Every year, the National Low Income Housing Coalition (NLIHC) releases its Out of Reach report—an eye-opening look at what it actually costs to rent a modest apartment in America. The 2025 edition confirms what many Missourians already know from experience: affordable housing is increasingly out of reach for working people across the state.
At the national level, the Housing Wage—the hourly wage a full-time worker needs to afford a modest two-bedroom rental without spending more than 30% of their income on housing—is now $33.63. That’s nearly three times the federal minimum wage. In Missouri, the numbers are better than the national average—but not by much.
Missouri at a Glance: Housing Costs vs. Wages
In Missouri, the 2025 Housing Wage for a two-bedroom apartment is $21.61 per hour. To afford a one-bedroom, renters must earn $17.02 per hour.
Compare that to the state minimum wage of $13.75 per hour. A full-time minimum-wage worker would need to work:
- 52 hours per week to afford a one-bedroom apartment
- 63 hours per week to afford a two-bedroom apartment
The Human Toll: Who’s Most Affected?
In Missouri, nearly 23% of renters fall into the category of Extremely Low Income (ELI)—meaning they earn 30% or less of the area median income (AMI). An additional 41% fall under the “Very Low Income” category, earning between 30–50% of AMI.
These households are the most vulnerable to becoming severely cost-burdened—spending more than half their income on rent. When that much of your paycheck goes to housing, there’s little left for food, healthcare, transportation, or savings.
The result? A precarious balancing act where one unexpected expense—a car repair, a medical bill, a cut in work hours—can lead to eviction or homelessness.
Missouri’s Metro Areas: Pressure Points
While statewide averages paint a broad picture, the situation in Missouri’s urban centers reveals even deeper strains.
In Kansas City and St. Louis, fair market rents tend to be higher than the state average. That pushes local Housing Wages even further out of reach for workers in education, healthcare support, food service, and other essential industries.
To put it into perspective:
- Fair Market Rent (FMR) for a 1-bedroom: $885 per month
- FMR for a 2-bedroom: $1,083 per month
To afford that two-bedroom apartment without being rent-burdened, a worker would need to earn over $21 per hour—well above what most retail, hospitality, and service workers make.
That affordability gap doesn’t just affect renters. It weakens entire communities by pushing out the very people who keep cities running.
A System Under Strain: Assistance Falls Short
Missouri needs more than 102,000 additional rental homes that are affordable and available to ELI households. Right now, only 45 homes exist for every 100 of those families.
Even worse, many who qualify for assistance never receive it. Nationally, only 1 in 4 eligible renters get the help they need—either because of funding limitations or bureaucratic hurdles.
And that help is in jeopardy. Proposed cuts to federal housing programs could remove nearly $1 billion from Midwest housing budgets. Though this is not as high as originally proposed, it will strain a program that is already at capacity – currently only 1 in 4 households that qualify for federal rental assistance receive the help they need.
Missouri is at risk of losing key resources needed to preserve and expand affordable housing. And despite having moderate rent levels compared to other states, Missouri ranks 39th in the U.S. for rental affordability and has the largest one year rental increase in the nation from 2023-2024. The math simply doesn’t work for too many families.
Solutions in Reach: What Can Missouri Do?
Fortunately, there are clear, evidenced-based solutions on the table. Missouri—and the country—can take concrete steps to close the affordability gap:
1. Expand Rental Assistance
Missouri can work with federal programs to ensure housing vouchers are fully funded and available to more families in need.
2. Build and Preserve Affordable Homes
The state must invest in developing deeply affordable rental housing. This includes:
- Supporting an increase in funding to the Missouri Housing Trust Fund (MHTF)
- Strengthening the Low-Income Housing Tax Credit (LIHTC) program
- Preserving the affordable housing stock already in place
3. Prevent Evictions
Emergency rental assistance, mediation services, and tenant protections can prevent homelessness before it starts. Eviction prevention helps people and saves communities money at the same time
4. Reform Zoning and Land Use
As Mallory discussed here, revising outdated zoning laws that have historically limited the construction of multi-family housing, accessory dwelling units (ADUs), and transit-oriented development is a step local governments can take to increase the supply of affordable housing.
A Call to Action for Missouri
If we want to build a Missouri where families can thrive, we must make affordable housing a top priority. Housing is not just about shelter—it’s about stability, opportunity, and dignity.
Here’s what you can do:
- Contact your lawmakers. Urge them to protect and expand HUD funding, LIHTC, and rental assistance programs.
- Join the campaign to increase funding to the Missouri Housing Trust Fund. Because there has been no increase to the source of funding for the MHTF, in 2025, 75% of requests for projects that prevent evictions, end homelessness, and construction of new affordable rental homes for lower income households have been denied.
- Use your voice. Share your story if you’re a renter struggling with affordability—or support those who are. Contact [email protected] to discuss sharing your perspective with us.
Conclusion: Missouri Can Do Better
The 2025 Out of Reach report is clear: renting a modest home in Missouri requires more than many workers earn. With a Housing Wage of $21.61 per hour, we’re asking everyday Missourians to work unsustainable hours just to keep a roof over their heads.
But housing affordability isn’t an unsolvable crisis—it’s a matter of political will and public investment. Missouri has the tools, the data, and the urgency. Now we need action.
Affordable housing is the foundation of thriving communities. Let’s make it a reality—for everyone.
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