These 10 big cities are too expensive for anyone earning minimum wage to afford rent in 2025
In these cities, a worker receiving minimum wage would struggle to rent a one-bedroom apartment.
In major cities across the United States, minimum-wage workers often struggle to afford a one-bedroom apartment.
According to data from Zillow, the average cost of a one-bedroom apartment in these ten key cities consumes approximately 71% of a minimum-wage worker’s monthly income. For instance, in Atlanta, a minimum wage worker’s monthly earnings fall below the average rental price of even a small apartment.
Where minimum wage falls short
Financial experts advise that no more than thirty percent of income should be allocated to housing expenses. Unfortunately, in each of these cities, meeting this guideline is nearly impossible on a minimum wage salary.
- Dallas, TX: $1,000.00
- Houston, TX: $1,000.00
- New York, NY: $1,000.00
- Pheonix, AZ: $1,087.00
- Atlanta, GA: $1,250.00
- Chicago, IL: $1,272.00
- Orlando, FL: $1,295.00
- Los Angeles, CA: $1,677.00
- Miami, FL: $2,000.00
- San Diego, CA: $2,050.00
- San Francisco, CA: $2,650.00
Source: Zillow
When comparing these figures to the monthly income those on minimum wage receive, we see that even the price of a one-bedroom exceeds the budget advice of most financial experts. These figures were calculated by multiplying the minimum wage by forty, and again by four to represent the four weeks in a month.
Approximate monthly salary for a worker paid minimum wage
- Dallas, TX: $1,160.00
- Houston, TX: $1,160.00
- Atlanta, GA: $1,160.00
- Orlando, FL: $2,240.00
- Miami, FL: $2,240.00
- Pheonix, AZ: $2,352.00
- Chicago, IL: $2,592.00
- New York, NY: $2,640.00
- San Diego, CA: $2,760.00
- Los Angeles, CA: $2,764.80
- San Francisco, CA: $2,987.20
Rent as a portion of monthly income
When comparing the monthly salary to the average rent, we find that the least affordable cities are Atlanta, Georgia; Miami, Florida; and San Francisco, California. The following list shows the proportion of rent that would represent as a portion of a worker’s monthly income.
- New York, NY: 37.88%
- Pheonix, AZ: 46.22%
- Chicago, IL: 49.07%
- Orlando, FL: 57.81%
- Los Angeles, CA: 60.66%
- San Diego, CA: 74.28%
- Dallas, TX: 86.21%
- Houston, TX: 86.21%
- San Francisco, CA: 88.71%
- Miami, FL: 89.29%
- Atlanta, GA: 107.76%
Rental prices have risen by 24 percent since March 2021, which puts intense pressure on the working poor. Over the same period, credit card debt held by households has jumped 51 percent, as inflation has cut into purchasing power, leading households to rely more on credit.
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