 more per year than they can afford — the greatest disparity for major metropolitan areas in the state.
In 29 counties, the gap between renter median income and rent for a two-bedroom apartment exceeds $100; the largest gap is in Chisago County (-$317 per month) followed closely by Ramsey County (-$269 per month).
There are three counties where median income renters must spend from $10,000-$12,000 more per year than they can afford for a modest two-bedroom apartment: Big Stone, Chisago, and Ramsey counties.
12 www.mhponline.org
Even for median-income renters, housing costs far exceed earnings. For the median-income renter household in Minnesota, an affordable rent — one that does not exceed 30 percent of a household’s monthly income — is $856 per month. That’s nearly $100 less per month than is required to afford a modest two-bedroom apartment ($967). At the state level, Minnesota median-income renter households would need a 13 percent raise to afford rent for a modest two-bedroom apartment.
Saint Louis
Cass
Itasca
LakePolk
Beltrami
Aitkin
Pine
Cook
Koochiching
Otter Tail
Clay
Roseau
Marshall
Becker
Todd
Stearns
Kittson
Lyon
Swift
Pope
Morrison
Renville
Rice
Carlton
Wilkin
Hubbard
Martin
Norman
Fillmore
Wright
Grant
Nobles
Murray
MowerRock
Sibley
Brown
Redwood
Jackson
Douglas
Meeker
Goodhue
Isanti
Winona
Dakota
Faribault Freeborn
OlmstedBlue Earth
Stevens
Scott
Traverse
Anoka
Steele
Houston
Dodge
McLeod
Hennepin
WabashaNicollet
Chippewa
Benton
Carver
Pennington
Red Lake
Yellow Medicine
Sherburne
Crow Wing
Lake of the Woods
Clearwater
Kandiyohi
Lincoln
Mille Lacs
Wadena
Kanabec
Lac Qui Parle
Waseca
Le Sueur
Big Stone Chisago
Cottonwood
Mahnomen
Pipestone
Watonwan
Washington
Ramsey
Affordable Rent$414 - $553
$554 - $652
$653 - $763
$764 - $912
$913 - $1,122
Apartment Cost Affordable for a Median Income RenterRENT AFFORDABLE TO MEDIAN-INCOME RENTER
Median-income renters in Washington County can afford the highest rent in the state at $1,122 per month.
Median-income renters in Big Stone County can only afford $414 per month, the lowest level in the state.
In contrast to the $856 affordable to the median-income renter at the statewide level, the median-income renter household in non-metro Minnesota can afford far less — just $675 per month.
The highest median-renter incomes are isolated to four counties of the Twin Cities region, with the highest in Dakota, Carver, Scott and Washington counties.
13www.mhponline.org
The lowest income households in Minnesota can only afford $611 per month in rent. Statewide, there is a $152 monthly gap between what a household at 30 percent of area median income earns and what would be required to pay for a modest one-bedroom apartment. Even efficiencies are out of reach; a household would need to earn nearly $200 more per year to afford a modest zero-bedroom apartment.
Saint Louis
Cass
Itasca
LakePolk
Beltrami
Aitkin
Pine
Cook
Koochiching
Otter Tail
Clay
Roseau
Marshall
Becker
Todd
Stearns
Kittson
Lyon
Swift
Pope
Morrison
Renville
Rice
Carlton
Wilkin
Hubbard
Martin
Norman
Fillmore
Wright
Grant
Nobles
Murray
MowerRock
Sibley
Brown
Redwood
Jackson
Douglas
Meeker
Goodhue
Isanti
Winona
Dakota
Faribault Freeborn
OlmstedBlue Earth
Stevens
Scott
Traverse
Anoka
Steele
Houston
Dodge
McLeod
Hennepin
WabashaNicollet
Chippewa
Benton
Carver
Pennington
Red Lake
Yellow Medicine
Sherburne
Crow Wing
Lake of the Woods
Clearwater
Kandiyohi
Lincoln
Mille Lacs
Wadena
Kanabec
Lac Qui Parle
Waseca
Le Sueur
Big Stone Chisago
Cottonwood
Mahnomen
Pipestone
Watonwan
Washington
Ramsey
Dollar Gap
($219) - ($164)
($163) - ($111)
($110) - ($51)
($50) - $0
$1 - $36
Gap between those at 30 percent of Area Median Income and income needed to afford a one bedroom apartment at Fair Market RentGAP BETWEEN RENT FOR ONE-BEDROOM APARTMENT AND WHAT LOWEST INCOME MINNESOTANS CAN AFFORD
An individual earning 30 percent of area median income can afford a modest one-bedroom apartment in only four of Minnesota’s 87 counties: Waseca, Sibley, Kittson, and Lyon.
