An analysis of how housing costs outpace wages
BY NICOLE LAYTON
The following five tables are based on information from the National Low-Income Housing Coalition’s 2024 “Out of Reach: The High Cost of Housing” report that looks at the cost of renting a home and how much a person would have to make to be able to afford the home.
“In North Carolina, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,311. In order to afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $4,370 monthly or $52,437 annually,” according to the report, released in June 2024. A household must earn at least $25.21 per hour and work full-time to meet this requirement.
According to the North Carolina Housing Coalition, the housing wage in the state increased from $25.21 per hour in 2024 to $21.54 per hour. “North Carolina is now ranked 28th (1 being the highest wage, 50 being the lowest) for its two-bedroom Housing Wage when compared to other states.”
A North Carolina resident earning minimum wage ($7.25/hour) would have to work at least 139 hours per week to afford a two-bedroom rental at fair market rent, the equivalent of 3.5 full-time jobs. To afford a one-bedroom rental, a full-time worker earning minimum wage in North Carolina would have to work at least 120 hours — the equivalent of three full-time jobs.
A copy of the report and other documents, can be found at Out of Reach | National Low Income Housing Coalition .
The following five tables include data from the report. We’ll explain what each table means. The tables were made to adjust to the size of the viewing screen. Those with mobile devices should hold their phones horizontally to best view the tables.
Local metropolitan areas and housing costs
| Metropolitan areas | Hourly wage needed to afford a 2 bedroom FMR | Average monthly rental cost for a 2 BR FMR | Annual income needed to afford a 2BR FMR | Full-time jobs at state minimum wage ($7.25) to afford 2BD FMR |
|---|---|---|---|---|
| Camden County HMFA | $17.56 | $913 | $36,520 | 2.4 |
| Gates County HMFA | $20.19 | $1,050 | $42,000 | 2.8 |
| Virginia Beach-Norfolk-Newport News HMFA | $28.71 | $1,493 | $59,720 | 4.0 |
Created the the US Housing and Urban Development Office, HMFA is a Metropolitan Fair Market Housing Area. Each area must have at least 100 census tracts. There are other requirements based on housing, income, etc.
The HMFAs listed in this table cover most of northeastern North Carolina. The fair market rent prices are determined by HUD, not actually what landlords charge.
While 30 states have minimum wages that are higher than the federal minimum wage, the average minimum-wage worker in the United States must work 113 hours per week (2.8 full-time jobs) to afford a two-bedroom rental home at fair market rent or 95 hours per week (2.4 full-time jobs) to afford a one-bedroom rental home.
This graphic shows that in areas near Camden and Gates counties and the Virginia Beach area (which includes part of North Carolina), households have to make between $17.56 and $28.71 an hour to afford a two-bedroom rental home at fair market rent. For those making North Carolina’s minimum wage of $7.25 per hour, the average worker will have to work between 95 hours a week (2.4 full-time jobs) and 160 hours a week (4.0 full-time jobs) to afford a two-bedroom rental.
Housing Costs by County
| County | Hourly wage needed to afford a 2 bedroom FMR | Average monthly rental cost for a 2 BR FMR | Annual income needed to afford a 2 BR FMR | Full-time jobs at state minimum wage ($7.25) to afford 2 BR FMR |
|---|---|---|---|---|
| Bertie | $17.38 | $904 | $36,160 | 2.4 |
| Camden | $17.56 | $913 | $36,520 | 2.4 |
| Chowan | $20.02 | $1,041 | $41,640 | 2.8 |
| Dare | $24.62 | $1,280 | $51,200 | 3.4 |
| Gates | $20.19 | $1,050 | $42,000 | 2.8 |
| Hyde | $16.90 | $879 | $35,160 | 2.3 |
| Pasquotank | $20.35 | $1,058 | $42,320 | 2.8 |
| Perquimans | $18.33 | $953 | $38,120 | 2.5 |
| Tyrrell | $16.46 | $856 | $34,240 | 2.3 |
| Washington | $16.46 | $856 | $34,240 | 2.3 |
Like the graph before it, the county graph show that those living in counties near the Albemarle Sound must make between $16.46 per hour and $24.62 per hour to afford a rental home at the fair market rent.
The full-times jobs needed to afford a two-bedroom rental at fair market rent is determined by the higher of the state or federal minimum-wage rate. In North Carolina’s case, the rate — $7.25 per hour — is the same.
