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Out of ReachMinnesota 2017

The growing gap between

WAGES AND RENT

An annual report from

2 www.mhponline.org

Executive Summary

When families pay too much for rent, they’re forced to sacrifice to make ends meet — cutting back at the grocery store or delaying a trip to the doctor. Building on the annual report produced by the National Low Income Housing Coalition, Out of Reach Minnesota 2017 delves further into state, county and local trends to reveal that households in every corner of Minnesota are spending thousands of dollars more than they can afford each year just to pay the rent for a modest apartment.

Key findings in MHP's 2017 report include:

From 2016 to 2017, the amount a renter household needs to earn to afford a modest apartmeny (the state "housing wage") increased by 5 percent — a higher rate of change compared to the 3 percent increase from 2015 to 2016.

Minnesota has climbed to #21 on the list of most expensive states in the nation, up from #24 just five years ago, rising above states like Texas and Arizona.

To afford a two-bedroom apartment, the median-income* renter in Minnesota would need a 13 percent raise.

A full-time minimum wage earner can’t afford even a one-bedroom apartment in any of Minnesota’s 87 counties.

The lowest income households — those earning 30 percent or less of area median income — can afford a modest one-bedroom apartment in only four of Minnesota’s 87 counties. Even efficiencies are not affordable in 35 counties.

When rent is out of reach for those who are fully employed, our communities pay the price. We cannot afford to let housing costs continue to climb, while wages remain stagnant.

Fair Market Rent: The federal government standard for a “fairly” priced apartment. It is calculated as the 40th percentile of gross rents for typical, non-substandard rental units in a local housing market. In this report, we use the term “modest” one- or two-bedroom apartments to denote fair market rent.

Housing Wage: The hourly wage workers need to earn to afford rent without spending 30 percent or more of their income.

Affordability: Any household that spends more than 30 percent of their income on housing will likely have to sacrifice on daily necessities, like food and medicine.

KEY TERMS IN THIS REPORT

30

OVERALL WAGES

Rent

* A note on average vs median income: Average income calculations reflect the entire range of incomes within a certain area, which can skew these calculations toward outliers. Median income calculations reflect the middle-point of a range of incomes for a certain area, and are less likely to be skewed by outliers. Because there is significant income variation in most communities, with clusters of extremely high- and low-income households at either end of the spectrum, median income calculations represent a more conservative estimate of a typical household's income. In this report, average renter wage comes average weekly wages from the 2015 quarterly census of employment and wages — and is adjusted by the national ratio of renter household income to total household income. Median renter wages are derived from ACS data and adjusted to 2017 dollars.

3www.mhponline.org

Nearly 30 percent of Minnesota residents — more than 600,000 households — live in a rental unit.

From 2000 to 2015, the state gained nearly 120,000 renter households, and the percentage of Minnesotans that are renters rose by 11 percent — so the high cost of rental housing affects a growing number of Minnesotans throughout the state.

Minnesota ranks #21 in the nation for the highest wages required to afford a modest two-bedroom apartment.

The wage required to afford a modest two- bedroom apartment in Minnesota is more expensive than 29 other states — including $2.50 higher than Wisconsin, and $4 higher than Iowa. Since 2012, MN has climbed from #24 to #21 on the list of most expensive states.

While households’ earnings have remained stagnant or declined, the housing wage has risen sharply.

Adjusting for inflation, Minnesota's housing wage — the wage necessary to afford a two-bedroom apartment — has jumped by nearly 18 percent over the past decade alone. Meanwhile, as housing costs have climbed, median renter income declined 11 percent from 2000 to 2015.

Rise in the housing wage since 2007

18 percent11 percent increase in renters since 2000

Minnesota renter households don’t earn nearly enough to pay the rent — and make ends meet.

The average wage ($14.28) for a renter in Minnesota isn’t enough to afford a modest two-bedroom apartment in any Minnesota county, and enough to afford a one-bedroom apartment in only 26 Minnesota counties (less than one-third of all counties). On average, a Minnesota renter has to pay $2,700 more than they can afford each year for a modest two-bedroom apartment.

For those earning minimum wage ($9.50), even a one-bedroom apartment is out of reach in all Minnesota counties. To be able to afford a one bedroom apartment, a minimum wage worker must work 62 hour per week; to afford a two-bedroom apartment he or she must work 78 hours per week.

WAGES can’t cover RENT

U.S.MN

$18.60$21.21

$16.36

ND WIIA SD

$16.11$14.57 $14.12

4 www.mhponline.org

2-BR RENT: $967

Affordable to RENTER AVERAGE INCOME Affordable

to 30 PERCENT of STATE MEDIAN

Affordable to full-time MINIMUM

WAGE EARNER

Affordable to SSI

RECIPIENT

$856

Affordable to full-time

RENTER MEDIAN INCOME

1-BR RENT: $763

$611

$742

$494

$245

WHAT RENTERS CAN AFFORD Many renter households don't earn enough to afford the cost of rent

$722 / mo$8,664/ yr

Cost beyond what household can afford for a 1 BEDROOMCost beyond what household can afford for a 2 BEDROOM

WHAT RENTERS HAVE TO PAYRenters must pay hundreds of dollars more per month and thousands more per year than they can afford on rent.