In 29 counties, the monthly gap exceeds $100. Mille Lacs County has the largest gap, with the lowest income residents facing a $219 monthly deficit to pay rent on a one-bedroom apartment.
In all of the major metro areas, rent for a one-bedroom apartment is too expensive for a household earning 30 percent of the area median income. In Minneapolis / St. Paul the gap is $184 per month, or 2,200 per year.
HUD considers households earning less than 30 percent of area median income "extremely low income"
14 www.mhponline.org
A minimum wage earner in Minnesota must work more than one full-time job in every county in the state to be able to afford rent for even a one-bedroom apartment. A minimum wage earner would have to work more than 40 hours per week to afford even a one-bedroom apartment in all Minnesota counties. Statewide, a one-bedroom apartment costs $269 more per month than a minimum wage earner can afford.
Because Minnesota has increased its minimum wage above the federal minimum wage, there is some good news. In 2007, when the minimum wage in Minnesota was $6.15, it took 78 hours per week to afford a one-bedroom apartment. With minimum wage rising to $9.50, that has dropped to 62 hours per week — a decrease of 21 percent. For a two-bedroom apartment the hours required at minimum wage to afford rent dropped 19 percent.
Saint Louis
Cass
Itasca
LakePolk
Beltrami
Aitkin
Pine
Cook
Koochiching
Otter Tail
Clay
Roseau
Marshall
Becker
Todd
Stearns
Kittson
Lyon
Swift
Pope
Morrison
Renville
Rice
Carlton
Wilkin
Hubbard
Martin
Norman
Fillmore
Wright
Grant
Nobles
Murray
MowerRock
Sibley
Brown
Redwood
Jackson
Douglas
Meeker
Goodhue
Isanti
Winona
Dakota
Faribault Freeborn
OlmstedBlue Earth
Stevens
Scott
Traverse
Anoka
Steele
Houston
Dodge
McLeod
Hennepin
WabashaNicollet
Chippewa
Benton
Carver
Pennington
Red Lake
Yellow Medicine
Sherburne
Crow Wing
Lake of the Woods
Clearwater
Kandiyohi
Lincoln
Mille Lacs
Wadena
Kanabec
Lac Qui Parle
Waseca
Le Sueur
Big Stone Chisago
Cottonwood
Mahnomen
Pipestone
Watonwan
Washington
Ramsey
Work Hours/ Week41 - 42
43 - 45
46 - 50
51 - 58
59 - 70
Hours at Minimum Wage Needed to Afford a 1-Bedroom ApartmentHOURS AT MINIMUM WAGE TO AFFORD 1 BEDROOM APARTMENT
In non-metro areas, minimum wage workers must work 45 hours per week to afford a modest one-bedroom apartment, and 58 hours per week for a two-bedroom.
Minimum wage workers in the Twin Cities metropolitan area must work 70 hours per week to afford a modest one-bedroom apartment and 88 hours per week for a two-bedroom — the highest number of hours for major metropolitan areas in the state.
