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Minimum Wage and Public Housing... Can You Afford It?

National Low Income Housing Coalition
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http://nlihc.org/sites/default/files/oor/OOR_2015_FULL.pdf
In no state can a minimum wage worker afford a ONE-BEDROOM rental unit at Fair Market Rent, working a standard 40-hour work week, without paying more than 30% of their income.

  It’s been a year since the U.S. Department of Housing and Urban Development mandated a flat rate increase for public housing. Some local housing officials thought it would price people out of the homes as HUD set rates based off of fair market value prices. 

According to a 2015 report by the National Low Income Housing Coalition, a full time worker earning minimum wage could not afford a one bedroom apartment anywhere in the U.S.  Mayfield Housing Authority’s Executive Director Don  Costello said the changes didn’t adversely affect them.

“No one wants to pay more for rent than they have to, but other than that it wasn’t really an issue.” Costello said.

At the same time, “There is more need than there is money available for housing and section 8.” Costello said.

Paducah Public Housing had projected vacancies in their office due to the increase, but only saw a small impact. Other locations like Murray and Bowling Green reported the fair market rates as too high. The Coalition’s report estimates it would take 72 work hours per week at minimum wage to afford a 2-Bedroom unit at fair market value.

All of the Public Housing offices said the demand for housing has stayed the same, basically there is always a waiting list.

While the Fair Market Rates vary depending on the demographic, Costello says “You’re going to see more of this happen because the federal government doesn’t have the money so they are going to push as much as they can onto any program participant, regardless of who is sponsoring it.” 

Nicole Erwin is a Murray native and started working at WKMS during her time at Murray State University as a Psychology undergraduate student. Nicole left her job as a PTL dispatcher to join the newsroom after she was hired by former News Director Bryan Bartlett. Since, Nicole has completed a Masters in Sustainable Development from Monash University in Melbourne, Australia where she lived for 2 1/2 years.
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