With cost of living continuing its inexorable climb across much of the United States, the amount of cheap major cities is diminishing more and more. Wage increases haven’t kept pace with living expenses, causing median incomes to increasingly lose purchasing power. Worse, of course, is the situation of those working for and living on minimum wages.
Cheaper cities might be getting scarcer, but they haven’t totally vanished. According to a new report by GOBankingRates, which analyzed 100 of America’s largest cities in terms of living costs, minimum wages and livability, there are actually more than a dozen cities where you can make a minimum wage lifestyle work fairly well. Let’s take a look at these rarities.
How Much Is Minimum Wage?
The federal minimum wage 2018 is $7.25 an hour. When examining minimum wage by state 2018, there are 14 states whose rate is the same as federal; 29 states plus the District of Columbia pay more than the federal minimum wage; two states pay less; and five states have no minimum wage requirement. Take a look at the heat map below, or check out the interactive data visualization version of it for an even better look.
The bulk of minimum wage levels are determined on the federal and state-level. However, many cities, localities and similar have passed laws to change their minimum wage to higher levels, such as Chicago.
Cities With the Highest Minimum Wage 2018
Washington, D.C. currently has the highest minimum wage at $13.25 an hour, according to the United States Department of Labor. Although Illinois’ state minimum wage is $8.25, Chicago’s minimum wage is $12, which went into effect July 1, 2018, according to the Office of the Mayor of the City of Chicago.
The Seattle minimum wage, $11.50, came into effect Jan. 1, 2018. But take note of some key details. The $11.50 applies if: (1) your employer is “small,” aka 500 or fewer employees, (2) pays towards your individual employee medical benefits, (3) and/or if you earn tips. With no tips or benefits, minimum wage increases to $14. And with “large” employers, those with 501 or more employees, they pay out $15 an hour if you receive medical benefits, and $15.45 if you don’t, according to the Seattle Office of Labor Standards.
In terms of minimum wage, California has a state rate of $11 per hour. This means several California cities rank among the cities with highest minimum wage 2018. But while $11 an hour is solid compared to other states, with California’s notorious cost of living, maintaining a minimum wage lifestyle there is much more difficult.
Moving over to the East Coast, Boston’s $11 an hour also ranks up with the cities with highest minimum wage. By Jan. 1, 2019, it’ll rise to $12, then $12.75 on Jan. 1, 2020, and on up until it reaches $15 in January 2023.
Five Cities That Spend the Least Money on Necessities
In most of the country’s biggest cities, you’re going to need follow a strict minimum wage budget plan in order to get by. Fortunately, you can still find several places — from old industrial centers like Buffalo, to rising cities in the Southwest — where the price of life’s necessities can be covered by minimum wage.
Below are the five cities where the cost of necessities, including annual rent, food, transportation, utilities, etc., is most affordable:
| Rank | City | Annual cost of necessities |
| 5 | Tucson, Ariz. | $13,100 |
| 4 | Fort Wayne, Ind. | $13,016 |
| 3 | Tulsa, Okla. | $13,008 |
| 2 | El Paso, Texas | $12,569 |
| 1 | Toledo, Ohio | $12,417 |
The minimum wage in Ohio is $8.30 an hour: higher than the 2018 federal minimum wage, but a far cry from California’s $11 or Washington state’s $11.50. However, Toledo is one of the cheapest cities in America, boasting a one-bedroom median rent of $475, according to Zillow.
The Top-Five Best Cities to Live on Minimum Wage
So, if you’re making the minimum wage, it’s not all bad news. Broken down by median rent for a one-bedroom apartment, annual cost of necessities, minimum wage by state, and approximate annual minimum wage, below you can see the five best cities to live the minimum wage lifestyle comfortably:
5. Phoenix, Ariz.
- Median rent one-bedroom: $1,000
- Annual cost of necessities: $17,860
- Minimum wage Arizona: $10.50
- Annual minimum wage: $21,840
4. Mesa, Ariz.
- Median rent one-bedroom: $884
- Annual cost of necessities: $16,391
- Minimum wage Arizona: $10.50
- Annual minimum wage: $21,840
3. Fresno, Calif.
- Median rent one-bedroom: $750
- Annual cost of necessities: $15,174
- Minimum wage California: $11
- Annual minimum wage: $22,880
2. Tucson, Ariz.
- Median rent one-bedroom: $635
- Annual cost of necessities: $13,100
- Minimum wage Arizona: $10.50
- Annual minimum wage: $21,840
1. Bakersfield, Calif.
- Median rent one-bedroom: $700
- Annual cost of necessities: $14,796
- Minimum wage California: $11
- Annual minimum wage: $22,880
These are only just the top-5 cities, whereas the full report has more than 20 cities across the U.S. where you can live comfortably on minimum wage. The full study, though, also has all the worst places too: Cities with the lowest minimum wages and highest costs of living.
Check out the full report on both the best and the worst cities to live on minimum wage.
