(JEFFERSON CITY) May 25, 2016 -- In order to afford a modest, two-bedroom apartment at Fair Market Rent in Missouri, renters need to earn $14.98 per hour. This is Missouri's 2016 Housing Wage, revealed in a national report released today. The report, Out of Reach 2016, was jointly released by the National Low Income Housing Coalition, a Washington, DC-based research and advocacy organization, and Empower Missouri, a state-level advocacy organization focusing on poverty issues.
Every year, Out of Reach reports on the Housing Wage for all states, counties, and metropolitan areas in the country. Nicole McKoy, St. Louis, co-chair of the Empower Missouri Affordable Housing and Homelessness Task Force, said, "This important report highlights the gap between what renters earn and what it costs to afford rent at fair market value. Our workforce needs higher wages and more affordable housing options."
The federal minimum wage has remained at $7.25 an hour without an increase since 2009, generating debate and calls to raise the wage both at the state and federal level. In no state, even those where the minimum wage has been set above the federal standard, can a minimum wage renter working a 40 hour work week afford a one-bedroom rental unit at the average Fair Market Rent. Working at the minimum wage of $7.65 in Missouri, a family must have two wage earners working full-time, or one earner working 78 hours per week, to afford a modest two-bedroom apartment.
The typical renter in Missouri earns $12.74, which is $2.24 less than the hourly wage needed to afford a modest unit. This calculation is based on the well-established formula that households cannot generally afford to pay more than 30% of their incomes for housing. Vickie Riddle, McKoy's co-chair, said, "No wonder so many Missourians face one or more spells of homelessness each year. Addressing this issue is important to the quality of life of all Missourians."
"The Out of Reach data reflect a grim reality across the nation. There is no place in the United States where a minimum wage worker can afford a two-bedroom apartment," said Diane Yentel, President and CEO of the National Low Income Housing Coalition. "We as a nation must respond by investing in affordable housing for the lowest income households in America. The new national Housing Trust Fund is one solution, but it will require many more resources to address the need."