- That’s down from a peak of 125 hours when rents hit a record high in 2022.
- New Hampshire’s minimum-wage workers have to toil longest to afford the median-priced apartment, while South Dakota’s workers fall on the other end of the spectrum.
The average minimum-wage earner in the U.S. would have to work 106 hours per week to afford the $1,599 median-priced apartment.
We define an apartment as affordable if a renter making minimum wage spends 30% of their income on rent. This is based on a Redfin analysis of median asking rents as of the three months ending Jan. 31, 2025, and annual wage data (through 2024) from the U.S. Department of Labor. Scroll to the bottom for a full methodology.
A rule of thumb in personal finance is that people should spend no more than 30% of their earnings on housing, though this rule has become harder to follow as housing costs have soared. Many minimum-wage workers are spending over 30% to make ends meet. Many are also living in apartments with below-average rents.
“It’s obviously not realistic for most people to clock into their job for over 100 hours a week, but this thought experiment shines light on the massive rental affordability gap between the average American and our country’s lowest earners,” said Redfin Chief Economist Daryl Fairweather. “It’s virtually impossible for a minimum-wage worker to afford the typical apartment on their own, which is why many have to find ways to reduce their housing expenses, like living with roommates or family members, applying for a spot in public housing, or using Housing Choice Vouchers.”
The $7.25 federal minimum wage hasn’t increased since 2009. For reference, that’s the same year the iPhone 3GS came out (we’re now at iPhone 16). But the effective minimum wage has increased in 30 states over the last decade, according to the Economic Policy Institute. Note that for this report, we use a national effective minimum wage of $11.59 for 2025. Workers earning less than minimum wage tend to be young people, often in the service industry, and women make up a higher percentage of these workers than men, according to the U.S. Bureau of Labor Statistics.
It’s worth noting that the Trump administration has proposed cutting half of federal workers at the U.S. Department of Housing and Urban Development (HUD), which sends funds to public housing agencies to pay for rental assistance programs such as the Housing Choice Voucher Program.
Renting Has Become a Little More Affordable for Minimum-Wage Workers…But Not Much
When the median asking rent peaked in August 2022 at $1,704, the average minimum-wage earner would’ve had to work 125 hours a week to afford the typical apartment—19 more hours than they would now.
The median U.S. asking rent isn’t growing nearly as fast as it was during the pandemic, and is currently 6.2% ($105) below its record high. Still, it’s 20.4% ($271) higher than pre-pandemic (January 2020) levels.
Today, it would take the average minimum-wage earner 32 hours of work per week just to cover the cost of rent alone, with no money left over for other expenses, assuming they were renting the median-priced U.S. apartment.
New Hampshire’s Minimum-Wage Workers Have to Work the Most Hours to Afford the Typical Apartment
In New Hampshire, someone earning the $7.25 minimum wage would have to work a 224-hour week to afford the $2,110 median-priced apartment. That’s the most hours of any state Redfin analyzed. It’s followed by Pennsylvania (183 hours) and Idaho (165 hours).
These states top the list because they have among the lowest minimum wages in the nation, and do not have among the lowest rents. For example, New Hampshire’s median asking rent is 32% above the national median of $1,599.
South Dakota’s Minimum-Wage Workers Have to Work the Fewest Hours to Afford the Typical Apartment
In South Dakota, someone earning the $11.20 minimum wage would have to work a 75-hour week to afford the $1,085 median-priced apartment. That’s the fewest hours of any state Redfin analyzed. Missouri and Nebraska are next, both at 76 hours.
These states all have below-average asking rents, and minimum wages that are not among the lowest in the country. South Dakota’s median asking rent, for example, is 32.1% below the national median rent.
State-Level Summary: Minimum Wage Rental Affordability
The table below includes the 41 U.S. states (plus Washington, D.C.) for which there is sufficient data. Wage data is as of 2024 and asking rent data is as of the three months ending Jan. 31, 2025.
