Name of Report: Out of Reach 2003: America’s Housing Wage Climbs (Rhode Island)
Organizational Affiliation: National Low Income Housing Coalition/LIHIS
Author: N/A
Contact information: National Low Income Housing Coalition (NLIHC); 1012 Fourteenth Street NW, Suite 610; Washington D.C. 20005; Tel: 202-662-1530; Fax: 202-393-1973; info@nlihc.org
Date: 2003
Pages: 4 pages (unnumbered)
Content Summary
This report is a series of tables that identify the number of renters in Rhode Island, and looks at the average rental price vs. low income wages. Essentially, the report highlights the fact that there is a large disparity between what the cost of living is and what people are actually earning in Rhode Island. The “affordable” rent percentage is based on the generally accepted idea that rent should cost no more that 30% of the renter’s total income.
Major Findings
In Rhode Island, a minimum wage earner (earning $6.15 per hour) can afford a monthly rent of no more than $320. Furthermore, a worker earning minimum wage must work 87 hours per week (roughly 14.5 hours Monday-Saturday) in order to afford a two-bedroom unit at Fair Market value. This means the Housing wage in Rhode Island is $13.42, which is more that twice the minimum wage of the state. In Providence, Fall River, and Warwick, the Housing Wage is slightly lower than the state average. On the other hand, in the non-metro areas of Rhode Island the Housing Wage is more than $4.00 higher than the state average.
Related Issues
This report helps to identify the problem of earning vs. living, which is closely related to state financial assistance under the Family Independence Program (FIP). Minority families, specifically Black and Latino families remain at the same or higher levels of state financial assistance. Affordable housing is listed as one of the major hindrances to obtaining self-sufficiency. (Rhode Island Family Independence Act, 2002) Further investigation into the minimum wage earners i.e. how many are there, what is their racial/ethnic demography, how many households have one or more minimum wage or close to minimum wage earners, would be helpful in determining how many Rhode Islanders struggle to meet the Housing Wage. Also, it is important to know whether landlords are rent below, above or at Fair Market prices. This report is an important first step to investigating these questions.
Reference List
Estimate of Annual Median Income and Fair market Rents obtained from the U.S. Department of Housing and Urban Development 2003 and 2004 proposed figures.
Rhode Island’s Family Independence Act: Research Demonstrates Wisdom of Putting Families First, Rhode Island Department of Human Services.
How to Access Report: http://www.nlihc.org/oor2003/index.php