As of late 2023, the Federal Minimum wage in the country is $7.25, and even lower, $2.13, for workers who receive tips. Each state differs in what its minimum wage is and while some are higher than others (Washington, California, and New York), these wages are not always enough to help people escape poverty. The wage premium on city jobs is a well-known if not completely understood fact in the U.S. economy. Leaving a small town for a big city is likely to lead to more job options at higher wages, and bigger cities tend to have more productive economies and higher-income residents.
The national median household income is $74,755. The median annual household income in nearly all (17) of the 20 largest U.S. metro areas far exceeds this. The opposite is true in the 20 lowest-population metro areas– the median household income surpasses the national figure in just two cities (Midland, Michigan, and Fairbanks, Alaska). These are the cities that attracted the most new residents last year.
The U.S. Census Bureau is the leading source of information on the economy, locations, and people in the United States. This bureau released its 2022 data for large geographic areas, including states, metropolitan areas, and mid-to-large-sized cities on Sept. 14 this year. Amid a historic rise in the inflation rate, real median household income fell by 2.3% from $76,330 in 2021 to $74,580 in 2022. Between 2021 and 2022, inflation rose by 7.8% — the largest annual increase in the cost-of-living adjustment since 1981, according to the release.
To find out which cities, even with the advantage a larger population size seems to offer, still trail most other cities in terms of the income of a typical household, 24/7 Wall St. reviewed the median annual household income in the 192 metropolitan areas with a population of 250,000 or less (about half of the 382 U.S. metropolitan statistical areas considered by the 2022 American Community Survey). (Also see, people are leaving these 50 American cities in droves.)
Here are the poorest large cities in America
26. Greensboro-High Point, NC
Source: Kruck20 / iStock via Getty Images
- Median household annual income: $60,271
- Households with incomes under $10,000: 21,179 (6.6%% of households – #98 highest out of 382 MSAs)
- People in households with incomes under poverty line: 126,855 (16.8%% – #76 highest out of 382 MSAs)
- Population: 784,101 – #79 largest MSA
25. Hickory-Lenoir-Morganton, NC
Source: J. Michael Jones / iStock Editorial via Getty Images
- Median household annual income: $60,209
- Households with incomes under $10,000: 6,365 (4.2%% of households – #317 highest out of 382 MSAs)
- People in households with incomes under poverty line: 49,766 (13.8%% – #166 highest out of 382 MSAs)
- Population: 368,347 – #148 largest MSA
24. Beaumont-Port Arthur, TX
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- Median household annual income: $60,067
- Households with incomes under $10,000: 12,527 (8.2%% of households – #39 highest out of 382 MSAs)
- People in households with incomes under poverty line: 63,683 (16.9%% – #74 highest out of 382 MSAs)
- Population: 393,575 – #141 largest MSA
23. Laredo, TX
Source: DenisTangneyJr / iStock Unreleased via Getty Images
- Median household annual income: $59,603
- Households with incomes under $10,000: 4,584 (5.6%% of households – #176 highest out of 382 MSAs)
- People in households with incomes under poverty line: 52,898 (20.1%% – #19 highest out of 382 MSAs)
- Population: 267,780 – #185 largest MSA
22. Gainesville, FL
Source: Sean Pavone / iStock via Getty Images
- Median household annual income: $59,516
- Households with incomes under $10,000: 13,099 (9.2%% of households – #17 highest out of 382 MSAs)
- People in households with incomes under poverty line: 60,180 (18.0%% – #51 highest out of 382 MSAs)
- Population: 350,903 – #152 largest MSA
21. Lubbock, TX
Source: Patricia Elaine Thomas / iStock via Getty Images
- Median household annual income: $59,228
- Households with incomes under $10,000: 10,015 (7.6%% of households – #60 highest out of 382 MSAs)
- People in households with incomes under poverty line: 55,357 (17.5%% – #59 highest out of 382 MSAs)
- Population: 328,173 – #159 largest MSA
20. Tuscaloosa, AL
Source: Wolterk / iStock Editorial via Getty Images
- Median household annual income: $58,620
- Households with incomes under $10,000: 9,098 (8.5%% of households – #31 highest out of 382 MSAs)