$518 / mo$6,216 / yr

$473 / mo$5,676 / yr

$269 / mo$3,288 / yr

$356 / mo$4,272 / yr

$152 / mo$1,824 / yr

$225 / mo$2,700 / yr

$21 / mo$252 / yr

$111 / mo$1,332 / yr

THE COST OF RENT, WHAT RENTERS CAN AFFORD, AND HOW MUCH THEY SACRIFICE TO MAKE ENDS MEET

5www.mhponline.org

62 HOURS for 1 bedroom

78 HOURS for 2 bedroom

Hours per week at minimum wage employee must work

Annual income of MN top jobs1 compared to income necessary to afford rent

Registered nurse

Personal care aid

Retail sales

Cashier Food prep& serving

2 bedroom: $38,700

1 bedroom: $30,505

$72,700

$23,400 $21,400 $19,600 $18,900

Minimum wage earners — and most employees in Minnesota’s most in-demand jobs — don’t earn enough to afford rent.

$15 / hour

$9.50 / hour

150

120

90

60

30

36

5744

7056

8879

125

Hours of work per week required to afford rent at minimum wage

Studio 1 BR 2 BR 3 BR

MINNEAPOLIS / ST. PAUL SPOTLIGHT

Campaigns across the nation, including Minneapolis, are pushing for a raise in the minimum wage to $15 per hour. Here’s how many fewer hours per week a minimum wage worker would need to labor to afford rent in the Minneapolis / St. Paul metro area if minimum wage were $15 per hour rather than the current $9.50 per hour.

1 jobs with the highest projected growth from 2014 to 2024 Source: MN Dept of Employment and Economic Development

6 www.mhponline.org

Zip: 55406$20.00

Zip: 55106$18.65

Zip: 55407$20.00

Zip: 55119$19.42

Zip: 55414$20.00

Zip: 55104$18.46

Zip: 55108 $20.00

Zip: 55417$20.19

Zip: 55116$19.42

Zip: 55418$20.58

Zip: 55117$18.85

Zip: 55419$22.31

Zip: 55107$19.23

Zip: 55411$23.08

Zip: 55413$21.54

Zip: 55105$19.62

Zip: 55412$21.92

Zip: 55102$18.46

Zip: 55101$22.88

55405$18.85

Zip: 55408$18.85

Zip: 5510317.12

55410$23.85

Zip: 55409$21.92

Zip: 55404$17.31

Zip: 55114$22.50

Zip: 55430$20.96

Zip: 55403$18.46

55416$23.08

55401$30.19

55415$14.81

55455$21.35

55454$17.12

55402$25.96

Housing Wage for a two bedroom apartment by zip code Hourly Wage Needed$14.81 - $17.88

$17.89 - $20.58

$20.59 - $24.42

$24.43 - $30.19

Zip: 55406$20.00

Zip: 55106$18.65

Zip: 55407$20.00

Zip: 55119$19.42

Zip: 55414$20.00

Zip: 55104$18.46

Zip: 55108 $20.00

Zip: 55417$20.19

Zip: 55116$19.42

Zip: 55418$20.58

Zip: 55117$18.85

Zip: 55419$22.31

Zip: 55107$19.23

Zip: 55411$23.08

Zip: 55413$21.54

Zip: 55105$19.62

Zip: 55412$21.92

Zip: 55102$18.46

Zip: 55101$22.88

55405$18.85

Zip: 55408$18.85

Zip: 5510317.12

55410$23.85

Zip: 55409$21.92

Zip: 55404$17.31

Zip: 55114$22.50

Zip: 55430$20.96

Zip: 55403$18.46

55416$23.08

55401$30.19

55415$14.81

55455$21.35

55454$17.12

55402$25.96

Housing Wage for a two bedroom apartment by zip code Hourly Wage Needed$14.81 - $17.88

$17.89 - $20.58

$20.59 - $24.42

$24.43 - $30.19

MINNEAPOLIS / ST. PAUL SPOTLIGHT: WAGE NEEDED TO AFFORD A MODEST TWO-BEDROOM APARTMENT BY ZIP CODE

The housing wage for zip codes within the municipal borders of Minneapolis and St. Paul are higher than the region's 1-bedroom housing wage of $16.58. This is because many suburban areas across the region typically have lower housing costs than central city areas.

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Zip: 55116$15.38

Zip: 55417$15.96

Zip: 55407$15.96

Zip: 55409$17.50

Zip: 55408$15.00

Zip: 55416$18.27

55403$14.62

55405$15.00

55404$13.65

Zip:55101$18.27

55454$13.65

Zip: 55102$14.62

Zip: 55414$15.96

Zip: 55106$14.81

Zip: 55117$15.00

Zip: 55119$15.38

Zip: 55104$14.62

Zip: 55406$15.96

Zip: 55418$16.35

Zip: 55412$17.5

Zip: 55419$17.69

Zip: 55107$15.19

Zip: 55411$18.27 Zip: 55413

$17.12

Zip: 55105$15.58

Zip: 55103$13.65

Zip: 55410$19.04

Zip: 55430$16.73

Zip: 55114$17.88

55401$24.04

55415$11.73

55455$16.92

55402$20.58 Zip: 55108 $15.96

Minneapolis/ St. Paul Spotlight: Wage Needed to Afford a Modest One-Bedroom Apartment by Zip Code

Hourly Wage Needed$11.73 - $14.23

$14.24 - $16.35

$16.36 - $19.42

$19.43 - $24.04

The housing wage for zip codes within the municipal borders of Minneapolis and St. Paul are higher than the region's 1-bedroom housing wage of $16.58. This is because many suburban areas across the region typically have lower housing costs than central city areas.

