Let’s look at how much money Americans need to make to afford a comfy two-bedroom apartment without going broke. According to some reports, you shouldn’t spend more than 30% of your income on rent if you want to have enough left over to enjoy other aspects of your life. Here are nine states where you need to make the most and nine where you need to make the least.
Surf’s Up, So Are the Rents
This data comes from the 2023 “Out of Reach” report by the National Low Income Housing Coalition. To nobody’s surprise, California tops this list, as you’d need to pull in $42.25 an hour to live comfortably in a two-bedroom pad. Clearly, that dream of sun and sea comes with a price tag that’s through the roof.
Paradise Ain’t Cheap
To live in paradise and enjoy Hawaii’s breathtaking views, you have to earn around $41.83 an hour. These numbers are pretty high, given the limited amount of land and everyone wanting a piece of this tropical heaven. Even though tourists love the scenery, locals struggle to find affordable living spaces, groceries, and gas.
Not Just Brains, but Bucks
Massachusetts is the land of prestigious colleges and booming businesses that demand $41.64 an hour to afford a decent two-bedroom. Being smart isn’t enough because your wallet needs to keep up with your brain here. Thanks to high educational standards and the booming tech industry, it’s difficult for even well-paid professionals to find affordable housing.
Big City and Big Wages
You’ll need to earn $40.08 an hour to enjoy the state that never sleeps, aka New York, without worrying about bills. Living here has its perks: endless entertainment and cultural attractions at every corner, but it sure isn’t cheap. The only way to match the city’s high energy bills and higher rents is to get an exceedingly well-paid job.
A Tale of Two Economies
It doesn’t matter if you’re in techy Washington or wide-open Wyoming because you’re looking at $36.33 an hour to make rent in both states. The number of employment opportunities in Washington has hiked up prices, while there aren’t enough places to go around in Wyoming. Who would’ve thought two different states could have such similar statistics?
Capitol Costs
D.C. might be the nation’s capital, but it’s also capital pricey as you’ll need $35.35 an hour to live comfortably here, showing that the cost of being close to power is no joke. After all, high demand and high stakes make for high rents. The number of government workers means there’s always a fight for good living spaces, increasing prices even more.
Paying for Proximity
Just next door to NYC, New Jersey residents shell out $33.50 an hour, where you’re paying for the convenience of being close to the big city without actually being in the thick of it. But is that convenience really worth it when the cost is so high? Many people choose New Jersey as a cost-effective alternative to New York, although it’s clearly not perfect.
Mountain High Prices
If you want to enjoy Colorado’s stunning landscapes and huge cities, you’ll need to earn $32.13 an hour. Many people are flocking here for outdoor life and tech jobs, which is causing rents to keep climbing. The situation is particularly bad in popular areas like Denver and Boulder.
Steady and Steep
In Connecticut, you must earn around $31.93 an hour to have a healthy work-life balance without too much hassle. This state mixes city convenience with quiet suburbs, but neither comes cheap. Locals often work in high-paying positions just to cope with the high costs, and being close to major urban centers like New York City and Boston doesn’t help.
Sweet Home Affordable
On the opposite side of the list, we have Alabama, where you’ll need to earn $18.13 an hour to comfortably afford a two-bedroom home. In this state, your dollar stretches further, so you can enjoy all that southern charm without a hefty price tag. Affordable living doesn’t mean less quality but more room to breathe financially.
Heartland Living
Likewise, you’ll also need $18.13 an hour for a similar setup in Iowa, a state famous for its friendly communities and wide open spaces. This state offers a mix of affordability and quality of life that’s hard to beat, right in the heart of America. Living in Iowa means you’ll have plenty left over for whatever you want to do.
Where the Wind Comes Sweeping Down the Plains
Oklahoma is just a notch lower at $18.00 an hour, mostly from its booming energy industry and strong agricultural base. Thanks to its low living costs and strong economy, Oklahoma is an attractive place for renters seeking good value for their money. It’s a good choice for both young professionals and families.
Unbridled Affordability
To live comfortably in the Bluegrass State, you’ll only need to earn $17.90 an hour. Kentucky’s cost of living is as appealing as its famous horse farms, offering scenic beauty and affordability in one neat package. Residents here often have more disposable income to enjoy local festivities like horse racing and bourbon tasting without any financial pressures.
Northern Value
Earning $17.79 an hour in North Dakota will cover your housing needs, thanks to the state’s small population and successful energy industries. It’s a place where economic growth doesn’t have to compete with living costs, and that’s great for residents. North Dakota has a lot of nice homes for you to choose from, so you won’t need to compromise on quality or affordability.
Great Plains and Lower Costs
You’ll only need $17.49 an hour in South Dakota to manage a two-bedroom home. It’s way better for your wallet than some other state, meaning more money left to enjoy all Mother Nature has to offer. Here, you can fall in love with a peaceful lifestyle without the hustle and expense of big-city living.
Budget-Friendly Blues
$17.21 an hour gets the job done in Mississippi, and living here means you can cover your housing costs relatively stress-free. You’ll have enough left over in your budget to indulge in the rich cultural heritage, whether that’s blues music or southern cuisine. You can do it all at a pace that’s truly laid back.
Rustic and Reasonable
West Virginia is pretty affordable since you only need to make $16.64 an hour, though there are rumors that prices might increase as more people discover the state’s quiet beauty. It’s a hidden gem that’ll give you affordability and beauty, which is why it’s perfect for the treehuggers out there. Many people in more urban states are pretty jealous of life here.
More Bang for Your Buck
Arkansas rounds out our list, where you’ll need only $16.27 an hour to live a pretty sweet life. If you’re after a deal, then you might want to move here, as the state’s generous living costs mean your paycheck stretches further. Arkansas also has a rich cultural scene that provides a high quality of life without high costs.
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