Report finds Tennessee ranks 38th for wages needed to afford rent
NASHVILLE, Tenn. (WZTV) - A report from the National Low Income Housing Coalition finds Tennesseans need to earn at least $15.34 per hour in order to afford a two-bedroom rental home.
The group's "Out of Reach" report examined what residents in each state had to earn in order to afford housing without exceeding 30 percent of their income. The group points out the national average minimum income needed of $21.21 per hour is far below the federal minimum wage of $7.25.
Tennessee ranks 38th in the nation for highest housing wage needed. A worker earning just the federal minimum would have to work 85 hours per week to afford a two-bedroom rental home.
The report states in Tennessee, fair market rent for a two-bedroom is $798 per month. At that rate, a household must earn $31,907 annually.
The Nashville-Davidson-Murfreesboro-Franklin area was most expensive with a wage of $18.44 needed. Memphis was second at $16.06, followed by Chattanooga ($15.81), Knoxville ($15.60) and Clarksville ($14.77).
Outside of Puerto Rico ($9.68), Arkansas had the lowest hourly income needed to afford a two-bedroom rental with $13.72 per hour. Hawaii topped the list with $35.20 needed per hour.