15www.mhponline.org
OUT OF REACH 2017 | NATIONAL LOW INCOME HOUSING COALITION 129
Minnesota RENTER HOUSEHOLDS
Renter households (2011-2015)
% of total households
(2011-2015)
AREA MEDIAN INCOME (AMI)
2 BRFMR
Annual income needed
to afford2 BR FMR
Annual AMI
Monthly rentaffordable
at AMI30%
of AMI
Monthly rent
affordableat 30%of AMI
Monthly rent
affordableat mean
renter wage3 5
1
HOUSING COSTS
Estimated hourly mean renter wage
(2017)
Full-time jobs at minimum wage
needed to afford 2 BR FMR
Hourly wage necessary to afford 2 BR
FMR
Full-time jobs at mean renter
wage needed to afford 2 BR FMR
FY17 HOUSING WAGE
2 4
$721 $28,836 24%$13.86 $9.601.5 1.4$499Combined Nonmetro Areas $64,773 $19,432 $486 118,972$1,619
Minnesota $2,036$967 $38,697 28%$18.60 $14.28 1.3$742$611 602,1272.0 $81,450 $24,435
Counties
Aitkin County 1,339$54,200 $407$1,355$706 $28,240 18%$16,260$13.58 $8.851.4 1.5$460
Anoka County 24,955$90,400 $678$2,260$1,086 $43,440 20%$27,120$20.88 $13.042.2 1.6$678
Becker County 2,829$63,600 $477$1,590$682 $27,280 21%$19,080$13.12 $8.911.4 1.5$463
Beltrami County 5,178$57,100 $428$1,428$730 $29,200 31%$17,130$14.04 $9.691.5 1.4$504
Benton County 4,649$70,000 $525$1,750$740 $29,600 30%$21,000$14.23 $8.741.5 1.6$454
Metropolitan Areas
Duluth MSA $67,200 $504$1,680$771 $30,840 28%$20,160$14.83 $9.901.6 1.5$51527,308
Fargo MSA $75,200 $564$1,880$767 $30,680 30%$22,560$14.75 $7.451.6 2.0$3886,758
Fillmore County HMFA $68,100 $511$1,703$681 $27,240 22%$20,430$13.10 $7.351.4 1.8$3821,849
Grand Forks MSA $66,500 $499$1,663$854 $34,160 28%$19,950$16.42 $7.801.7 2.1$4053,510
La Crosse-Onalaska MSA $72,000 $540$1,800$814 $32,560 19%$21,600$15.65 $6.821.6 2.3$3551,521
Le Sueur County HMFA $73,300 $550$1,833$745 $29,800 19%$21,990$14.33 $10.161.5 1.4$5282,006
Mankato-North Mankato MSA $78,000 $585$1,950$853 $34,120 33%$23,400$16.40 $10.001.7 1.6$52012,210
Mille Lacs County HMFA $60,800 $456$1,520$844 $33,760 26%$18,240$16.23 $8.851.7 1.8$4602,641
Minneapolis-St. Paul-Bloomington HMFA $90,400 $678$2,260$1,086 $43,440 30%$27,120$20.88 $16.322.2 1.3$849384,053
Rochester HMFA $88,600 $665$2,215$936 $37,440 25%$26,580$18.00 $13.911.9 1.3$72316,498
Sibley County HMFA $69,800 $524$1,745$694 $27,760 21%$20,940$13.35 $11.081.4 1.2$5761,282
St. Cloud MSA $70,000 $525$1,750$740 $29,600 30%$21,000$14.23 $11.211.5 1.3$58321,851
Wabasha County HMFA $70,000 $525$1,750$771 $30,840 19%$21,000$14.83 $8.861.6 1.7$4601,668
FMR=Fiar Market Rent (HUD, 1999)
5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.
1: BR = Bedroom
3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income
2: FMR = Fiscal Year 2017 Fair Market Rent.