Area Median Income (AMI) by County
| County | Annual AMI | Monthly rent affordable at AMI | Monthly rent affordable at 30% of AMI |
|---|---|---|---|
| Bertie | $63,500 | $1,588 | $557 |
| Camden | $94,400 | $2,358 | $708 |
| Chowan | $72,200 | $1,805 | $542 |
| Dare | $108,200 | $2,705 | $812 |
| Gates | $73,800 | $1,845 | $554 |
| Hyde | $57,000 | $1,425 | $428 |
| Pasquotank | $82,000 | $2,050 | $615 |
| Perquimans | $81,000 | $2,050 | $608 |
| Tyrrell | $62,700 | $1,568 | $470 |
| Washington | $62,600 | $1,565 | $470 |
Affordable rent represent the generally accepted standard of spending not more than 30% of gross income on gross housing.
Area Median Income is the midpoint of a specific area’s income distribution. HUD sets AMI according to family size and the rate varies by region.
The cost of a rental at 30% area median income is a standard that refers to households that are considered to be extremely low income. It is also usually less than the federal poverty guideline.
County Renter Data
| County | Number of renter households (2018-2021) | Estimated hourly mean renter wage (2024) | Monthly rent affordable mean renter wage | Full-time jobs at mean renter wage need to afford 2 BR FMR |
|---|---|---|---|---|
| Bertie | 1,751 | $12.27 | $638 | 1.4 |
| Camden | 617 | $18.95 | $985 | 0.9 |
| Chowan | 992 | $14.23 | $740 | 1.5 |
| Dare | 3,568 | $15.12 | $786 | 1.6 |
| Gates | 843 | $19.38 | $1,008 | 1.0 |
| Hyde | 584 | $10.09 | $525 | 1.7 |
| Pasquotank | 5,520 | $14.88 | $774 | 1.4 |
| Perquimans | 1,303 | $12.40 | $645 | 1.5 |
| Tyrrell | 340 | $11.03 | $574 | 1.5 |
| Washington | 1,537 | $13.00 | $676 | 1.3 |
The table above shows the number of renters and at what percentage they make of the housing market. It also shows the 2024 estimated renter income, which is based on 2022 Bureau of Labor Statistics wage data and adjusted for wage-increase, etc.
The Housing Wage is base on the HUD fair market rents, which are estimate of what a family moving today can expect to pay for a decent rental home, not what all rentals are currently paying.
FMR is the basis of the rent-payment standard for Housing Choice Vouchers and other HUD programs. It’s usually set at the 40th percentile of rents for typical homes occupied by recent movers in an area.
According to the North Carolina Housing Coalition, in 2024:
- Bertie County ranks No. 57 out of 100 counties of the amount of evictions among renter households. An annual salary of $36,160 per year is needed to afford the fair market rent.
- In Camden County, 18 families (2.26%) faced foreclosure while 25 families (13.44%) faced an eviction filing.
- In Chowan County, 28% of the 1,660 rental households are cost-burdened according to the North Carolina Housing Coalition. Of those about 40% of renters (764) and 23% of households (896) have difficulty affording their homes.
- In Dare County, 52% or 1,731 of renters have difficulty affording their homes, while 24% or 2,927 of homeowners faced the same problem this year.
- In Hyde County, 72% or 288 households that pay rent for their homes have difficulty affording their homes.
- Pasquotank County ranks 29 out of 100 for evictions among renter households in the state. A total of 503 families (20.10%) faced eviction filing, while 76 families (3.46%) faced foreclosure.
- In Perquimans County, 538 (49%) of all households that rent have difficulty affording their homes.
- In Washington County, 655 (60%) of households that rent have difficulty affording their homes.
North Carolina compared to its neighbors
| State | Hourly wage needed to afford 2 BR FMR | 2 BR FMR | Estimated hourly mean renter wage (2024) | Monthly rent affordable at mean renter wage | Full-time jobs at mean renter wage to afford 2BR FMR |
|---|---|---|---|---|---|
| North Carolina | $25.21 | $1,311 | $20.61 | $1,072 | 1.2 |
| Georgia | $28.98 | $1,507 | $22.63 | $1,177 | 1.6 |
| South Carolina | $24.02 | $1,252 | $17.32 | $900 | 1.4 |
| Tennessee | $24.31 | $1,264 | $20.73 | $1,078 | 1.2 |
| Virginia | $30.25 | $1,573 | $23.17 | $1,205 | 1.3 |