Written by The Business Journal Staff
Using U.S. Census data from last year, Abodo looked at cities where renters are paying well above the recommended 30-percent income limit on housing.
“According to the Department of Housing and Urban Development, households that spend more than 30% of their income on rent are “housing-cost burdened,” according to a news release. “And the heavier that burden gets, the more difficult it is to afford food, utilities, and other necessary living expenses.”
Nearly half of all U.S. tenants face such a cost burden, according to estimates.
Fresno is No. 7 on the 19-city list for cost-burdened renters, with 57.75 percent percent of renters paying more than 30 percent of their income on rent. The Stockton-Lodi region comes in at 56.84 percent for the No. 9 spot, while Modesto ranks 16th with 54.37 percent.
The top cost-burdened renter city is Miami with 63.89 percent, followed by Honolulu at 59.24 percent and Daytona Beach, Florida at 58.8 percent.
Nearly half of the cities on the list are in California, where rental costs are projected to keep rising through 2018.
The majority of the cost-burdened tenants are making less than $20,000 a year, followed closely by the $20,000 to $34,999 income range. In Fresno, 51.98 percent of cost-burdened renters are making less than $20,000.
In addition, 93.46 percent of renters making less than $20,000 in Fresno spend more than 30 percent on rent.
According to the study, 21.92 percent of cost-burdened tenants in Fresno could be covered by federal housing subsidies.