Here’s The Wage You Need To Make In Minnesota To Afford A 2 Bedroom Apartment
The cost of everything is up. Rent has been going up for years, even before the current inflation crisis we are facing. The cost of living now is higher than it's been in years, and according to some housing advocates, the wages are not keeping pace.
The Minnesota Housing Partnership is a non-profit organization that advocates for equitable housing policy and provides data-informed research to help find solutions. They share information annually about what it costs to afford a place to live in Minnesota, while also highlighting the disparity among those people living in communities.
No More Than 30% Of Your Income Should Go To Rent
It's called Fair Market Rent, or FMR. You may have heard this already, but the amount your household pays for rent should not exceed 30%. Paying more than that can cause a burden on you being able to pay other costs.
Household Income Needed To Afford A Modest Two-Bedroom Apartment
According to the Minnesota Housing Partnership (MHP), an average modest two-bedroom apartment in Minnesota is $1,133 per month. Without going over the 30% of income threshold, a household must earn $3,885 monthly or $46,616 annually. That translates to $22.41 per hour for a single worker. This is an increase from last year's report where the wage was $21.78 per hour or $45,301 annually.
These numbers are for household income. If there is more than one person earning income it can be more attainable to reach this number with a decent-paying job. If you look at minimum wage jobs, it takes 2.2 full-time jobs per household to afford a two-bedroom apartment.
Housing Wage By County To Afford Two-Bedroom Apartment
St. Louis County's housing wage to afford the rent for a two-bedroom is between $17.01 - $21.00 per hour. That's also true for Carlton County. The Twin Cities Metro area is the highest, with a $21.01 - $25.56 housing wage.
You can read more from the MHP's 2022 report shared online or by following their Facebook page.
Low-income and households of color are impacted more by housing cost burden.
Learn more about what the MHP Investors Council is doing to address the rental issues for many in Minnesota by visiting mhponline.org.