12 Most Affordable And States For Middle Class Individuals
“Best states for middle class”
The middle class has been gradually dwindling as wages stagnate, income inequality rises, and inflation soars. However, there are still several states in the U.S. where, generally speaking, a middle-class paycheck may go fairly far.
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Middle-Level-Friendly Places In The US
For the best states for middle class individuals, we used the OECD’s definition of “middle class,” which ranges from 75% to 200% of a region’s median income, to identify these states. Then, using data from the Current Population Survey of the Census Bureau, we estimated middle class income ranges for each state.
We additionally used data from LendEDU, which examined anonymized aggregated data from 150,000 Truebill users, to determine average student loan payments, U.S. News & World Report’s breakdown of car ownership by geography to determine monthly car payments, and Experian’s 12th Annual State of Credit Report of total average credit card debt by state to determine monthly credit card payments. We also discovered average monthly mortgage payments from Zillow’s Home Value Index to a 30-year fixed mortgage.
The annual income for each state was then determined to be middle class by estimating debt payments as no more than 36% of income, which is the upper limit advised by financial counselors. Below are the best states for middle class individuals in the United States.
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12 Most Affordable And Best States For Middle Class Individuals
12. Missouri
•Annual income needed to be “middle class”: $75,294.00
•Mortgage needed for average home: $1,537.00
•Monthly car costs: $461.50
One of the best states for middle class, in Missouri, while the middle class begins at just over $75,000, the average state income falls short by over $27K, at $47,695.50.
11. Louisiana
•Annual income needed to be “middle class”: $73,389.56
•Mortgage needed for average home: $1,435.00
•Monthly car costs: $520.67
Louisianans also have an average monthly student loan cost of $192.62 and a monthly credit card payment of $53.40
10. Indiana
•Annual income needed to be “middle class”: $72,439.56
•Mortgage needed for average home: $1,478.00
•Monthly car costs: $447.42
In Indiana you need over $72,000 per year to be middle class, but the median annual income (on the low end) is almost $20,000 less than that at $52,642.50.
9. Kansas
•Annual income needed to be “middle class”: $71,318.56
•Mortgage needed for average home: $1,384.00
•Monthly car costs: $501.67
Best states for middle class – In Kansas, the middle class is making a car payment that’s almost one/third their mortgage, as well as a $200.54 monthly student loan payment and a $53.35 monthly credit card payment.
8. Alabama
•Annual income needed to be “middle class”: $70,849.22
•Mortgage needed for average home: $1,400.00
•Monthly car costs: $469.67
While you need to earn almost $71,000 per year to qualify as middle class, the high end of median earners make more than $113,858.00 per year in Alabama.
7. Ohio
•Annual income needed to be “middle class”: $69,147.89
•Mortgage needed for average home: $1,415.00
•Monthly car costs: $407.67
Best States for middle class – In Ohio, you may need to earn nearly $70,000 per year to qualify as middle class, but median earners on the low end are only earning about $47,000 per year. Median earners on the high end can easily afford their bills, however, as they are earning over $125,000 per year.
6. Kentucky
•Annual income needed to be “middle class”: $68,247.22
•Mortgage needed for average home: $1,308.00
•Monthly car costs: $492.67
Kentucky residents in the middle class are better positioned to afford their bills, including a monthly student loan payment of almost $200, and a monthly credit card payment of nearly $50.
5. Iowa
•Annual income needed to be “middle class”: $66,219.78
•Mortgage needed for average home: $1,282.00
•Monthly car costs: $453.58
In Iowa the median earner (on the low end) isn’t far from qualifying as middle class, at $54,321.75 per year.
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4. Oklahoma
•Annual income needed to be “middle class”: $64,845.44
•Mortgage needed for average home: $1,221.00
•Monthly car costs: $474.83
One of the best states for middle class in the US. In Oklahoma, middle class earners can also expect to pay a monthly student loan payment of $195.25 and a monthly credit card payment of $54.28.
3. Arkansas
•Annual income needed to be “middle class”: $63,014.78
•Mortgage needed for average home: $1,199.00
•Monthly car costs: $440.83
In Arkansas, while the low-end median earner is only making $38,088.00, which is almost $24,000 less than the amount to qualify as middle class, the high-end median earner is averaging $101,568.00 per year.
2. Mississippi
•Annual income needed to be “middle class”: $62,294.33
•Mortgage needed for average home: $1,117.00
•Monthly car costs: $506.25
In Mississippi, the gap between middle class and median earner is a gap of over $27,000. Still middle-class earners are paying additional bills, such as a monthly student loan cost of $198.17 and a monthly credit card bill of $47.41.
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1. West Virginia
•Annual income needed to be “middle class”: $54,011.22
•Mortgage needed for average home: $929.00
•Monthly car costs: $443.42
West Virginia, one of the best states for middle class individuals, you don’t even have to make it much past $54,000 to be considered middle class. And mortgage and car costs here are a bit lower than the rest of the states on this list, but monthly student loan costs are about as high as the rest of the states, at $199.48, and a monthly credit card payment of $48.44.
Other States That Are Also More Affordable For The Middle Class
Rounding out spots 13 through 25, include the following for best states for middle class:
•Nebraska
•Michigan
•Wisconsin
•Pennsylvania
•Illinois
•North Dakota
•South Dakota
•New Mexico
•South Carolina
•Tennessee
•Georgia
•Alaska
•Minnesota
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