Despite Oregon Minimum Wages Increases from 2016-2022 the Affordable Rent Gap Grew, and 94% of All Counties Have Gaps in 2022.

In my prior post I noted the Oregon minimum wage is increasing on July 1st.The increase is sufficient to pay for increased monthly rental costs of $39 in the Portland metro area and $26 in rural counties.

I thought it would be useful to go back and look at affordable rents at the full time minimum wage and HUD 1 BR FMR's for both 2016 and 2022 to see if the GAPS between affordable rents have increased or decreased.

The 2 page PDF table HERE and embedded below shows the results

In 2022 

• There were 2 (rural) counties [Harney and Wheeler] where the affordable rent at minimum wage was higher than the HUD 1 bedroom FMR. These counties had NO GAP-the full time minimum wage was high enough to pay rent at the HUD 1 BR FMR level. 
• In Harney county the affordable rent at the minimum wage was $75 HIGHER than the HUD 1 BR FMR. In Wheeler county the the affordable rent as the minimum wage was $41 HIGHER than the HUD 1 BR FMR. 
• There were 34 counties including all metropolitan counties, where there was a GAP between the affordable rent at minimum wage and the HUD 1 bedroom FMR. [This means that 94% of all counties in Oregon had a GAP in 2022].
• The largest gap [$810] was in Columbia and Yamhill  counties because they had the same HUD FMR as the other Portland metro counties, but a lower minimum wage. 
• In Clackamas, Multnomah and Washington counties within the UGB the gap was $745. 

From 2016-2022 

• There were 8 (rural) counties where the dollar gap decreased from 2016-2022.[Coos, Grant, Harney, Josephine, Klamath, Sherman, Wallowa, and Wheeler]. 
• There were 28 counites, including all metropolitan counties, where the dollar gap increased from 2016-2022.  [That's 78% of all counties].
• The largest increase in the gap [$296] was in Columbia and Yamhill counties because they had the same HUD FMR as the other Portland metro counties within the UGB, but a lower minimum wage. 
• In Clackamas, Multnomah and Washington counties within the UGB the gap increased by $231 from $514 to $745. 
• In Sherman county the increase in the affordable rent at the minimum wage vs the increase in the HUD 1 BR FMR was $145, moving from a gap of $162 in 2016 to $17 in 2022. 

NOTES

1. Use of 2 BR or higher bedroom size HUD FMR would have increased the gaps shown. 
2. HUD county level FMR's are published annually and are usually effective October 1. ACS data is used in those calculations except when FMR are established, after HUD review, by locally funded market surveys. [The Portland metro area FMR was established as a result of a market survey in 2022].
3. For LIHTC and other income based programs rent limits are a function of the median income and not market based rents. 

Originally created and posted on the Oregon Housing Blog. 

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