The Yawning gap between the minimum wage and fair market rent

Did you know that the national minimum wage has not changed since 2009? While 34 U.S. states have higher minimum wages, the federal rate as of 2026 is still $7.25 per hour. This means today’s full-time working class cannot afford a modest two-bedroom rental home at Fair Market Rent anywhere in the country.

Ohio’s minimum wage is $11.00 per hour for non-tipped employees, and $5.50 per hour for tipped employees. This adjustment represents a 2.8% increase from the 2025 rates of $10.70 per hour for non-tipped employees, and $5.35 for tipped employees (Ohio Department of Commerce, 2026).

According to the Ohio Association of Community Action Agencies Self-Sufficiency Calculator, using myself and my granddaughter as an example, I would need an hourly wage of $31.72 per hour or $66,998.01 annually to live and care for her sufficiently in Franklin County. The average two-bedroom rental property in Franklin County is $1,409 to $1,450 per month. This represents more than one-third of the monthly household expenses even based off of the self-sufficiency standards.

The National Low-Income Housing Coalition released its annual report, “Out of Reach 2023: The High Cost of Housing,” on June 14, 2025. The report highlights the difference between the wages people earn and the price of modest rental housing in every state, county, metropolitan area, and combined non-metropolitan areas in the nation. Housing is out of reach for workers across a range of occupations and wage levels. Nearly 50% of wage earners cannot afford a modest one-bedroom rental home at the fair market rate while working one full-time job. More than 60% of wage earners cannot afford a modest two-bedroom rental home while working one full-time job.

Local Community Action Agencies (CAAs) are playing a pivotal role in narrowing the wage gap and addressing disparities between wages and fair market rent by developing strong, community-centered workforce systems.

Through strategic collaborations with state agencies, labor departments, and workforce boards, CAAs align training programs with high-demand industries such as healthcare, construction, clean energy, information technology, and advanced manufacturing. These partnerships ensure that training leads directly to employment opportunities that offer sustainable wages and career mobility.

Many Ohio’s CAAs are expanding access to:

• Registered apprenticeships that combine classroom instruction with paid on-the-job training

• Paid work experience programs that allow participants to earn income while building skills

• Industry-recognized credentialing pathways that increase earning potential

• Supportive services such as childcare, transportation, and financial coaching to reduce barriers to employment

By integrating workforce development with housing stability, CAAs help families secure employment that meets or exceeds local fair market rent thresholds. At the same time, they advocate for policies that promote living wages, equitable hiring practices, and expanded access to career pathways for underserved populations.

Through innovation, cross-sector partnerships, and community-driven strategies, CAAs are not only addressing immediate income gaps but also building long-term economic mobility for individuals and families.