Minimum Wage Earners in Alabama Need to Work 96 Hours Weekly for 1 Bedroom Rental, Per Study

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(Alabama)- The 2023 Salvation Army Annual Report highlights the persistent issue of homelessness in Alabama. According to the report, Salvation Armies throughout the state aim to make a "difference in the lives of our neighbors with a compassionate strategy of opportunity and hope. We respond to crisis moments by meeting basic human needs wherever they might be through disaster relief, financial assistance, food security, and emergency/transitional shelter.

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Homelessness in Alabama: On any given night in Alabama, approximately 3,752 individuals are without a home. The state's poverty rate stands at 16.2%, with 23% of children experiencing food insecurity. Additionally, 41% of families struggle to meet basic needs. The report also states that the Salvation Army provided 373,000 meals and groceries to support families in need and served 10,000 families over the past year.

Alabama Minimum Wage History: Alabama's state minimum wage rate is $7.25 per hour, which matches the current Federal Minimum Wage (FMW) rate, and the state chooses not to have a 'state specific minimum wage' as others but instead follow the guidelines of the FMW rate. This wage applies to most employees in the state, with limited exceptions such as tipped employees, some student workers, and other exempt occupations. The last change to the Alabama minimum wage occurred in 2008 when it was raised by $0.70 from $6.55 to $7.25.

Renting in Alabama Compared to Annual Salaries: Alabama faces significant challenges in housing affordability. Out of 1,933,150 total households, 585,358 are renters, making up 30% of the population.

A study by the National Low Income Housing Coalition reported Alabamians earning the minimum wage of $7.25 hourly would need to work 96 hours weekly to afford a modest 1-bedroom rental home at Fair Market Rent.

The concept of "housing wage" refers to the hourly wage needed to afford rent without spending more than 30% of income on housing. In Alabama, the housing wage varies by unit size: $15.90 for a studio, $17.39 for a one-bedroom, $20.88 for a two-bedroom, $26.92 for a three-bedroom, and $30.63 for a four-bedroom.

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Zip Recruiter recently reported that the average salary of Alabamians in 2023 was $49, 274, which averages to $24 hourly.

The highest paid career-driven individuals in Alabama are those who become anesthesiologists. Those Alabamians can rack in $386,752 annually, averaging $185.94 hourly.

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