Seven U.S. cities where you need to earn more than four times the minimum wage to comfortably cover your rental expenses.

According to a recent Clever Real Estate report, it's not feasible for workers earning the minimum wage in many large U.S. cities to adhere to the common guideline of spending no more than 30% of their earnings on housing costs.

According to Clever, in seven major cities, you would need to earn more than four times the federal minimum wage of $7.25 to afford the fair market rent without exceeding 30% of your income on housing or working a second job.

The report analyzed wage and housing data from various sources, including the U.S. Department of Labor and the Department of Housing and Urban Development, to determine the minimum wage required for a fair market-priced rental in the 50 largest U.S. metros.

Clever follows the definition of fair market rent, which is the price at which 60% of similar units in the area rent for more than the listed amount and 40% rent for less.

According to Clever Real Estate, seven major U.S. metros require workers to earn four times the minimum wage to comfortably cover their rent expenses.

Atlanta

• Fair market rent: $1,653
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $31.79

Austin, Texas

• Fair market rent: $1,650
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $31.73

Nashville, Tennessee

• Fair market rent: $1,650
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $31.73

Charlotte, North Carolina

• Fair market rent: $1,647
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $31.67

Dallas

• Fair market rent: $1,606
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $30.88

Raleigh, North Carolina

• Fair market rent: $1,592
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $30.62

Philadelphia

• Fair market rent: $1,512
• Hourly minimum wage: $7.25
• Necessary hourly minimum wage: $29.08

A one-bedroom dwelling would need to be priced at $377 a month for a minimum wage worker to comfortably afford rent in all of the previous cities, according to data. However, finding a unit at that price may be challenging.

While rent prices have increased by 30.4% since 2019, the federal minimum wage has remained at $7.25 per hour since 2009.

A 2024 report from Harvard University's Joint Center for Housing Studies reveals that being cost-burdened, which means spending more than 30% of your income on rent, is increasingly common among workers across all income levels.

The report indicates that 22.4 million renters were considered cost-burdened in 2022, with 12 million of them being severely cost-burdened, meaning they spent more than 50% of their income on housing and utilities.

The report highlights that ensuring equal access to safe, affordable, and stable housing is a pressing challenge in the nation, which requires cooperation from all sectors and levels of government to address.

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