Minimum wage workers can't afford to rent a 2-bedroom home
Minimum wage workers would have to earn three times the federal wage to rent a modest two-bedroom home anywhere in the country, according to a new report from the National Low Income Housing Coalition.
Workers would need $21.21 per hour to rent a two-bedroom home, and $17.14 for a one-bedroom. On average, renters earn $16.38 across the country, while the mandated federal minimum wage sits at $7.25.
The gap between income and rent is widening. Average income went down by 4%, while rent increased by 6% between 2007 and 2015, Washington Post reports.
Why this matters: Around 11.2 million families spend the majority of their paychecks on rent, and currently only one of every four is eligible for public subsidies. Under President Trump's budget plan, federal funding to the Department of Housing and Urban Development will be slashed by $6.2 billion — significantly reducing housing assitance programs and those programs aimed at helping lower-wage employees.