Tuesday, April 19, 2016

How Much does it really Cost?

Note to Readers: This is an archive post that was originally posted in April of 2010. I was going to see if it needed updated, sadly it didn't. 

So I thought I would post some interesting facts. The National Low-Income Housing Coalition just released a report on what the Real cost of housing, and what a real livable wage should be. Now they have a handy tool so you can see for your area, what you should be making to be living at an affordable level. I live in the State of Utah, so the numbers that are being used are for Utah check out the site to get the info for your State and City.

This information comes from the site for the NLIHC

In Utah, the Fair Market Rent (FMR) for a two-bedroom apartment is $768. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $2,560 monthly or $30,719 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $14.77.

In Utah, 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 81 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 Utah, the estimated mean (average) wage for a renter is $11.55 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 51 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 $674 in Utah. If SSI represents an individual's sole source of income, $202 in monthly rent is affordable, while the FMR for a one-bedroom is $639.

A unit is considered affordable if it costs no more than 30% of the renter's income.

Click here to see how they came up with the numbers.

After seeing these numbers, I can say with the facts backing up the statement. The Federal Minimum wage needs to have some serious increases.

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