10 Big Cities Where Minimum Wage Still Can’t Cover Rent in 2025

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The federal minimum wage is currently $7.25 per hour — where it’s been stuck, with no adjustments for inflation, since 2009. But many states pay higher than this. Even in those states, however, being able to afford the average cost of rent in a major metro can be pretty much impossible on minimum wage income, even if you’re working full time. 

In a new study, GOBankingRates analyzed large U.S. cities with over 100,000 total population to find the places where a full-time minimum wage worker cannot afford rent.

10. San Francisco

• Average monthly rent cost: $3,368 
• Minimum wage: $18.67 
• Annual income for full-time minimum wage workers: $38,834
• Comfortable housing budget (30% of minimum wage income): $11,650 
• Housing budget deficit: -$28,770

9. Fontana, California

• Average monthly rent cost: $3,283 
• Minimum wage: $16.50 
• Annual income for full-time minimum wage workers: $34,320
• Comfortable housing budget (30% of minimum wage income): $10,296 
• Housing budget deficit: -$29,101 

8. Irvine, California

• Average monthly rent cost: $3,306
• Minimum wage: $16.50 
• Annual income for full-time minimum wage workers: $34,320
• Comfortable housing budget (30% of minimum wage income): $10,296 
• Housing budget deficit: -$29,379

7. Thousand Oaks, California

• Average monthly rent cost: $3,372
• Minimum wage: $16.50
• Annual income for full-time minimum wage workers: $34,320
• Comfortable housing budget (30% of minimum wage income): $10,296
• Housing budget deficit: -$30,167

6. San Mateo, California

• Average monthly rent cost: $3,464 
• Minimum wage: $17.95 
• Annual income for full-time minimum wage workers: $37,336
• Comfortable housing budget (30% of minimum wage income): $11,201 
• Housing budget deficit: -$30,367

5. Cambridge, Massachusetts

• Average monthly rent cost: $3,326 
• Minimum wage: $15
• Annual income for full-time minimum wage workers: $31,200
• Comfortable housing budget (30% of minimum wage income): $9,360 
• Housing budget deficit: -$30,553

4. New York City

• Average monthly rent cost: $3,489 
• Minimum wage: $15.50 
• Annual income for full-time minimum wage workers: $32,240
• Comfortable housing budget (30% of minimum wage income): $9,672 
• Housing budget deficit: -$32,193 

3. Boston 

• Average monthly rent cost: $3,495 
• Minimum wage: $15
• Annual income for full-time minimum wage workers: $31,200
• Comfortable housing budget (30% of minimum wage income): $9,360 
• Housing budget deficit: -$32,584 

2. Carlsbad, California

• Average monthly rent cost: $3,640 
• Minimum wage: $16.50
• Annual income for full-time minimum wage workers: $34,320
• Comfortable housing budget (30% of minimum wage income): $10,296
• Housing budget deficit: -$33,383 

1. Ann Arbor, Michigan 

• Average monthly rent cost: $3,347 
• Minimum wage: $10.56
• Annual income for full-time minimum wage workers: $21,965  
• Comfortable housing budget (30% of minimum wage income): $6,589 
• Housing budget deficit: -$33,573 

Methodology: For this study, GOBankingRates analyzed large U.S. cities with over 100,000 total population to find the places where a full-time minimum wage worker cannot afford rent. First, the 346 cities with a total population over 100,000 people were identified using the U.S. Census American Community Survey along with the population ages 65 and over, total households, and household median income were also sourced. The average single family home value was sourced from Zillow Home Value Index. The average rental cost was sourced from Zillow Observed Rental Index for February 2025. The minimum wage for each state was sourced from the Economic Policy Institute and minimumwage.com for minimum wage requirement by city. Using a 40-hour work week, and 52 weeks per year, the estimated annual income can be calculated. Using the 50/30/20 finance rule that states that no more than 30% of income should be used for housing, the housing budget can be calculated with 30% of the estimated annual income. The difference in the housing budget and the average rental cost can be calculated to show the housing cost deficit. The cities were sorted to show the largest deficit first. All data was collected on and is up to date as of April 7, 2025.

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