16 www.mhponline.org
OUT OF REACH 2017 | NATIONAL LOW INCOME HOUSING COALITION 130
Minnesota RENTER HOUSEHOLDS
Renter households (2011-2015)
% of total households
(2011-2015)
AREA MEDIAN INCOME (AMI)
2 BRFMR
Annual income needed
to afford2 BR FMR
Annual AMI
Monthly rentaffordable
at AMI30%
of AMI
Monthly rent
affordableat 30%of AMI
Monthly rent
affordableat mean
renter wage3 5
1
HOUSING COSTS
Estimated hourly mean renter wage
(2017)
Full-time jobs at minimum wage
needed to afford 2 BR FMR
Hourly wage necessary to afford 2 BR
FMR
Full-time jobs at mean renter
wage needed to afford 2 BR FMR
FY17 HOUSING WAGE
2 4
Big Stone County 479$62,400 $468$1,560$681 $27,240 21%$18,720$13.10 $6.161.4 2.1$320
Blue Earth County 8,795$78,000 $585$1,950$853 $34,120 35%$23,400$16.40 $9.851.7 1.7$512
Brown County 2,377$67,900 $509$1,698$681 $27,240 22%$20,370$13.10 $9.501.4 1.4$494
Carlton County 2,858$67,200 $504$1,680$771 $30,840 21%$20,160$14.83 $9.491.6 1.6$493
Carver County 6,767$90,400 $678$2,260$1,086 $43,440 20%$27,120$20.88 $12.652.2 1.7$658
Cass County 2,472$55,500 $416$1,388$726 $29,040 19%$16,650$13.96 $6.991.5 2.0$363
Chippewa County 1,494$67,500 $506$1,688$681 $27,240 30%$20,250$13.10 $11.071.4 1.2$576
Chisago County 2,980$90,400 $678$2,260$1,086 $43,440 15%$27,120$20.88 $8.462.2 2.5$440
Clay County 6,758$75,200 $564$1,880$767 $30,680 30%$22,560$14.75 $7.451.6 2.0$388
Clearwater County 751$55,600 $417$1,390$681 $27,240 22%$16,680$13.10 $10.671.4 1.2$555
Cook County 697$65,400 $491$1,635$768 $30,720 26%$19,620$14.77 $5.841.6 2.5$303
Cottonwood County 1,020$57,100 $428$1,428$681 $27,240 21%$17,130$13.10 $8.041.4 1.6$418
Crow Wing County 6,518$62,500 $469$1,563$788 $31,520 25%$18,750$15.15 $9.701.6 1.6$504
Dakota County 39,515$90,400 $678$2,260$1,086 $43,440 25%$27,120$20.88 $13.852.2 1.5$720
Dodge County 1,295$88,600 $665$2,215$936 $37,440 17%$26,580$18.00 $10.601.9 1.7$551
Douglas County 3,687$68,800 $516$1,720$745 $29,800 24%$20,640$14.33 $10.091.5 1.4$525
Faribault County 1,477$59,400 $446$1,485$681 $27,240 23%$17,820$13.10 $11.571.4 1.1$602
Fillmore County 1,849$68,100 $511$1,703$681 $27,240 22%$20,430$13.10 $7.351.4 1.8$382
Freeborn County 3,068$60,800 $456$1,520$681 $27,240 24%$18,240$13.10 $11.021.4 1.2$573
Goodhue County 4,547$75,500 $566$1,888$792 $31,680 24%$22,650$15.23 $10.891.6 1.4$566
Grant County 499$62,500 $469$1,563$681 $27,240 20%$18,750$13.10 $8.041.4 1.6$418
Hennepin County 182,801$90,400 $678$2,260$1,086 $43,440 37%$27,120$20.88 $18.572.2 1.1$966
Houston County 1,521$72,000 $540$1,800$814 $32,560 19%$21,600$15.65 $6.821.6 2.3$355
Hubbard County 1,638$58,900 $442$1,473$681 $27,240 19%$17,670$13.10 $9.341.4 1.4$486
Isanti County 2,691$90,400 $678$2,260$1,086 $43,440 19%$27,120$20.88 $10.482.2 2.0$545
Itasca County 3,889$58,500 $439$1,463$740 $29,600 21%$17,550$14.23 $10.151.5 1.4$528
FMR=Fiar Market Rent (HUD, 1999)
5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.