$

MINNEAPOLIS / ST. PAUL SPOTLIGHT: WAGE NEEDED TO AFFORD A MODEST ONE-BEDROOM APARTMENT BY ZIP CODE

8 www.mhponline.org

MINNEAPOLIS / ST. PAUL SPOTLIGHT

In every county of the seven-county metro area, median-income White households can easily afford the hourly wage needed to rent a two-bedroom apartment — but that’s not true for communities of color. For instance, in Hennepin County, a median-income White household earns $36 per hour, while a median-income Black household earns only $14 per hour — significantly below the wage necessary to afford even a one-bedroom apartment. In fact, median-income Black, Native American, and Hispanic households are all below the wages necessary to afford a modest two-bedroom apartment in Hennepin or Ramsey counties.

BLACK

Hennepin CountyRamsey County

1BR$16.58

2BR$20.88

WHITE

ASIAN

NATIVE AMERICAN

HISPANIC

$35.63$30.77

$13.57$13.37

$14.09$17.53

$20.47$18.05

$35.53$22.62

$32.11 $30.74

$20.30 $16.08 $14.57

BLACK NATIVE AMERICAN

HISPANIC WHITE ASIAN

$18.60

2 BRHOUSING WAGE

MINNESOTA: MEDIAN WAGES BY RACE2 Communities of color are disproportionately impacted by wide gaps between wages and rent.

The growing gap between wages and rent has a disproportionate impact on communities of color. Statewide, the median wages earned by Black and Native American workers is half that of white and Asian workers2. In the Twin Cities, these disparities are particularly stark. For instance, in Hennepin and Ramsey counties, the median income for a household of color is, on average, 40 percent less than the median income for a white household.

2 Median wages are for all households; not disaggregated by renters and owner households

9www.mhponline.org

MINNESOTA: MEDIAN WAGES BY RACE2

The housing wage is what a Minnesota workers need to earn to afford rent without paying more than 30 percent of their income on housing. In 2017, the income needed to afford the a modest two-bedroom apartment in the state of Minnesota is $38,700 per year — nearly $4,500 more than the median renter earns per year ($34,250). With housing wage at $18.60 per hour for a modest two-bedroom apartment and $14.67 for a modest one-bedroom apartment, rent is out of reach for workers in the vast majority of Minnesota counties.

Saint Louis

Cass

Itasca

LakePolk

Beltrami

Aitkin

Pine

Cook

Koochiching

Otter Tail

Clay

Roseau

Marshall

Becker

Todd

Stearns

Kittson

Lyon

Swift

Pope

Morrison

Renville

Rice

Carlton

Wilkin

Hubbard

Martin

Norman

Fillmore

Wright

Grant

Nobles

Murray

MowerRock

Sibley

Brown

Redwood

Jackson

Douglas

Meeker

Goodhue

Isanti

Winona

Dakota

Faribault Freeborn

OlmstedBlue Earth

Stevens

Scott

Traverse

Anoka

Steele

Houston

Dodge

McLeod

Hennepin

WabashaNicollet

Chippewa

Benton

Carver

Pennington

Red Lake

Yellow Medicine

Sherburne

Crow Wing

Lake of the Woods

Clearwater

Kandiyohi

Lincoln

Mille Lacs

Wadena

Kanabec

Lac Qui Parle

Waseca

Le Sueur

Big Stone Chisago

Cottonwood

Mahnomen

Pipestone

Watonwan

Washington

Ramsey

Housing Wage, Two Bedroom$13.10 - $13.58

$13.59 - $14.54

$14.55 - $15.65

$15.66 - $18.00

$18.01 - $20.88

Hourly "Housing Wage" Needed to Afford a 2-Bedroom"HOUSING WAGE" — WAGE NECESSARY TO AFFORD A

TWO-BEDROOM APARTMENT

From 2016 to 2017, the state housing wage increased by 5 percent — a higher rate of change from the 3 percent increase from 2015 to 2016.

Compared to the state average of $18.60, the housing wage in non-metro areas is nearly $5 less per hour at $13.86 for a two-bedroom apartment.

The highest housing wage in the state is located in the counties within the Minneapolis / St. Paul metro area, at $20.88 per hour — or $43,440 annually — to afford a modest two-bedroom apartment.

10 www.mhponline.org

Across the state, the housing wage has increased significantly over the past decade. In 2007, the housing wage for a modest two-bedroom apartment in Minnesota was $14.69. Ten years later, the wage has risen 27 percent to $18.60. Even adjusted for inflation, that’s an increase of nearly 18 percent. From 2016 to 2017, the state housing wage increased by 5 percent — a higher rate of change than the 3 percent increase from 2015 to 2016.

Saint Louis

Cass

Itasca

LakePolk

Beltrami

Aitkin

Pine

Cook

Koochiching

Otter Tail

Clay

Roseau

Marshall

Becker

Todd

Stearns

Kittson

Lyon

Swift

Pope

Morrison

Renville

Rice

Carlton

Wilkin

Hubbard

Martin

Norman

Fillmore

Wright

Grant

Nobles

Murray

MowerRock

Sibley

Brown

Redwood

Jackson

Douglas

Meeker

Goodhue

Isanti

Winona

Dakota

Faribault Freeborn

OlmstedBlue Earth

Stevens

Scott

Traverse

Anoka

Steele

Houston

Dodge

McLeod

Hennepin

WabashaNicollet

Chippewa

Benton

Carver

Pennington

Red Lake

Yellow Medicine

Sherburne

Crow Wing

Lake of the Woods

Clearwater

Kandiyohi

Lincoln

Mille Lacs

Wadena

Kanabec

Lac Qui Parle

Waseca

Le Sueur

Big Stone Chisago

Cottonwood

Mahnomen

Pipestone

Watonwan

Washington

Ramsey

Change in housing wage for a two-bedroom apartment at fair market rent, from 2007 to 2017

Percentage Change

5% - 15%

16% - 20%

21% - 25%

26% - 30%

31% - 45%

INCREASE IN HOUSING WAGE FROM 2007 TO 2017

Within Minnesota's major metro areas that were included in the 2007 Out of Reach report — Duluth; Fargo; Grand Forks; La Crosse; Minneapolis/St. Paul; Rochester; and St Cloud — the increase in the housing wage for a two bedroom apartment has been as high as 45 percent in Grand Forks, 29 percent in Fargo and 28 percent in Minneapolis / St. Paul.

