The federal minimum wage has remained unchanged since 2009, when it was last raised from $6.55 to $7.25. Globally, the U.S. ranks 23rd in terms of its minimum wage purchasing power, falling behind countries like Poland, South Korea, Spain, and Canada.
But while wages have remained stagnant, rent prices have not. As a result, full-time minimum wage earners struggle to afford even basic living expenses. In many cases, workers will overextend their budgets to cover rent, leaving little room for other necessities such as groceries, health insurance, and transportation.
While the Raise the Wage Act of 2025 proposes raising the minimum wage to $17 by 2030, this isn’t enough for the majority of workers. Using recent data from Zumper, Zoocasa analyzed 50 American cities to determine the minimum income required to rent a median-priced one-bedroom apartment, assuming no more than 30% of income is spent on housing. The data shows the substantial gap between the current minimum wage and what is necessary for a livable wage.
Even the Highest Minimum Wages Aren’t Enough
At $20.76, Seattle has one of the highest minimum wages in the country. Still, this only comfortably affords a minimum wage worker an apartment priced at or below $1,079, far above the city’s current median one-bedroom rent of $1,900. A Seattle worker would need to earn $36.54 to afford an apartment at that price without overspending.
Denver, Los Angeles, and Washington, D.C. all have minimum wages above $17, yet this only covers 40-60% of the cost of an apartment in these cities. In Denver, minimum wage workers need to earn $12.34 more per hour, while those in Los Angeles and Washington, D.C. need to earn over $24 more to stay within budget.
The disparity between income and rent is most pronounced in New York City, where the minimum wage is $68 short of affording the median one-bedroom rent of $4,400. The City is scheduled to raise the wage from $16.50 to $17.00 in 2026, but if rents continue to climb, a $0.50 increase will provide little relief.
Minimum wage earners in Boston and Jersey City face similar difficulties, with their salaries covering rent for less than 30% of an apartment. Workers in these cities need to earn $40 more per hour to afford a one-bedroom apartment. But unlike New York, Massachusetts currently has no set date to raise the current minimum wage from $15.00—let alone any plans to raise it to the $55.77 needed in Boston.
St. Louis, Sioux Falls, Omaha, Detroit, and Little Rock are the cities where a minimum wage worker is closest to being able to afford housing. In these locations, the minimum wage is less than $6 shy of the income needed for a one-bedroom apartment, representing a significant affordability gap compared to other metros.
Federal Minimum Wage Lags Livable Wage by at Least $6
Currently, twenty states adhere to the federal minimum wage of $7.25. This group includes states that either have no minimum wage or a rate set below the federal standard, in which case the federal minimum wage applies.
This means that wages in these states haven’t increased in 16 years. In the best-case scenario, in Wichita, the minimum wage is only $6.40 below what is required to afford a one-bedroom apartment. But in the worst-case scenario, skyrocketing rents are keeping workers “house poor”.
This is particularly noticeable in Sun Belt states, particularly South Carolina and North Carolina, which remain top destinations for movers in 2025. Unfortunately, minimum wage earners face significant housing affordability gaps in both Charlotte and Charleston. In Charlotte, the minimum wage is $20.06 less than the amount needed to afford the median one-bedroom rent of $1,420. The gap is even wider in Charleston, where minimum wage workers earn $29.29 below the necessary income to afford the $1,900 median one-bedroom rent.
Although more affordable than the Northeast or West, this trend is prevalent across the Midwest and South. Renters need to earn over $20 an hour to afford rent in New Orleans, Indianapolis, Birmingham, Houston, and Milwaukee—all of which currently have a minimum wage of just $7.25. The affordability gap is even more extreme in Nashville and Atlanta, where renters need to earn over $30 an hour to afford the median rent.
Two Minimum Wage Workers Can Afford Housing in Just 17 Cities
Two salaries are better than one, especially when it comes to rental affordability. While single minimum wage earners cannot afford rent in any city, a dual-income couple (both earning the minimum wage) can afford a one-bedroom apartment in 17 cities.
Notably, some high-cost-of-living cities become within reach when combining salaries. Both Denver and Seattle have minimum wages high enough for two workers to share a one-bedroom apartment and stay within budget. Albuquerque, Baltimore, Bridgeport, Portland, and Phoenix are other cities that offer affordable rental options for couples working on a minimum wage.
However, in most cities, two salaries are insufficient to afford rent. This leaves minimum wage workers few options for housing besides living with their families, adding another roommate, or relocating to rural areas.
It’s important to note that Wichita is the only city where the federal minimum wage is sufficient for two workers to afford rent. The other 16 cities all have minimum wages higher than the federal minimum wage, demonstrating how higher wages bring greater opportunity for accessible housing.
The Past and Future of Minimum Wages in America
At least 20 states plan to increase their minimum wages in 2026. Additionally, several cities have announced their own proposals to raise the minimum wage next year, including Denver, Minneapolis, and Portland. But that still leaves 30 states at their current level.
Although the minimum wage has not been a livable wage for decades, the gap between the actual wage and a necessary livable wage has widened dramatically. In 1990, for example, the median rent was $447 while the federal minimum wage was $3.80. At that time, minimum wage renters were just $4.80 short of being able to afford an apartment, a gap equivalent to roughly $11.93 in 2025 dollars. Today, however, minimum wage renters are $24 short.
History offers a contrast to this stagnation. The federal minimum wage was raised five times over the 16-year period from 1993 to 2009. Yet, in the subsequent sixteen-year period from 2009 to 2025, the federal minimum wage has not been raised once.
Looking ahead, workers need wages that better align with current price trends. Until salaries increase more rapidly, minimum wage workers will continue to face the difficult choice between housing and financial stability.
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