What Is the Median Household Income for the Lower Middle Class in 2024?

“The middle class is shrinking.” You may have heard this phrase repeated on the news or during conversations with friends.

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The thing is — it’s true. According to the Pew Research Center, the share of American households that are considered middle class fell from 61% in 1971 to 50% in 2021. There has been a gradual shift away from the middle class and toward the two extremes over the past five decades.

If you’re wondering whether your household income falls into the lower-middle-class range and what factors affect your class mobility, keep reading.

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What’s Considered Lower Middle Class for Households?

According to the Pew Research Center, middle-income households earn between two-thirds and double the median U.S. household income. The latest figures from the U.S. Census Bureau show that the national median household income is $74,580.

So based on the Pew Research Center’s definition, middle-class household incomes range from approximately $49,715 to $149,160. Different people have different definitions of how to separate the lower middle class from the rest of the middle class, but if we consider it to be the bottom 25% of the middle class, then it would range from $49,715 to $62,147.

To summarize:

• U.S. median household income: $74,580
• Median middle-class household income: $99,437
• Median lower-middle-class household income: $55,971

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What Factors Determine Whether Your Household Falls Into the Lower-Middle-Class Income Range?

It’s not always as simple as looking at the numbers when it comes to determining whether your household is classified as middle class. While some people view class in terms of economic resources, others may see it as more of a reflection of education level, occupation or cultural mindset.

Here are some of the factors that affect socioeconomic class categories.

Cost of Living

Since urban centers typically have a higher cost of living than rural or suburban areas, households based in a major city would need to earn a higher income to sustain the same standard of living as those in less populated areas.

It also varies according to state. In Mississippi, for example, a $35,323 household income would be considered middle class. In contrast, households in Maryland need to bring in at least $65,641 to be considered middle class.

Education Level

Education is a significant indicator of income level. According to U.S. Census data, the median income for households with no high school diploma was $34,850. In contrast, households with at least one bachelor’s degree or higher had a median income of $118,300.

Household Size

The median household income figures from the Pew Research Center are adjusted for a three-person household. If you have a different number of people living in your household, then the way your income affects your standard of living will change.

For instance, a family of four living in a rural town could have a higher standard of living than a similar family living in a major city, based on the cost of goods and services in their area.

Final Take

If your household income is approximately between $30,000 and $60,000, then you would likely be considered lower middle class based on economic resources. But since income is just one aspect of socioeconomic class, the actual amount of income you need would also depend on factors like your household size and the cost of living in your area.

This article originally appeared on GOBankingRates.com : What Is the Median Household Income for the Lower Middle Class in 2024?