MINNEAPOLIS (FOX 9) - A new report reveals the disparity between minimum wage and the cost of an average two-bedroom rental in different U.S. cities.
According to Out of Reach, in no state, metropolitan area, or county can a full-time minimum-wage worker afford a modest two-bedroom rental home, and these workers cannot afford modest one-bedroom apartments in 91% of U.S. counties.
According to the report, the average Minnesotan needs to earn an hourly wage of $22.41 and work full-time to afford a two-bedroom apartment. In Minnesota, the Fair Market Rent for a two-bedroom apartment is $1,165. And in order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $3,885 monthly or $46,616 annually.
In most of the Twin Cities metro, workers would need an hourly wage of $25.56, the data show. In the Rochester area, workers would need to make below the state average, at $21.04.
However, elsewhere in Minnesota isn't as expensive. In the Mankato area, renters would need to earn a minimum wage of $19.08 to afford a two-bedroom apartment. In Rice County and Le Sueur County, the so-called "housing wage" is $18.96 and $18.54, respectively. In the Duluth area, it's $18 and in Fargo-Moorhead, it's $16.52.
Minnesota's minimum wage is currently $10.33 an hour for large employers and $8.42 an hour for other state minimum wages. That being said, the minimum wage for large employers in Minneapolis is $15 an hour.
To view the full report on rental costs and minimum wage, click here.