Non-metro areas in Minnesota have experienced a more modest increase of 20 percent for housing wage over the past 10 years.

At the county level, Polk County has experienced the steepest increase in two-bedroom housing wage, jumping 45 percent since 2007. In this county, the hourly wage needed has risen from $11.33 to $16.42.

not adjusted for inflation

11www.mhponline.org

In 69 percent of Minnesota counties, the median-income renter can’t afford rent for a two-bedroom apartment. At the state level, there is a more than $100 monthly gap — or $1,200 annual gap — between median renter income and what’s needed to afford a two-bedroom apartment. In non-metro areas the gap decreases, but only to $45 per month or $540 per year.

Median renter income is enough to cover the cost of a modest one-bedroom apartment in the vast majority of counties across the state. But in nine counties a modest one-bedroom apartment is not affordable: St Louis (-$8 per month), Stevens (-$16), Blue Earth (-$30), Cook (-$38), Koochiching (-$42), Ramsey (-$45), Polk (-$46), Chisago (-$93), Big Stone (-$167).

Saint Louis

Cass

Itasca

LakePolk

Beltrami

Aitkin

Pine

Cook

Koochiching

Otter Tail

Clay

Roseau

Marshall

Becker

Todd

Stearns

Kittson

Lyon

Swift

Pope

Morrison

Renville

Rice

Carlton

Wilkin

Hubbard

Martin

Norman

Fillmore

Wright

Grant

Nobles

Murray

MowerRock

Sibley

Brown

Redwood

Jackson

Douglas

Meeker

Goodhue

Isanti

Winona

Dakota

Faribault Freeborn

OlmstedBlue Earth

Stevens

Scott

Traverse

Anoka

Steele

Houston

Dodge

McLeod

Hennepin

WabashaNicollet

Chippewa

Benton

Carver

Pennington

Red Lake

Yellow Medicine

Sherburne

Crow Wing

Lake of the Woods

Clearwater

Kandiyohi

Lincoln

Mille Lacs

Wadena

Kanabec

Lac Qui Parle

Waseca

Le Sueur

Big Stone Chisago

Cottonwood

Mahnomen

Pipestone

Watonwan

Washington

Ramsey

Gap($317) - ($207)

($206) - ($98)

($97) - $0

$1 - $121

$122 - $231

Gap by county between rent affordable at median renter income and fair market rent for a two bedroom apartmentGAP BETWEEN RENT FOR TWO-BEDROOM APARTMENT AND WHAT MEDIAN-INCOME RENTER CAN AFFORD

Grand Forks metro area has the highest gap of all the major metro areas in Minnesota, with a monthly difference of $246 between renter median income and what’s needed to afford a two-bedroom apartment. That means those renter households must spend $9,850 more per year than they can afford — the greatest disparity for major metropolitan areas in the state.

In 29 counties, the gap between renter median income and rent for a two-bedroom apartment exceeds $100; the largest gap is in Chisago County (-$317 per month) followed closely by Ramsey County (-$269 per month).

There are three counties where median income renters must spend from $10,000-$12,000 more per year than they can afford for a modest two-bedroom apartment: Big Stone, Chisago, and Ramsey counties.


Even for median-income renters, housing costs far exceed earnings. For the median-income renter household in Minnesota, an affordable rent — one that does not exceed 30 percent of a household’s monthly income — is $856 per month. That’s nearly $100 less per month than is required to afford a modest two-bedroom apartment ($967). At the state level, Minnesota median-income renter households would need a 13 percent raise to afford rent for a modest two-bedroom apartment.

Saint Louis

Cass

Itasca

LakePolk

Beltrami

Aitkin

Pine

Cook

Koochiching

Otter Tail

Clay

Roseau

Marshall

Becker

Todd

Stearns

Kittson

Lyon

Swift

Pope

Morrison

Renville

Rice

Carlton

Wilkin

Hubbard

Martin

Norman

Fillmore

Wright

Grant

Nobles

Murray

MowerRock

Sibley

Brown

Redwood

Jackson

Douglas

Meeker

Goodhue

Isanti

Winona

Dakota

Faribault Freeborn

OlmstedBlue Earth

Stevens

Scott

Traverse

Anoka

Steele

Houston

Dodge

McLeod

Hennepin

WabashaNicollet

Chippewa

Benton

Carver

Pennington

Red Lake

Yellow Medicine

Sherburne

Crow Wing

Lake of the Woods

Clearwater

Kandiyohi

Lincoln

Mille Lacs

Wadena

Kanabec

Lac Qui Parle

Waseca

Le Sueur

Big Stone Chisago

Cottonwood

Mahnomen

Pipestone

Watonwan

Washington

Ramsey

Affordable Rent$414 - $553

$554 - $652

$653 - $763

$764 - $912

$913 - $1,122

Apartment Cost Affordable for a Median Income RenterRENT AFFORDABLE TO MEDIAN-INCOME RENTER

Median-income renters in Washington County can afford the highest rent in the state at $1,122 per month.