1: BR = Bedroom
3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income
2: FMR = Fiscal Year 2017 Fair Market Rent.
17www.mhponline.org
OUT OF REACH 2017 | NATIONAL LOW INCOME HOUSING COALITION 131
Minnesota RENTER HOUSEHOLDS
Renter households (2011-2015)
% of total households
(2011-2015)
AREA MEDIAN INCOME (AMI)
2 BRFMR
Annual income needed
to afford2 BR FMR
Annual AMI
Monthly rentaffordable
at AMI30%
of AMI
Monthly rent
affordableat 30%of AMI
Monthly rent
affordableat mean
renter wage3 5
1
HOUSING COSTS
Estimated hourly mean renter wage
(2017)
Full-time jobs at minimum wage
needed to afford 2 BR FMR
Hourly wage necessary to afford 2 BR
FMR
Full-time jobs at mean renter
wage needed to afford 2 BR FMR
FY17 HOUSING WAGE
2 4
Jackson County 1,024$66,200 $497$1,655$681 $27,240 24%$19,860$13.10 $10.671.4 1.2$555
Kanabec County 1,217$56,500 $424$1,413$748 $29,920 20%$16,950$14.38 $9.501.5 1.5$494
Kandiyohi County 4,576$66,600 $500$1,665$692 $27,680 27%$19,980$13.31 $8.261.4 1.6$429
Kittson County 367$68,900 $517$1,723$681 $27,240 19%$20,670$13.10 $9.131.4 1.4$475
Koochiching County 1,272$60,200 $452$1,505$681 $27,240 22%$18,060$13.10 $8.181.4 1.6$426
Lac qui Parle County 597$63,400 $476$1,585$681 $27,240 19%$19,020$13.10 $9.691.4 1.4$504
Lake County 1,025$64,900 $487$1,623$726 $29,040 20%$19,470$13.96 $11.361.5 1.2$591
Lake of the Woods County 236$55,400 $416$1,385$681 $27,240 15%$16,620$13.10 $7.911.4 1.7$411
Le Sueur County 2,006$73,300 $550$1,833$745 $29,800 19%$21,990$14.33 $10.161.5 1.4$528
Lincoln County 517$65,700 $493$1,643$681 $27,240 21%$19,710$13.10 $8.881.4 1.5$462
Lyon County 3,212$73,100 $548$1,828$681 $27,240 32%$21,930$13.10 $10.161.4 1.3$528
McLeod County 3,520$70,600 $530$1,765$687 $27,480 24%$21,180$13.21 $10.641.4 1.2$553
Mahnomen County 533$46,000 $345$1,150$681 $27,240 27%$13,800$13.10 $8.891.4 1.5$462
Marshall County 775$68,300 $512$1,708$681 $27,240 19%$20,490$13.10 $11.051.4 1.2$575
Martin County 2,318$64,400 $483$1,610$681 $27,240 26%$19,320$13.10 $9.751.4 1.3$507
Meeker County 1,824$67,300 $505$1,683$742 $29,680 20%$20,190$14.27 $8.231.5 1.7$428
Mille Lacs County 2,641$60,800 $456$1,520$844 $33,760 26%$18,240$16.23 $8.851.7 1.8$460
Morrison County 2,716$62,900 $472$1,573$681 $27,240 20%$18,870$13.10 $7.891.4 1.7$410
Mower County 4,330$65,400 $491$1,635$756 $30,240 28%$19,620$14.54 $11.541.5 1.3$600
Murray County 699$69,600 $522$1,740$681 $27,240 19%$20,880$13.10 $10.961.4 1.2$570
Nicollet County 3,415$78,000 $585$1,950$853 $34,120 27%$23,400$16.40 $10.421.7 1.6$542
Nobles County 2,186$61,700 $463$1,543$681 $27,240 28%$18,510$13.10 $11.931.4 1.1$621
Norman County 527$61,300 $460$1,533$681 $27,240 19%$18,390$13.10 $9.981.4 1.3$519
Olmsted County 15,203$88,600 $665$2,215$936 $37,440 26%$26,580$18.00 $14.091.9 1.3$733
Otter Tail County 5,169$65,000 $488$1,625$681 $27,240 21%$19,500$13.10 $7.951.4 1.6$413
Pennington County 1,542$66,900 $502$1,673$701 $28,040 26%$20,070$13.48 $10.761.4 1.3$560
FMR=Fiar Market Rent (HUD, 1999)
5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.
