WASHINGTON, D.C.–Renters in Illinois need to earn $17.34 per hour in order to afford a basic apartment, according to a report released today that compares the cost of rental housing with what renters can really afford. The comparison reveals that nowhere in the United States do minimum wage workers earn enough to afford a decent, affordable two-bedroom apartment.
In Illinois, the average rent for a two-bedroom apartment is $902. In order to afford this level of rent and utilities—without paying more than 30% of income on housing—a household must earn $3,005 monthly or $36,064 annually. Assuming a 40-hour workweek, 52 weeks per year, this level of income translates into a Housing Wage of $17.34
In Illinois, a minimum wage worker earns an hourly wage of $8.25. In order to afford the rent for a two-bedroom apartment, a minimum wage earner must work 84 hours per week, 52 weeks per year. Or a household must include 2.1 minimum wage earners working 40 hours per week year-round in order to afford a modest two-bedroom apartment.
As the following table shows, across the state the Housing Wage ranges from $19.21 in the Kendall County metropolitan area to $12.25 in the Macoupin County metropolitan area. The Housing Wage in the Chicago metropolitan area is $18.83.
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Housing Wage by Metropolitan Areas in Illinois
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| Area |
Housing Wage for 2 Bedroom Apartment |
| Kendall County HMFA |
$19.21 |
| Chicago-Naperville-Joliet HMFA |
$18.83 |
| Grundy County HMFA |
$17.56 |
| State of Illinois |
$17.34 |
| DeKalb County HMFA |
$16.85 |
| Bloomington-Normal MSA |
$16.63 |
| Champaign-Urbana MSA |
$16.58 |
| St. Louis HMFA |
$15.65 |
| Kankakee-Bradley MSA |
$14.58 |
| Rockford MSA |
$14.50 |
| Springfield MSA |
$14.29 |
| Peoria MSA |
$13.94 |
| Danville MSA |
$13.67 |
| Bond County HMFA |
$13.21 |
| Decatur MSA |
$13.15 |
| Davenport-Moline-Rock Island MSA |
$13.13 |
| Cape Girardeau-Jackson MSA |
$13.06 |
| Non-metro areas/Rural |
$12.74 |
| Macoupin County HMFA |
$12.25 |
“While we need to create more housing, we can also increase the affordability of housing by raising the minimum wage here in Illinois,” said Bob Palmer, Policy Director for Housing Action Illinois. “We’re glad the Illinois Senate took action last week to move forward towards increasing the state minimum wage to $10.65 over three years. This will help reduce the number of households who pay more than 30% of their income just to keep a roof over their heads.”
The report, Out of Reach 2014, was jointly released by the National Low Income Housing Coalition, a Washington, D.C.-based research and advocacy organization, and Housing Action Illinois. The report provides the Housing Wage and other housing affordability data for every state, metropolitan area, combined non-metropolitan area, and county in the country.
Data in the report comes from a variety of federal sources. Data for average rents is based on the federal Fair Market Rent (FMR) for specific geographic areas. The FMR for an area is the amount that would be needed to pay the gross rent (shelter rent plus utilities) of privately owned, decent, and safe rental housing of a modest nature with suitable amenities.
Housing Action Illinois is a statewide coalition formed to protect and expand the availability of quality, affordable housing throughout Illinois. Their members include housing counseling agencies, homeless service providers and developers of affordable housing.
For additional information, visit http://www.nlihc.org/oor.