Median-income renters in Big Stone County can only afford $414 per month, the lowest level in the state.

In contrast to the $856 affordable to the median-income renter at the statewide level, the median-income renter household in non-metro Minnesota can afford far less — just $675 per month.

The highest median-renter incomes are isolated to four counties of the Twin Cities region, with the highest in Dakota, Carver, Scott and Washington counties.

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The lowest income households in Minnesota can only afford $611 per month in rent. Statewide, there is a $152 monthly gap between what a household at 30 percent of area median income earns and what would be required to pay for a modest one-bedroom apartment. Even efficiencies are out of reach; a household would need to earn nearly $200 more per year to afford a modest zero-bedroom apartment.

Saint Louis

Cass

Itasca

LakePolk

Beltrami

Aitkin

Pine

Cook

Koochiching

Otter Tail

Clay

Roseau

Marshall

Becker

Todd

Stearns

Kittson

Lyon

Swift

Pope

Morrison

Renville

Rice

Carlton

Wilkin

Hubbard

Martin

Norman

Fillmore

Wright

Grant

Nobles

Murray

MowerRock

Sibley

Brown

Redwood

Jackson

Douglas

Meeker

Goodhue

Isanti

Winona

Dakota

Faribault Freeborn

OlmstedBlue Earth

Stevens

Scott

Traverse

Anoka

Steele

Houston

Dodge

McLeod

Hennepin

WabashaNicollet

Chippewa

Benton

Carver

Pennington

Red Lake

Yellow Medicine

Sherburne

Crow Wing

Lake of the Woods

Clearwater

Kandiyohi

Lincoln

Mille Lacs

Wadena

Kanabec

Lac Qui Parle

Waseca

Le Sueur

Big Stone Chisago

Cottonwood

Mahnomen

Pipestone

Watonwan

Washington

Ramsey

Dollar Gap

($219) - ($164)

($163) - ($111)

($110) - ($51)

($50) - $0

$1 - $36

Gap between those at 30 percent of Area Median Income and income needed to afford a one bedroom apartment at Fair Market RentGAP BETWEEN RENT FOR ONE-BEDROOM APARTMENT AND WHAT LOWEST INCOME MINNESOTANS CAN AFFORD

An individual earning 30 percent of area median income can afford a modest one-bedroom apartment in only four of Minnesota’s 87 counties: Waseca, Sibley, Kittson, and Lyon.

In 29 counties, the monthly gap exceeds $100. Mille Lacs County has the largest gap, with the lowest income residents facing a $219 monthly deficit to pay rent on a one-bedroom apartment.

In all of the major metro areas, rent for a one-bedroom apartment is too expensive for a household earning 30 percent of the area median income. In Minneapolis / St. Paul the gap is $184 per month, or 2,200 per year.

HUD considers households earning less than 30 percent of area median income "extremely low income"


A minimum wage earner in Minnesota must work more than one full-time job in every county in the state to be able to afford rent for even a one-bedroom apartment. A minimum wage earner would have to work more than 40 hours per week to afford even a one-bedroom apartment in all Minnesota counties. Statewide, a one-bedroom apartment costs $269 more per month than a minimum wage earner can afford.

Because Minnesota has increased its minimum wage above the federal minimum wage, there is some good news. In 2007, when the minimum wage in Minnesota was $6.15, it took 78 hours per week to afford a one-bedroom apartment. With minimum wage rising to $9.50, that has dropped to 62 hours per week — a decrease of 21 percent. For a two-bedroom apartment the hours required at minimum wage to afford rent dropped 19 percent.

Saint Louis

Cass

Itasca

LakePolk

Beltrami

Aitkin

Pine

Cook

Koochiching

Otter Tail

Clay

Roseau

Marshall

Becker

Todd

Stearns

Kittson

Lyon

Swift

Pope

Morrison

Renville

Rice

Carlton

Wilkin

Hubbard

Martin

Norman

Fillmore

Wright

Grant

Nobles

Murray

MowerRock

Sibley

Brown

Redwood

Jackson

Douglas

Meeker

Goodhue

Isanti

Winona

Dakota

Faribault Freeborn

OlmstedBlue Earth

Stevens

Scott

Traverse

Anoka

Steele

Houston

Dodge

McLeod

Hennepin

WabashaNicollet

Chippewa

Benton

Carver

Pennington

Red Lake

Yellow Medicine

Sherburne

Crow Wing

Lake of the Woods

Clearwater

Kandiyohi

Lincoln

Mille Lacs

Wadena

Kanabec

Lac Qui Parle

Waseca

Le Sueur

Big Stone Chisago

Cottonwood

Mahnomen

Pipestone

Watonwan

Washington

Ramsey

Work Hours/ Week41 - 42

43 - 45

46 - 50

51 - 58

59 - 70

Hours at Minimum Wage Needed to Afford a 1-Bedroom ApartmentHOURS AT MINIMUM WAGE TO AFFORD 1 BEDROOM APARTMENT

In non-metro areas, minimum wage workers must work 45 hours per week to afford a modest one-bedroom apartment, and 58 hours per week for a two-bedroom.

Minimum wage workers in the Twin Cities metropolitan area must work 70 hours per week to afford a modest one-bedroom apartment and 88 hours per week for a two-bedroom — the highest number of hours for major metropolitan areas in the state.