1: BR = Bedroom
3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income
2: FMR = Fiscal Year 2017 Fair Market Rent.
18 www.mhponline.org
OUT OF REACH 2017 | NATIONAL LOW INCOME HOUSING COALITION 132
Minnesota RENTER HOUSEHOLDS
Renter households (2011-2015)
% of total households
(2011-2015)
AREA MEDIAN INCOME (AMI)
2 BRFMR
Annual income needed
to afford2 BR FMR
Annual AMI
Monthly rentaffordable
at AMI30%
of AMI
Monthly rent
affordableat 30%of AMI
Monthly rent
affordableat mean
renter wage3 5
1
HOUSING COSTS
Estimated hourly mean renter wage
(2017)
Full-time jobs at minimum wage
needed to afford 2 BR FMR
Hourly wage necessary to afford 2 BR
FMR
Full-time jobs at mean renter
wage needed to afford 2 BR FMR
FY17 HOUSING WAGE
2 4
Pine County 2,486$56,500 $424$1,413$785 $31,400 22%$16,950$15.10 $6.961.6 2.2$362
Pipestone County 1,020$59,400 $446$1,485$681 $27,240 26%$17,820$13.10 $8.121.4 1.6$422
Polk County 3,510$66,500 $499$1,663$854 $34,160 28%$19,950$16.42 $7.801.7 2.1$405
Pope County 956$67,800 $509$1,695$706 $28,240 20%$20,340$13.58 $11.551.4 1.2$601
Ramsey County 84,740$90,400 $678$2,260$1,086 $43,440 41%$27,120$20.88 $16.712.2 1.2$869
Red Lake County 292$65,100 $488$1,628$681 $27,240 18%$19,530$13.10 $7.451.4 1.8$388
Redwood County 1,355$63,800 $479$1,595$681 $27,240 21%$19,140$13.10 $10.361.4 1.3$539
Renville County 1,297$64,300 $482$1,608$681 $27,240 20%$19,290$13.10 $11.181.4 1.2$581
Rice County 5,877$76,000 $570$1,900$881 $35,240 26%$22,800$16.94 $10.141.8 1.7$527
Rock County 972$63,800 $479$1,595$681 $27,240 25%$19,140$13.10 $8.881.4 1.5$462
Roseau County 1,351$63,600 $477$1,590$681 $27,240 21%$19,080$13.10 $10.031.4 1.3$522
St. Louis County 24,450$67,200 $504$1,680$771 $30,840 29%$20,160$14.83 $9.951.6 1.5$517
Scott County 7,896$90,400 $678$2,260$1,086 $43,440 17%$27,120$20.88 $11.452.2 1.8$595
Sherburne County 5,853$90,400 $678$2,260$1,086 $43,440 19%$27,120$20.88 $10.002.2 2.1$520
Sibley County 1,282$69,800 $524$1,745$694 $27,760 21%$20,940$13.35 $11.081.4 1.2$576
Stearns County 17,202$70,000 $525$1,750$740 $29,600 30%$21,000$14.23 $11.721.5 1.2$609
Steele County 3,375$74,700 $560$1,868$771 $30,840 24%$22,410$14.83 $8.801.6 1.7$458
Stevens County 1,203$73,700 $553$1,843$681 $27,240 33%$22,110$13.10 $8.881.4 1.5$462
Swift County 1,126$67,500 $506$1,688$681 $27,240 27%$20,250$13.10 $10.041.4 1.3$522
Todd County 1,807$57,300 $430$1,433$681 $27,240 18%$17,190$13.10 $8.271.4 1.6$430
Traverse County 294$66,500 $499$1,663$681 $27,240 19%$19,950$13.10 $8.531.4 1.5$444
Wabasha County 1,668$70,000 $525$1,750$771 $30,840 19%$21,000$14.83 $8.861.6 1.7$460
