These Are America’s Poorest States, Ranked
Despite being part of the same nation, the average income and living standards vary significantly across the 50 states. Maryland boasts the highest median household income, starkly contrasting with the lower earnings in the poorest states. With a national poverty rate of 10.5% and median income at $68,703, the poorest states in America fall noticeably below these figures. This list spotlights the 25 states struggling the most financially, offering insights and tips to potentially elevate your earnings.
#25: Iowa
Median income per household: $60, 523
Rate of poverty: 11.2%
Iowa’s economy, heavily reliant on manufacturing and agriculture, has recently faced challenges. The 2019 trade war significantly affected corn and soybean demand, while unpredictable weather continues to pose risks to its agricultural sector.
Despite a seven-month drop in unemployment rates, a decrease in Iowa’s labor force to its lowest since 1977 suggests people are moving elsewhere for jobs. Nearly 70% of emigrants cite employment as their primary reason, per United Van Lines data.
#24: Nevada
Median income per household: $60, 365
Rate of poverty: 12.5%
Las Vegas’s allure often worsens the plight of the desperate, contributing to Southern Nevada’s severe homelessness issue, affecting over 6,500 individuals. Many battle addictions, showcasing the region’s deeper socio-economic struggles.
Nevada grapples with insufficient affordable housing and federal aid, lagging by $342 million in combating homelessness. With many relying on low-paying jobs in leisure and hospitality, the COVID-19 pandemic has exacerbated their economic hardships through plummeting tourism and gaming revenues.
#23: Kansas
Median income per household: $59, 597
Rate of poverty: 11.4%
Kansas shines as an affordable haven, boasting a median home value of $166,000, as per Zillow. But weighing the boon of low mortgage rates against scant job prospects is advisable for potential movers.
With Kansas’s minimum wage at the federal floor of $7.25, a bill aiming for $15 by 2027 is notable. Despite a low unemployment rate, over 100,000 children, 15% of them, grapple with poverty, highlighting socioeconomic challenges.
#22: Arizona
Median income per household: $58, 945
Rate of poverty: 13.5%
From 2015 to 2018, Arizona saw the highest drop in poverty levels in the U.S., yet it remains 3% above the national poverty rate. Educational setbacks for children there predict challenging future job markets, despite the older generation’s higher education levels.
Arizona is positioned towards the end of WalletHub’s ranking on school systems, highlighted by significant dropout rates, underwhelming standardized test performances, and a noticeable shortage of educators for available positions.
#21: Georgia
Median income per household: $58, 700
Rate of poverty: 13.3%
Despite its nickname, Georgia’s not the top peach producer; that’s California. However, its $73.3 billion agricultural sector immensely boosts its economy. While having the nation’s lowest minimum wage at $5.15, most workers earn at least $7.25.
In Georgia, 461,000 children live in poverty. Atlanta faces severe income inequality, ranking poorly among major cities. A simple money-saving tip for Georgians is using a free browser extension that scours for deals online, ensuring lower prices on purchases.
#20: South Dakota
Median income per household: $58, 275
Rate of poverty: 11.9%
In South Dakota, agriculture reigns supreme, generating $10 billion annually. Despite this, many residents work in lower-paying sectors such as administrative support and food services, earning between $23,800 and $33,490 on average.
Due to a scarcity of white-collar jobs, skilled workers often leave South Dakota for better prospects. However, for those with limited income, investing apps offer a chance to participate in the stock market affordably, enabling investments in giants like Amazon or Tesla.
#19: Maine
Median income per household: $57, 918
Rate of poverty: 10.9%
Maine, renowned as the Pine Tree State, leads globally in pulp-paper production due to its extensive forests. However, the digital age and foreign competition are cutting into this. Tourism has overtaken as Maine’s prime industry, yet COVID-19 had a devastating $2.3 billion impact in 2020.
Portland, Maine’s largest metropolis, saw homelessness surge to near-record levels in November, as many people lost temporary housing during the pandemic. The city grapples with high housing costs, with median home values surpassing $377,000.
#18: Michigan
Median income per household: $57, 144
Rate of poverty: 13%
Michigan, the cradle of the American auto industry, faced a 10.2% unemployment rate last year. Once dominated by General Motors, the automotive workforce has plummeted by 75% since 1995, reflecting a significant economic shift.
Beyond Detroit, Michigan’s rural areas battle economic difficulties, with Lake County being the poorest. The region grapples with limited high-paying jobs and a scant number of college graduates. For those unemployed, promptly securing affordable health insurance via comparison sites is crucial.
#17: Ohio
Median income per household: $56, 602
Rate of poverty: 13.1%
Once a manufacturing titan, Ohio has shifted towards a service-driven economy, despite this, cities like Youngstown and Dayton face challenges adapting, leading to job losses, population declines, and increased crime rates.
A Reddit user, joegee66, laments Ohio’s decline, highlighting closed factories and the predominance of temporary jobs, particularly in cities like Youngstown and Akron, painting a picture of widespread economic hardships.
#16: Indiana
Median income per household: $56, 303
Rate of poverty: 11.9%
Indiana, known for its affordability, faces a grim reality of stagnant wages, leading many to relocate for financial growth. Home to the highest rate of poverty-wage jobs in the Midwest, families experience a 32% hike in expenses versus a 6.3% income increase since 2009.
In Indiana’s key sectors – production, transportation, and administration – average salaries range from $35,480 to $39,750. Struggling residents often turn to credit cards, but a debt consolidation loan could offer relief by replacing multiple high-interest debts with a single, low-interest one.
#15: Idaho
Median income per household: $55, 785
Rate of poverty: 11.2%
Idaho thrives on agriculture, earning billions annually with potatoes leading the charge. Last year’s unemployment was a low 5.4%, yet only 0.8% work in agriculture, earning an average of $33,430.
Despite low wages, with a minimum wage of $7.25, Idaho faces rising housing costs due to new residents. The median home value has reached $339,238, marking a significant increase.
#14: Florida
Median income per household: $56, 660
Rate of poverty: 12.7%
Florida, famous for sunshine and retirees, is also known for its stark income gap. With 30 billionaires in Miami-Dade, the median wage languishes at $31,702, reflecting one of the nation’s widest income disparities.
Employment in Florida is dominated by low-wage roles in administration, sales, and food service, with mean wages ranging from $26,000 to $39,760. Saving money becomes a priority, with innovative apps offering cash back on everyday purchases.
