Article Claims Michigan City is Best Place to Live on Minimum Wage

Sometimes the stats say one thing and the reality is wildly different.

For example, the cost of living in Detroit is rather low, even if it is 3% higher than the national average. That's low for a huge city. Housing costs are 8% higher, even though houses typically cost less and rent prices are lower.

You can head to Zillow or any of the many apartment search websites and find places to live for low face-value prices.

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But context is king, isn't it? Someone with an average salary in the state, roughly $50k, wouldn't have too much trouble in a city like Detroit. But someone living on minimum wage in Detroit would.

Cheapism published an article recently naming the 10 best and worst cities to live in on minimum wage and the Motor City was named the best. Here's what Cheapism said:

If you’re living on a minimum wage salary in the Motor City, you only have to pay 61% of your salary to have your very own one-bedroom apartment.

The minimum wage in Michigan is currently $10.33 per hour and will rise to $10.56 on January 1 and then again to $12.48 on February 21. Sticking with the current minimum wage, that's $21,486 per year at full-time status. The average rent in Detroit is roughly $1,084 per month. The 61% figure Cheapism referenced checks out.

However, the city has a 33.8% poverty rate, a 20.59 violent crime rate and a 45.5 property crime rate. Where there is poverty, there is crime, which creates unfavorable living conditions.

The thing is, if you're making minimum wage, you probably aren't employed full-time - only 1% of minimum wage workers are. So, either you work more than one job, or your rent goes from 61% of your income to 75-80%.

It's recommended you spend 30% of your income on rent. Considering the poverty rate in the city, it's safe to say too many Detroiters are paying more than 30 or even 61% of their income in rent.

Look, Detroit is a city on the rebound, and the world is starting to notice. Workers with job security and reasonable pay closer to the state average should move to Detroit if they choose to. It'll help the city find its balance.

But just because the pricetags on poorly operated apartment complexes and houses the city is just waiting to demolish are low doesn't mean the city is an ideal place to live if you're in poverty. It's dangerous to live in Detroit in poverty, in more ways than one.