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OUT OF REACH 2017 | NATIONAL LOW INCOME HOUSING COALITION 129

Minnesota RENTER HOUSEHOLDS

Renter households (2011-2015)

% of total households

(2011-2015)

AREA MEDIAN INCOME (AMI)

2 BRFMR

Annual income needed

to afford2 BR FMR

Annual AMI

Monthly rentaffordable

at AMI30%

of AMI

Monthly rent

affordableat 30%of AMI

Monthly rent

affordableat mean

renter wage3 5

1

HOUSING COSTS

Estimated hourly mean renter wage

(2017)

Full-time jobs at minimum wage

needed to afford 2 BR FMR

Hourly wage necessary to afford 2 BR

FMR

Full-time jobs at mean renter

wage needed to afford 2 BR FMR

FY17 HOUSING WAGE

2 4

$721 $28,836 24%$13.86 $9.601.5 1.4$499Combined Nonmetro Areas $64,773 $19,432 $486 118,972$1,619

Minnesota $2,036$967 $38,697 28%$18.60 $14.28 1.3$742$611 602,1272.0 $81,450 $24,435

Counties

Aitkin County 1,339$54,200 $407$1,355$706 $28,240 18%$16,260$13.58 $8.851.4 1.5$460

Anoka County 24,955$90,400 $678$2,260$1,086 $43,440 20%$27,120$20.88 $13.042.2 1.6$678

Becker County 2,829$63,600 $477$1,590$682 $27,280 21%$19,080$13.12 $8.911.4 1.5$463

Beltrami County 5,178$57,100 $428$1,428$730 $29,200 31%$17,130$14.04 $9.691.5 1.4$504

Benton County 4,649$70,000 $525$1,750$740 $29,600 30%$21,000$14.23 $8.741.5 1.6$454

Metropolitan Areas

Duluth MSA $67,200 $504$1,680$771 $30,840 28%$20,160$14.83 $9.901.6 1.5$51527,308

Fargo MSA $75,200 $564$1,880$767 $30,680 30%$22,560$14.75 $7.451.6 2.0$3886,758

Fillmore County HMFA $68,100 $511$1,703$681 $27,240 22%$20,430$13.10 $7.351.4 1.8$3821,849

Grand Forks MSA $66,500 $499$1,663$854 $34,160 28%$19,950$16.42 $7.801.7 2.1$4053,510

La Crosse-Onalaska MSA $72,000 $540$1,800$814 $32,560 19%$21,600$15.65 $6.821.6 2.3$3551,521

Le Sueur County HMFA $73,300 $550$1,833$745 $29,800 19%$21,990$14.33 $10.161.5 1.4$5282,006

Mankato-North Mankato MSA $78,000 $585$1,950$853 $34,120 33%$23,400$16.40 $10.001.7 1.6$52012,210

Mille Lacs County HMFA $60,800 $456$1,520$844 $33,760 26%$18,240$16.23 $8.851.7 1.8$4602,641

Minneapolis-St. Paul-Bloomington HMFA $90,400 $678$2,260$1,086 $43,440 30%$27,120$20.88 $16.322.2 1.3$849384,053

Rochester HMFA $88,600 $665$2,215$936 $37,440 25%$26,580$18.00 $13.911.9 1.3$72316,498

Sibley County HMFA $69,800 $524$1,745$694 $27,760 21%$20,940$13.35 $11.081.4 1.2$5761,282

St. Cloud MSA $70,000 $525$1,750$740 $29,600 30%$21,000$14.23 $11.211.5 1.3$58321,851

Wabasha County HMFA $70,000 $525$1,750$771 $30,840 19%$21,000$14.83 $8.861.6 1.7$4601,668

FMR=Fiar Market Rent (HUD, 1999)

5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.

1: BR = Bedroom

3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix B. 4: AMI = Fiscal Year 2017 Area Median Income

2: FMR = Fiscal Year 2017 Fair Market Rent.






(2011-2015)


2 BRFMR


to afford2 BR FMR

Annual AMI


at AMI30%

of AMI

Monthly rent


Monthly rent

affordableat mean

renter wage3 5

1

HOUSING COSTS


(2017)




FMR



FY17 HOUSING WAGE

2 4

Big Stone County 479$62,400 $468$1,560$681 $27,240 21%$18,720$13.10 $6.161.4 2.1$320

Blue Earth County 8,795$78,000 $585$1,950$853 $34,120 35%$23,400$16.40 $9.851.7 1.7$512

Brown County 2,377$67,900 $509$1,698$681 $27,240 22%$20,370$13.10 $9.501.4 1.4$494

Carlton County 2,858$67,200 $504$1,680$771 $30,840 21%$20,160$14.83 $9.491.6 1.6$493

Carver County 6,767$90,400 $678$2,260$1,086 $43,440 20%$27,120$20.88 $12.652.2 1.7$658

Cass County 2,472$55,500 $416$1,388$726 $29,040 19%$16,650$13.96 $6.991.5 2.0$363

Chippewa County 1,494$67,500 $506$1,688$681 $27,240 30%$20,250$13.10 $11.071.4 1.2$576

Chisago County 2,980$90,400 $678$2,260$1,086 $43,440 15%$27,120$20.88 $8.462.2 2.5$440

Clay County 6,758$75,200 $564$1,880$767 $30,680 30%$22,560$14.75 $7.451.6 2.0$388

Clearwater County 751$55,600 $417$1,390$681 $27,240 22%$16,680$13.10 $10.671.4 1.2$555

Cook County 697$65,400 $491$1,635$768 $30,720 26%$19,620$14.77 $5.841.6 2.5$303

Cottonwood County 1,020$57,100 $428$1,428$681 $27,240 21%$17,130$13.10 $8.041.4 1.6$418