| State | Weekly hours minimum-wage worker needs to work to afford median-priced apartment on their own | YoY change in weekly hours minimum-wage worker needs to work to afford median-priced apartment on their own | Median asking rent | YoY change in median asking rent | Effective minimum wage |
|---|---|---|---|---|---|
| Arizona | 77 | -2 | $1,430 | -2.9% | $14.35 |
| Arkansas | 78 | 5 | $1,115 | 7.2% | $11.00 |
| California | 126 | -1 | $2,611 | -0.7% | $16.00 |
| Colorado | 89 | -2 | $1,668 | -2.6% | $14.42 |
| Connecticut | 107 | -4 | $2,184 | -3.4% | $15.69 |
| Delaware | 96 | -3 | $1,657 | -2.9% | $13.25 |
| Florida | 115 | -4 | $1,796 | -3.2% | $12.00 |
| Georgia | 160 | 3 | $1,505 | 1.7% | $7.25 |
| Idaho | 165 | 5 | $1,550 | 3.3% | $7.25 |
| Illinois | 95 | 5 | $1,720 | 5.2% | $14.00 |
| Indiana | 135 | 8 | $1,276 | 6.3% | $7.25 |
| Iowa | 115 | -3 | $1,085 | -2.7% | $7.25 |
| Kansas | 133 | 13 | $1,250 | 10.7% | $7.25 |
| Kentucky | 133 | 9 | $1,249 | 7.5% | $7.25 |
| Maine | 105 | 8 | $1,930 | 7.8% | $14.15 |
| Maryland | 87 | 7 | $1,686 | 8.8% | $15.00 |
| Massachusetts | 135 | 8 | $2,633 | 6.0% | $15.00 |
| Michigan | 95 | 6 | $1,273 | 6.2% | $10.33 |
| Minnesota | 108 | -4 | $1,525 | -3.2% | $10.85 |
| Missouri | 76 | 2 | $1,209 | 2.0% | $12.30 |
| Montana | 126 | -4 | $1,684 | -2.9% | $10.30 |
| Nebraska | 76 | 3 | $1,190 | 4.4% | $12.00 |
| Nevada | 96 | -1 | $1,500 | -1.0% | $12.00 |
| New Hampshire | 224 | -13 | $2,110 | -5.6% | $7.25 |
| New Jersey | 125 | 3 | $2,463 | 2.2% | $15.13 |
| New Mexico | 95 | 4 | $1,480 | 4.2% | $12.00 |
| New York | 99 | -1 | $1,920 | -0.6% | $15.00 |
| North Carolina | 150 | -1 | $1,409 | -0.6% | $7.25 |
| North Dakota | 106 | -3 | $995 | -2.9% | $7.25 |
| Ohio | 100 | 9 | $1,359 | 9.3% | $10.45 |
| Oklahoma | 113 | -7 | $1,061 | -6.1% | $7.25 |
| Oregon | 90 | -7 | $1,725 | -7.1% | $14.70 |
| Pennsylvania | 183 | 0 | $1,719 | 0.0% | $7.25 |
| Rhode Island | 116 | 13 | $2,110 | 12.6% | $14.00 |
| South Dakota | 75 | 4 | $1,085 | 5.2% | $11.20 |
| Texas | 143 | -7 | $1,347 | -4.7% | $7.25 |
| Utah | 156 | -8 | $1,473 | -5.0% | $7.25 |
| Virginia | 119 | 6 | $1,857 | 5.0% | $12.00 |
| Washington | 93 | 4 | $1,970 | 4.0% | $16.28 |
| Washington, D.C. | 102 | -2 | $2,330 | -2.1% | $17.50 |
| Wisconsin | 159 | 13 | $1,496 | 8.7% | $7.25 |
| Wyoming | 117 | 10 | $1,099 | 9.8% | $7.25 |
| U.S.A. | 106 | 0 | $1,599 | -0.1% | $11.59 |
Methodology
Median asking rent figures in this report cover newly listed units in apartment buildings with five or more units. The median is calculated based on a rolling three-month period, meaning the median asking rent for January 2024 includes rentals listed on Rent.com and Redfin.com during the three months ending January 31, 2025. State-level data in this report covers 41 of the 50 U.S. states (plus Washington, D.C.), focusing on regions where Rent.com and Redfin have sufficient rental data. National figures represent data for the entire U.S. Asking rents reflect the current costs of new leases, meaning the reported median rent is based on listings available for new renters during the period, rather than what all renters are currently paying.
Minimum wage data is sourced from the U.S. Department of Labor, covering state-level minimum wages from 2019 to 2024. For states that report a range of wages, the upper bound is used. Since 2025 data haven’t been published yet, we use minimum wage data from 2024. This analysis focuses on the effective minimum wage rather than the statutory minimum wage because the effective minimum wage is more reflective of actual wages. We calculate the national figure as a population-weighted average of state minimum wages. In states where the statutory minimum wage is below the federal minimum (Georgia and Wyoming), most workers are subject to the Fair Labor Standards Act (FLSA), which mandates a minimum wage of $7.25. Therefore, for these two states, the minimum wage has been adjusted to $7.25 across all years to align with the effective minimum wage most workers receive.
