Anyone looking for work in America can expect to get paid at least $7.25 USD an hour, but finding a place to live on that wage is far from straightforward. According to the National Low Income Housing Coalition (NLIHC), the average one-bedroom apartment in the United States is out of reach for minimum-wage earners. The NLIHC estimates that an American worker needs to earn an average of $17.90 USD an hour to afford a modest home, meaning that a minimum-wage earner would need to hold not only a second job but earn another $3.40 USD an hour on top of that. According to the NLIHC's annual report, there are only 22 counties across five states --Arizona, California, Colorado, Oregon, and Washington -- in which someone making minimum wage can afford an apartment at fair market rent. That's at least in part because those states pay higher wages than the federally-mandated minimum of $7.25 an hour. The NLIHC's findings are based on the common rule of thumb that housing should not eat up more than 30 percent of one's wages.
Working at a minimum:
- Since it was established in 2009, the U.S. minimum wage of $7.25 an hour has lost nearly 10 percent of its purchasing power.
- As of 2019, the District of Columbia pays the highest minimum wage in the nation, at $11.50 an hour.
- The average age of someone earning minimum wage is 36. Thirty-seven percent of minimum-wage earners are at least 40 years old.