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.
#13: Missouri
Median income per household: $55, 461
Rate of poverty: 12.9%
Missouri confronts economic woes similar to the Rust Belt, marred by deindustrialization and dwindling domestic demand. Not only do low wages affect service workers but also state lawmakers, who were the lowest paid nationwide in 2017.
In February 2021, after enduring low salaries, lawmakers secured a 5% pay increase. Tragically, 20% of Missouri’s children reside in poverty, with figures soaring to 25% in counties such as Audrain and Randolph, highlighting the state’s deep-rooted economic issues.
#12: Montana
Median income per household: $54, 970
Rate of poverty: 12.6%
Montana, once celebrated as ‘The Treasure State’ for its mineral wealth, now faces dwindling coal production. Despite a 26% surge in median rent since 1990, incomes lag behind. A striking 68% of low-income renters, mainly in retail, food service, and healthcare, allocate over 30% of their wages to rent, underscoring the affordability crisis.
The economic landscape is challenging, as one in four Montana jobs pays under the poverty threshold of $24,300 for a family of four. In such tight financial conditions, residents find solace in augmenting their income through online surveys and video viewing for gift cards.
#11: North Carolina
Median income per household: $54, 602
Rate of poverty: 13.6%
North Carolina, known for its swift economic advancement in tech and finance, still faces challenges in maintaining middle-income jobs while low-paying jobs’ wages barely cover living expenses, as reported by CNBC.
Discussions on Reddit, such as TheRealirony’s observation, highlight the minimal difference between wages in low-paying and entry-level tech jobs in North Carolina, with some finding service jobs more lucrative due to tips.
#10: Tennessee
Median income per household: $53, 320
Rate of poverty: 13.9%
Despite the federal wage stagnation since 2009, Tennessee’s living expenses have climbed, marking an 18% rise in goods’ costs. Nashville’s housing market, with median home values at $313,000, sharpens the economic divide, intensifying struggles for the less affluent.
Tennessee grapples with significant poverty, witnessing one-fifth of its children in impoverished conditions, a state poverty rate twice the national average. The economic disparity underscores urgent issues needing resolution.
#9: South Carolina
Median income per household: $53, 199
Rate of poverty: 13.8%
South Carolina, known for its stunning beaches like Myrtle Beach, attracts millions, yet grapples with rising income inequality. Despite its allure, many locals can’t afford the leisure its beauties offer.
The state ranks low for family-raising, hindered by affordability, on WalletHub. It struggles with one of the nation’s highest eviction rates, due to soaring housing prices against stagnant wages, setting the median home value at $204,967.
#8: Oklahoma
Median income per household: $52, 919
Rate of poverty: 15.2%
Amid the COVID-19 crisis and plummeting oil prices, Oklahoma faced a significant budget shortfall in April 2020, echoing similar financial difficulties experienced in 2016 and 2017 due to revenue failures.
Oklahoma struggled with national leads in education cuts, expulsion rates, and incarceration in 2017, alongside a violent crime rate 16% above the national average, highlighting its deep-rooted challenges.
#7: Kentucky
Median income per household: $50, 589
Rate of poverty: 16.3%
Kentucky, famed for its Kentucky Derby, sees a stark contrast toward its eastern regions. Once thriving coal communities now face immense hardships, with places like Beattyville suffering from high poverty, limited jobs, and a prevalent drug crisis.
In January, Kentucky saw 14% of residents rely on SNAP for food support, a figure that skyrockets to 39% in Owsley County, highlighting the significant economic disparities within the state.
#6: Alabama
Median income per household: $50, 536
Rate of poverty: 15.5%
With the hope ignited by new steel and coal projects in Alabama, despite past downsides, experts suggest saving 3-6 months’ expenses in a high-yield account. Alabama’s average unemployment was 6.1%, but wages, poverty, and inequality issues remain dire.
Alabama faces challenges in education, hindering future prospects. Ranked lowest by US News for student achievement and school funding, the state struggles, exacerbating the difficulty of overcoming economic and social hurdles.
#5: New Mexico
Median income per household: $49, 754
Rate of poverty: 18.2%
New Mexico faces economic hardships with tourism and oil and gas demand dwindling recently. With an 8.6% average unemployment rate last year and high child poverty, 25% of children live below poverty, in stark contrast to the national 17%.
Local insight suggests concessions attract businesses, but New Mexico grapples with an untrained workforce. Portia highlights on Reddit the balance between lower wages and the deterrent of training costs, complicating the state’s economic landscape.
#4: Louisiana
Median income per household: $49, 469
Rate of poverty: 19%
Louisiana ranks as the fourth poorest U.S. state, grappling with an 8.8% unemployment rate, over 25% of children living in poverty, and a severe opioid crisis. Despite incomes above the poverty line, one-third of households can’t afford basic living costs, according to the Louisiana Association of United Ways.
To live comfortably in Louisiana, a family of four needs $69,732 annually. Yet, the state’s median household income falls short, remaining below $50,000, highlighting the significant financial challenges many residents face.
#3: Arkansas
Median income per household: $47, 597
Rate of poverty: 16.2%
Previously known as “The Land of Opportunity,” Arkansas witnessed a boom post-WWII but now ranks among the poorest states. Yet, its agricultural prowess remains unmatched, contributing $21 billion in 2019 with rice, catfish, and cotton as top crops.
Arkansas’ agriculture has felt the sting of the recent trade tussle with China, leading to a slump in exports, dropping prices, and resulting in numerous bankruptcies. Advents in technology, like AI job boards, offer novel employment paths amidst these economic challenges.
#2: West Virginia
Median income per household: $46, 711
Rate of poverty: 16%
Since the 1960s, the decline of coal mines severely impacted West Virginia’s job market, driving many to leave. Persistently low energy prices and educational shortcomings continue to stymie economic progress, with a significant number of children living in poverty.
The challenges in West Virginia, exacerbated by its historical disadvantages, include a stark education problem. Long commutes for rural students and the affordability of housing amidst economic stagnation highlight complex issues residents face, despite lower living costs.
#1: Mississippi
Median income per household: $45, 081
Rate of poverty: 19.6%
Mississippi struggles financially, with its residents earning the lowest median household income in the U.S. at just over $45,000. Additionally, 20% live below the poverty line—nearly double the national average, reflecting deep-seated economic challenges.
The state’s primary industries—agriculture and forestry—fail to spur significant job growth, keeping the minimum wage at the federal minimum. Despite being a key producer of cotton, catfish, and sweet potatoes, Mississippi’s economic advancement is sluggish.
