By admin 
When choosing where to live in California, several factors can shape your decision — including your proximity to grocery stores, pharmacies and schools.
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Another key aspect to consider is cost.
Rental prices can vary significantly depending on the area you are planning to live.
The National Low Income Housing Coalition recently calculated how much renters need to earn to afford a “modest” two-bedroom apartment in communities across the United States based on fair-market rent and utility data from the U.S. Department of Housing and Urban Development.
How much of my income should I spend on rent:
According to the 30% rent rule, you should spend no more than 30% of your gross income on housing costs, leaving the rest of your paycheck for food, transportation, utilities, savings and other expenses.
Federal housing affordability guidelines use 30% of household income as a measure of whether housing costs are affordable.
“Housing, groceries, gas and other everyday essentials have all steadily increased at a faster pace than the average income,” Realtor.com said in a June 17 report.
The real estate site said the 30% rule should be treated as a starting point — not “a hard-and-fast guideline.”
How expensive is California for renters?
California was the most expensive state for renters in the United States in 2026, according to the National Low Income Housing Coalition’s Out of Reach report.
About 44% of California residents are renters, according to the coalition.
The Golden State had more than 5.9 million renter households in 2024.
To afford a two-bedroom apartment in California, you would need an income of $52.79 per hour.
People earning minimum wage in California — $16.90 per hour — need to work 102 hours every week to afford a modest one-bedroom apartment at fair market rent in California. That translates to 14.5 hours a day for a 40-hour work week.
In California, fair-market rent for a one-bedroom apartment costs $2,237 a month, while a two-bedroom apartment costs $2,745 monthly.
To afford rent and utilities on a two-bedroom apartment without spending more than 30% of your income on housing, you’ll have to make $109,812 in annual income, according to the study.
What are most expensive metro areas in California for renters?
The Central Coast is home to the most metropolitan area in California for renting a two-bedroom apartment, according to the National Low Income Housing Coalition.
You’d need to earn $81.04 an hour to afford rent for a modest two-bedroom apartment in the Santa Cruz-Watsonville metro area, the coalition’s study found.
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About 40% of area residents are renters, accounting for 38,819 households.
Fair-market rent for a two-bedroom apartment in the Santa Cruz-Watsonville metro area costs $4,214.
To afford a two-bedroom apartment there, you would need an annual income of $168,560, according to the study.
That puts local two-bedroom apartments out of reach for minimum wage earners, who would need to work 192 hours a week — equivalent to 27 hours a day — to afford rent.
A minimum wage earner would have to work 150 hours per week, roughly 21 hours a day, to afford a one-bedroom apartment.
According to the coalition, here’s how much you’d need to earn to afford a two-bedroom rental in California’s most expensive metro areas:
- Santa Cruz-Watsonville: $81.04 per hour
- San Francisco: $69.31
- San Jose-Sunnyvalle-Santa Clara: $66.98
- Napa: $63.75
- Santa Ana-Anheim-Irvine: $62.23
How much do I need to earn to afford rent in non-metro California?
Outside of metro areas, California had a total of 105,103 renter households, representing 31% of the whole.
Fair-market rent for a two-bedroom apartment in California’s non-metro areas costs $1,535, while fair-market rent for a one-bedroom apartment is $1,195.
The coalition’s study shows you’d need to earn $29.51 per hour to afford a two-bedroom rental in non-metro areas in California, or $21.47 a hour for a one-bedroom rental.
People earning minimum wage in these areas would need to work 54 hours a week to afford rent for a one-bedroom apartment.
How much do I need to earn in my ZIP code?
The National Low Income Housing Coalition’s database allows renters to search by ZIP code to see how much they would need to earn to afford a modest two-bedroom rental while keeping housing costs at or below 30% of household income.
You can check how much you’ll need to afford a two-bedroom rental in the California area by visiting nlihc.org/oor and entering your ZIP code.
How did low income housing group compare rental costs?
To determine rental costs across the United States, the National Low Income Housing Coalition focused on the housing wage.
This estimates how much a full-time worker must earn hourly to afford a rental home at HUD’s fair market rent without spending more than 30% of their income on housing costs.
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It’s “the most widely accepted standard of affordability,” the coalition said.