Wadena County 1,311$51,800 $389$1,295$681 $27,240 23%$15,540$13.10 $9.031.4 1.5$470
Waseca County 1,656$69,100 $518$1,728$681 $27,240 23%$20,730$13.10 $10.881.4 1.2$566
Washington County 18,068$90,400 $678$2,260$1,086 $43,440 20%$27,120$20.88 $11.182.2 1.9$581
Watonwan County 1,142$63,800 $479$1,595$681 $27,240 26%$19,140$13.10 $8.601.4 1.5$447
FMR=Fiar Market Rent (HUD, 1999)
5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.
1: BR = Bedroom
3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income
2: FMR = Fiscal Year 2017 Fair Market Rent.
19www.mhponline.org
OUT OF REACH 2017 | NATIONAL LOW INCOME HOUSING COALITION 133
Minnesota RENTER HOUSEHOLDS
Renter households (2011-2015)
% of total households
(2011-2015)
AREA MEDIAN INCOME (AMI)
2 BRFMR
Annual income needed
to afford2 BR FMR
Annual AMI
Monthly rentaffordable
at AMI30%
of AMI
Monthly rent
affordableat 30%of AMI
Monthly rent
affordableat mean
renter wage3 5
1
HOUSING COSTS
Estimated hourly mean renter wage
(2017)
Full-time jobs at minimum wage
needed to afford 2 BR FMR
Hourly wage necessary to afford 2 BR
FMR
Full-time jobs at mean renter
wage needed to afford 2 BR FMR
FY17 HOUSING WAGE
2 4
Wilkin County 680$67,300 $505$1,683$681 $27,240 24%$20,190$13.10 $7.381.4 1.8$384
Winona County 5,743$71,200 $534$1,780$714 $28,560 30%$21,360$13.73 $8.771.4 1.6$456
Wright County 7,787$90,400 $678$2,260$1,086 $43,440 17%$27,120$20.88 $9.732.2 2.1$506
Yellow Medicine County 888$63,200 $474$1,580$681 $27,240 21%$18,960$13.10 $9.531.4 1.4$495
FMR=Fiar Market Rent (HUD, 1999)
5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.
1: BR = Bedroom
3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income
2: FMR = Fiscal Year 2017 Fair Market Rent.
Out of Reach Minnesota is released jointly by the Minnesota Housing Partnership and the National Low Income Housing Coalition (NLIHC), a Washington, D.C.-based organization dedicated solely to achieving socially just public policy that assures people with the lowest incomes in the United States have affordable and decent homes. Contact Carolyn Szczepanski at carolyn.szczepanski@mhponline.org or (651) 925-5540 for assistance in accessing or analyzing Out of Reach data for any county or metro area of Minnesota — select metro zip codes.
CREDITS AND ACKNOWLEDGMENTSWriting, data analysis and mapping by Gabriela Norton, MHP Research and Communications AssociateEditing, design and layout by Carolyn Szczepanski, MHP Director of Research and CommunicationsData review by Atticus Jaramillo, PhD candidate, University of North Carolina-Chapel Hill
Recommended