Area renters need $22.62 an hour to afford apartment

Seattle-Bellevue area renters on average must earn at least $22.62 an hour to afford a modest apartment, yet the average renter makes just $17.27 an hour.

This is the finding of Out of Reach 2011, a report released annually by the National Low Income Housing Coalition (NLIHC) that shows the mismatch between the rents available across the country and what low income renters can really afford.

The study includes extensive data for every state, metropolitan area and county in the country.

For example, in the Seattle-Bellevue area, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,176, according to the survey. In order to afford this level of rent and utilities, without paying more than 30 percent of income on housing, a household must earn $3,920 monthly or $47,040 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a wage of $22.62.

In Seattle-Bellevue, a minimum wage worker earns an hourly wage of $8.67 – the highest in the country. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 104 hours per week, 52 weeks per year. Or, a household must include 2.6 minimum wage earner(s) working 40 hours per week year-round in order to make the two-bedroom FMR affordable.

In Seattle-Bellevue, the estimated mean (average) wage for a renter is $17.27 an hour. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 52 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.3 worker(s) earning the mean renter wage in order to make the two-bedroom FMR affordable.

Monthly Supplemental Security Income (SSI) payments for an individual are $674 in Seattle-Bellevue. If SSI represents an individual’s sole source of income, $202 in monthly rent is affordable, while the FMR for a one-bedroom is $977.