Wanna rent stress-free in Alabama? You’ll need to make at least $59K
The rent is too dang high, even in Alabama. According to a recent report from researchers at the University of Alabama and two other schools, the average state renter living in metro areas must make a little over Alabama’s median household income to ensure their rent payment won’t be a financial burden.
Alabama’s median household income hovers at just under $57,000. That’s an hourly rate of about $30 for a full-time employee.
On average, a single-income renter would need to make $58,800 a year to avoid hitting the rent-burdened 30% threshold, based on an average rental price of about $1,400.
Prices vary widely around the state. In Mobile, the rent-burdened threshold is a yearly salary of $47,800. In Tuscaloosa, where the average rent is just over $1,500, it’s $61,000.
Interested in checking out details for the state and country yourself? You can do so right here.
Alabama’s rental prices are lower than the national average, and in some markets the average renter must earn at least six figures to avoid being classified as rent-burdened.
“This is an amazingly high number. I think most will find this figure shocking, especially given that U.S. median income is $71,500,” said UA Culverhouse College of Business and Alabama Center for Real Estate research associate Bennie Waller. “While the pace of rent growth is slowing around the country, housing affordability is coming more into focus.”
The current average U.S. rent of $2,048 per month requires an annual income of $81,934 to avoid being rent burdened, according to the index. These figures account only for rent and do not include utilities.
Average rents across the nation remain stubbornly high, according to the index. The average U.S. rent increased by 0.64% in May from April, significantly higher than growth rates during March and April that increased 0.46% and 0.58% respectively.
You can read more about the study right here.