Crow Wing County 6,518$62,500 $469$1,563$788 $31,520 25%$18,750$15.15 $9.701.6 1.6$504

Dakota County 39,515$90,400 $678$2,260$1,086 $43,440 25%$27,120$20.88 $13.852.2 1.5$720

Dodge County 1,295$88,600 $665$2,215$936 $37,440 17%$26,580$18.00 $10.601.9 1.7$551

Douglas County 3,687$68,800 $516$1,720$745 $29,800 24%$20,640$14.33 $10.091.5 1.4$525

Faribault County 1,477$59,400 $446$1,485$681 $27,240 23%$17,820$13.10 $11.571.4 1.1$602

Fillmore County 1,849$68,100 $511$1,703$681 $27,240 22%$20,430$13.10 $7.351.4 1.8$382

Freeborn County 3,068$60,800 $456$1,520$681 $27,240 24%$18,240$13.10 $11.021.4 1.2$573

Goodhue County 4,547$75,500 $566$1,888$792 $31,680 24%$22,650$15.23 $10.891.6 1.4$566

Grant County 499$62,500 $469$1,563$681 $27,240 20%$18,750$13.10 $8.041.4 1.6$418

Hennepin County 182,801$90,400 $678$2,260$1,086 $43,440 37%$27,120$20.88 $18.572.2 1.1$966

Houston County 1,521$72,000 $540$1,800$814 $32,560 19%$21,600$15.65 $6.821.6 2.3$355

Hubbard County 1,638$58,900 $442$1,473$681 $27,240 19%$17,670$13.10 $9.341.4 1.4$486

Isanti County 2,691$90,400 $678$2,260$1,086 $43,440 19%$27,120$20.88 $10.482.2 2.0$545

Itasca County 3,889$58,500 $439$1,463$740 $29,600 21%$17,550$14.23 $10.151.5 1.4$528



1: BR = Bedroom



17www.mhponline.org





(2011-2015)


2 BRFMR


to afford2 BR FMR

Annual AMI


at AMI30%

of AMI

Monthly rent


Monthly rent

affordableat mean

renter wage3 5

1

HOUSING COSTS


(2017)




FMR



FY17 HOUSING WAGE

2 4

Jackson County 1,024$66,200 $497$1,655$681 $27,240 24%$19,860$13.10 $10.671.4 1.2$555

Kanabec County 1,217$56,500 $424$1,413$748 $29,920 20%$16,950$14.38 $9.501.5 1.5$494

Kandiyohi County 4,576$66,600 $500$1,665$692 $27,680 27%$19,980$13.31 $8.261.4 1.6$429

Kittson County 367$68,900 $517$1,723$681 $27,240 19%$20,670$13.10 $9.131.4 1.4$475

Koochiching County 1,272$60,200 $452$1,505$681 $27,240 22%$18,060$13.10 $8.181.4 1.6$426

Lac qui Parle County 597$63,400 $476$1,585$681 $27,240 19%$19,020$13.10 $9.691.4 1.4$504

Lake County 1,025$64,900 $487$1,623$726 $29,040 20%$19,470$13.96 $11.361.5 1.2$591

Lake of the Woods County 236$55,400 $416$1,385$681 $27,240 15%$16,620$13.10 $7.911.4 1.7$411

Le Sueur County 2,006$73,300 $550$1,833$745 $29,800 19%$21,990$14.33 $10.161.5 1.4$528

Lincoln County 517$65,700 $493$1,643$681 $27,240 21%$19,710$13.10 $8.881.4 1.5$462

Lyon County 3,212$73,100 $548$1,828$681 $27,240 32%$21,930$13.10 $10.161.4 1.3$528

McLeod County 3,520$70,600 $530$1,765$687 $27,480 24%$21,180$13.21 $10.641.4 1.2$553

Mahnomen County 533$46,000 $345$1,150$681 $27,240 27%$13,800$13.10 $8.891.4 1.5$462

Marshall County 775$68,300 $512$1,708$681 $27,240 19%$20,490$13.10 $11.051.4 1.2$575

Martin County 2,318$64,400 $483$1,610$681 $27,240 26%$19,320$13.10 $9.751.4 1.3$507

Meeker County 1,824$67,300 $505$1,683$742 $29,680 20%$20,190$14.27 $8.231.5 1.7$428

Mille Lacs County 2,641$60,800 $456$1,520$844 $33,760 26%$18,240$16.23 $8.851.7 1.8$460

Morrison County 2,716$62,900 $472$1,573$681 $27,240 20%$18,870$13.10 $7.891.4 1.7$410

Mower County 4,330$65,400 $491$1,635$756 $30,240 28%$19,620$14.54 $11.541.5 1.3$600

Murray County 699$69,600 $522$1,740$681 $27,240 19%$20,880$13.10 $10.961.4 1.2$570

Nicollet County 3,415$78,000 $585$1,950$853 $34,120 27%$23,400$16.40 $10.421.7 1.6$542

Nobles County 2,186$61,700 $463$1,543$681 $27,240 28%$18,510$13.10 $11.931.4 1.1$621

Norman County 527$61,300 $460$1,533$681 $27,240 19%$18,390$13.10 $9.981.4 1.3$519

Olmsted County 15,203$88,600 $665$2,215$936 $37,440 26%$26,580$18.00 $14.091.9 1.3$733

Otter Tail County 5,169$65,000 $488$1,625$681 $27,240 21%$19,500$13.10 $7.951.4 1.6$413

