Texas Hasn't Raised Its Minimum Wage in 17 Years: 7 US Cities Where It Can't Cover a 1-Bedroom

Texas has not increased its minimum wage for 17 years, leaving workers earning the federal minimum of $7.25 an hour struggling to keep pace with rising housing costs.

New research from Best Interest Financial found Dallas and Austin among the seven US cities where a full-time worker earning the minimum wage cannot earn enough in a month to rent a typical one-bedroom apartment. The findings come as debate over stagnant wages resurfaced online, with a recent post on the issue attracting thousands of views and comments.

The study compared local minimum wages with US Department of Housing and Urban Development fair market rent data across the country's 50 largest cities. While housing is generally considered affordable when it accounts for no more than 30% of gross income, the analysis found minimum wage workers exceeded that threshold in every city examined.

Dallas and Austin Rank Among the Least Affordable

Dallas recorded one of the widest wage-to-rent gaps in the study. According to Best Interest Financial, the average one-bedroom rent consumes about 142% of the monthly income earned by someone working full-time on the minimum wage. A worker earning $7.25 an hour brings home roughly $1,160 a month before tax, while the average one-bedroom rental costs around $1,416.

Austin also ranked among the least affordable cities for minimum wage earners. Although rents have eased from pandemic-era highs, a typical one-bedroom apartment still averages about $1,417 per month, requiring around 135% of a minimum wage worker's gross monthly income. Despite attracting major employers and thousands of new residents over the past decade, particularly in technology, finance, and corporate services, pay for workers at the bottom of the wage scale has remained unchanged.

Five Other Cities Face Similar Pressures

Texas is not alone. The report identified five other large US cities where minimum wage workers face particularly severe rental affordability challenges:

• Atlanta, Georgia
• Nashville, Tennessee
• Raleigh, North Carolina
• Charlotte, North Carolina
• Philadelphia, Pennsylvania

Each relies on the federal minimum wage of $7.25 an hour or an equivalent state rate. Philadelphia recorded the largest shortfall. The average one-bedroom apartment rents for approximately $1,856 per month, meaning housing alone consumes around 160% of a full-time minimum wage income. Atlanta ranked close behind, where the average one-bedroom rental costs about $1,660, or roughly 143% of a worker's monthly earnings.

Online Community Says the Wage No Longer Matches Reality

The affordability gap has also sparked widespread discussion online. In a post on r/povertyfinance titled 'Texas Minimum Wage has been $7.25 an hour for 17 years and counting,' many members of the online community argued that the state's minimum wage no longer reflects the cost of living.

Several commenters said that $7.25 an hour is no longer enough to support even basic living expenses. One wrote, '$7.25 hasn't been a living wage in Texas this entire century, let alone anywhere in USA.' Another argued that the state's wage policy favours businesses over workers, commenting, 'Texas is pro business not pro people.' Others criticised the prolonged lack of change, with one remarking, 'Because exploiting labor is how you get rich.'

Many participants also noted that although numerous employers now pay above the legal minimum because of labour shortages, the statutory rate still matters. They argued that it sets the baseline for pay in many lower-wage industries and reflects broader concerns about whether earnings have kept pace with rising housing, food, transport, and everyday living costs.

Why the Numbers Matter

The federal minimum wage has remained unchanged since July 2009. During that time, rents have climbed substantially across much of the United States, particularly in fast-growing metropolitan areas where population growth and increased demand have pushed housing costs higher.

Best Interest Financial concluded that even in cities with higher state minimum wages, a single full-time minimum wage worker would still struggle to meet the commonly recommended affordability benchmark of spending no more than 30% of gross income on housing. For workers in states that continue to follow the federal minimum, including Texas, the gap between earnings and rental costs remains especially pronounced.