ATLANTA — The City of Atlanta is ranked as the place where the rent to wage ratio is the worst in the whole of the United States.
According to a new study by Best Interest Financial and Clever Real Estate, not one of the 50 most populous metropolitan areas are affordable to rent a one-bedroom apartment in on minimum wage.
But for Atlanta, things have a much larger gap.
The study reported that the necessary wage to rent a place is $34.58, so Atlanta renters have a more than $27 wage gap to affording a rental unit.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
On the flip side of the rent-to-earnings ratio, the same study said based on minimum wage, Atlanta’s “ideal rent” would be just $348 per month.
That’s more than $1,300 less than the rent reported in the area, according to the study.
The study also reported that Atlanta’s affordability gap is so significant, five minimum wage workers would be needed just to rent a single one-bedroom apartment, based on the current monthly rent in the area.
TRENDING STORIES:
- Secretary accused of stealing donations from Georgia volunteer fire department
- Check your tickets! One lucky Georgian just won $4 million
- Student loan Repayment Assistance Plan launches, find out how to qualify
However, the study said while Atlanta is the worst, it’s not alone. There are seven other cities that need workers to band together with their earnings just to share a space.
According to the study, “Atlanta is the most expensive metro for minimum wage workers, who would spend 143% of their gross monthly income on typical rent.”
For a single minimum wage worker, earning roughly $1,160 each month, the current rent level of $1,660 means they’d be $500 short, immediately.
It was unclear if the numbers included were for pre- or post-tax withholdings, or other full-time benefits taken out of paychecks before they hit bank accounts.
The rank of top eight metropolitan areas for wage-to-rent has to cross a gulf to afford it are:
- Atlanta
- Dallas
- Raleigh
- Nashville
- Austin
- Charlotte
- Philadelphia
- Salt Lake City
The cheapest cities for renters making the federal minimum wage were St. Louis and Kansas City, both in Missouri.
“In St. Louis, the most affordable metro, workers earn $15 an hour and pay $995 for a one-bedroom apartment, with rent consuming about 41% of gross monthly income, still above the recommended 30%,” the study said.
[SIGN UP: WSB-TV Daily Headlines Newsletter]