Out Reach 2004 - California Affordable Housing Statistics are Staggering

In California, an extremely low income household (earning $19,327, 30% of the Area Median Income of $64,422) can afford monthly rent of no more than $483, while the Fair Market Rent for a two bedroom unit is $1,104.

A minimum wage earner (earning $6.75 per hour) can afford monthly rent of no more than $351.

An SSI recipient (receiving $790 monthly) can afford monthly rent of no more than $237, while the Fair Market Rent for a one-bedroom unit is $904.

In California, a worker earning the Minimum Wage ($6.75 per hour) must work 126 hours per week in order to afford a two-bedroom unit at the area's Fair Market rent.

The Housing Wage in California is $21.24. This is the amount a full time (40 hours per week) worker must earn per hour in order to afford a two-bedroom unit at the area's Fair Market rent.

A unit is considered affordable if it costs no more than 30% of the renter's income.

Despite the emphasis on homeownership and the marginalization of renters, renter households still make up fully one-third of the households in the United States – nearly 36 million households. Out of Reach is a side-by-side comparison of wages and rents in every county, Metropolitan Statistical Area (MSA), combined nonmetropolitan area and state in the United States. For each jurisdiction, the report calculates the amount of money a household must earn in order to afford a rental unit of a range of sizes (0, 1, 2, 3, and 4 bedrooms) at the area’s Fair Market Rent (FMR), based on the generally accepted affordability standard of paying no more than 30% of income for housing costs. From these calculations the hourly wage a worker must earn to afford the FMR for a two bedroom home is derived. This figure is the Housing Wage.   See the report in its entirety.