Pennington County 1,542$66,900 $502$1,673$701 $28,040 26%$20,070$13.48 $10.761.4 1.3$560



1: BR = Bedroom








(2011-2015)


2 BRFMR


to afford2 BR FMR

Annual AMI


at AMI30%

of AMI

Monthly rent


Monthly rent

affordableat mean

renter wage3 5

1

HOUSING COSTS


(2017)




FMR



FY17 HOUSING WAGE

2 4

Pine County 2,486$56,500 $424$1,413$785 $31,400 22%$16,950$15.10 $6.961.6 2.2$362

Pipestone County 1,020$59,400 $446$1,485$681 $27,240 26%$17,820$13.10 $8.121.4 1.6$422

Polk County 3,510$66,500 $499$1,663$854 $34,160 28%$19,950$16.42 $7.801.7 2.1$405

Pope County 956$67,800 $509$1,695$706 $28,240 20%$20,340$13.58 $11.551.4 1.2$601

Ramsey County 84,740$90,400 $678$2,260$1,086 $43,440 41%$27,120$20.88 $16.712.2 1.2$869

Red Lake County 292$65,100 $488$1,628$681 $27,240 18%$19,530$13.10 $7.451.4 1.8$388

Redwood County 1,355$63,800 $479$1,595$681 $27,240 21%$19,140$13.10 $10.361.4 1.3$539

Renville County 1,297$64,300 $482$1,608$681 $27,240 20%$19,290$13.10 $11.181.4 1.2$581

Rice County 5,877$76,000 $570$1,900$881 $35,240 26%$22,800$16.94 $10.141.8 1.7$527

Rock County 972$63,800 $479$1,595$681 $27,240 25%$19,140$13.10 $8.881.4 1.5$462

Roseau County 1,351$63,600 $477$1,590$681 $27,240 21%$19,080$13.10 $10.031.4 1.3$522

St. Louis County 24,450$67,200 $504$1,680$771 $30,840 29%$20,160$14.83 $9.951.6 1.5$517

Scott County 7,896$90,400 $678$2,260$1,086 $43,440 17%$27,120$20.88 $11.452.2 1.8$595

Sherburne County 5,853$90,400 $678$2,260$1,086 $43,440 19%$27,120$20.88 $10.002.2 2.1$520

Sibley County 1,282$69,800 $524$1,745$694 $27,760 21%$20,940$13.35 $11.081.4 1.2$576

Stearns County 17,202$70,000 $525$1,750$740 $29,600 30%$21,000$14.23 $11.721.5 1.2$609

Steele County 3,375$74,700 $560$1,868$771 $30,840 24%$22,410$14.83 $8.801.6 1.7$458

Stevens County 1,203$73,700 $553$1,843$681 $27,240 33%$22,110$13.10 $8.881.4 1.5$462

Swift County 1,126$67,500 $506$1,688$681 $27,240 27%$20,250$13.10 $10.041.4 1.3$522

Todd County 1,807$57,300 $430$1,433$681 $27,240 18%$17,190$13.10 $8.271.4 1.6$430

Traverse County 294$66,500 $499$1,663$681 $27,240 19%$19,950$13.10 $8.531.4 1.5$444

Wabasha County 1,668$70,000 $525$1,750$771 $30,840 19%$21,000$14.83 $8.861.6 1.7$460

Wadena County 1,311$51,800 $389$1,295$681 $27,240 23%$15,540$13.10 $9.031.4 1.5$470

Waseca County 1,656$69,100 $518$1,728$681 $27,240 23%$20,730$13.10 $10.881.4 1.2$566

Washington County 18,068$90,400 $678$2,260$1,086 $43,440 20%$27,120$20.88 $11.182.2 1.9$581

Watonwan County 1,142$63,800 $479$1,595$681 $27,240 26%$19,140$13.10 $8.601.4 1.5$447



1: BR = Bedroom



19www.mhponline.org





(2011-2015)


2 BRFMR


to afford2 BR FMR

Annual AMI


at AMI30%

of AMI

Monthly rent


Monthly rent

affordableat mean

renter wage3 5

1

HOUSING COSTS


(2017)




FMR



FY17 HOUSING WAGE

2 4

Wilkin County 680$67,300 $505$1,683$681 $27,240 24%$20,190$13.10 $7.381.4 1.8$384

Winona County 5,743$71,200 $534$1,780$714 $28,560 30%$21,360$13.73 $8.771.4 1.6$456

Wright County 7,787$90,400 $678$2,260$1,086 $43,440 17%$27,120$20.88 $9.732.2 2.1$506

Yellow Medicine County 888$63,200 $474$1,580$681 $27,240 21%$18,960$13.10 $9.531.4 1.4$495



1: BR = Bedroom



Out of Reach Minnesota is released jointly by the Minnesota Housing Partnership and the National Low Income Housing Coalition (NLIHC), a Washington, D.C.-based organization dedicated solely to achieving socially just public policy that assures people with the lowest incomes in the United States have affordable and decent homes. Contact Carolyn Szczepanski at [email protected] or (651) 925-5540 for assistance in accessing or analyzing Out of Reach data for any county or metro area of Minnesota — select metro zip codes.

CREDITS AND ACKNOWLEDGMENTSWriting, data analysis and mapping by Gabriela Norton, MHP Research and Communications AssociateEditing, design and layout by Carolyn Szczepanski, MHP Director of Research and CommunicationsData review by Atticus Jaramillo, PhD candidate, University of North Carolina-Chapel Hill

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