CLARKSVILLE, Tenn. (CLARKSVILLENOW) – Out of Reach is a report conducted by the National Low Income Housing Coalition (NLIHC) that documents the gap between renters’ wages and the cost of rental housing.
The report’s Housing Wage is the hourly wage a full-time worker must earn to afford a modest rental home without spending more than 30 percent of his or her income on housing costs.
NLIHC says these numbers are based on HUD’s Fair Market Rent (FMR), which is an estimate of what a family moving today can expect to pay for a modest rental home in the area.
The report breaks down the numbers by state and county.
In Tennessee, the average renter wage is $14.50 and 34 percent of the population are renters. Based on the numbers provided, an individual earning minimum wage ($7.25) would have to work 71 hours per week to afford a modest 1-bedroom rental home at Fair Market Rent.
In Montgomery County specifically, 41 percent of households are renters. In order to afford a modest 1-bedroom apartment, an individual must earn at least $12.69 per hour or $26,400 per year, according to the report.
An individual earning minimum wage in Montgomery County would only be able to afford $377 per month in rent. On average, Fair Market Rent for a 1-bedroom apartment in the county is $660.
More in-depth figures for both the state and county can be found here.