- People in households with incomes under poverty line: 44,781 (17.3%% – #65 highest out of 382 MSAs)
- Population: 277,274 – #180 largest MSA
19. Jackson, MS
- Median household annual income: $58,064
- Households with incomes under $10,000: 15,618 (7.0%% of households – #87 highest out of 382 MSAs)
- People in households with incomes under poverty line: 94,502 (16.9%% – #73 highest out of 382 MSAs)
- Population: 580,661 – #99 largest MSA
18. Tallahassee, FL
Source: Art Wager / iStock via Getty Images
- Median household annual income: $58,018
- Households with incomes under $10,000: 13,740 (8.8%% of households – #28 highest out of 382 MSAs)
- People in households with incomes under poverty line: 72,023 (19.6%% – #23 highest out of 382 MSAs)
- Population: 391,680 – #142 largest MSA
17. Gulfport-Biloxi, MS
Source: Sean Pavone / iStock via Getty Images
- Median household annual income: $58,007
- Households with incomes under $10,000: 13,401 (7.9%% of households – #44 highest out of 382 MSAs)
- People in households with incomes under poverty line: 72,385 (17.5%% – #61 highest out of 382 MSAs)
- Population: 420,782 – #133 largest MSA
16. Springfield, MO
Source: ChrisBoswell / iStock via Getty Images
- Median household annual income: $57,822
- Households with incomes under $10,000: 9,491 (4.7%% of households – #266 highest out of 382 MSAs)
- People in households with incomes under poverty line: 67,376 (14.3%% – #149 highest out of 382 MSAs)
- Population: 484,613 – #116 largest MSA
15. Spartanburg, SC
- Median household annual income: $57,755
- Households with incomes under $10,000: 7,365 (5.5%% of households – #180 highest out of 382 MSAs)
- People in households with incomes under poverty line: 49,977 (14.8%% – #128 highest out of 382 MSAs)
- Population: 345,831 – #154 largest MSA
14. Flint, MI
Source: DenisTangneyJr / iStock via Getty Images
- Median household annual income: $57,003
- Households with incomes under $10,000: 11,811 (7.0%% of households – #84 highest out of 382 MSAs)
- People in households with incomes under poverty line: 64,988 (16.4%% – #84 highest out of 382 MSAs)
- Population: 401,983 – #135 largest MSA
13. Huntington-Ashland, WV-KY-OH
Source: traveler1116 / iStock via Getty Images
- Median household annual income: $56,806
- Households with incomes under $10,000: 9,691 (6.6%% of households – #104 highest out of 382 MSAs)
- People in households with incomes under poverty line: 56,388 (16.3%% – #87 highest out of 382 MSAs)
- Population: 354,304 – #151 largest MSA
12. Erie, PA
Source: DenisTangneyJr / E+ via Getty Images
- Median household annual income: $56,094
- Households with incomes under $10,000: 8,266 (7.4%% of households – #68 highest out of 382 MSAs)
- People in households with incomes under poverty line: 38,548 (15.1%% – #119 highest out of 382 MSAs)
- Population: 267,689 – #186 largest MSA
11. Youngstown-Warren-Boardman, OH-PA
Source: StanRohrer / iStock via Getty Images
- Median household annual income: $54,506
- Households with incomes under $10,000: 17,638 (7.7%% of households – #54 highest out of 382 MSAs)
- People in households with incomes under poverty line: 87,327 (16.8%% – #75 highest out of 382 MSAs)
- Population: 535,499 – #108 largest MSA
10. Mobile, AL
- Median household annual income: $54,313
- Households with incomes under $10,000: 13,824 (8.2%% of households – #40 highest out of 382 MSAs)
- People in households with incomes under poverty line: 78,725 (18.7%% – #39 highest out of 382 MSAs)
- Population: 428,780 – #128 largest MSA
9. Ocala, FL
Source: Michael Warren / iStock via Getty Images
- Median household annual income: $54,190
- Households with incomes under $10,000: 11,115 (6.8%% of households – #93 highest out of 382 MSAs)
- People in households with incomes under poverty line: 62,026 (16.1%% – #90 highest out of 382 MSAs)
- Population: 396,415 – #140 largest MSA
8. Columbus, GA-AL
Source: RobHainer / iStock via Getty Images
- Median household annual income: $54,106
- Households with incomes under $10,000: 11,192 (8.9%% of households – #26 highest out of 382 MSAs)
- People in households with incomes under poverty line: 57,340 (18.5%% – #43 highest out of 382 MSAs)
- Population: 324,416 – #161 largest MSA
7. El Paso, TX
Source: Bill Chizek / iStock Editorial via Getty Images
- Median household annual income: $53,359
- Households with incomes under $10,000: 23,065 (7.7%% of households – #57 highest out of 382 MSAs)
- People in households with incomes under poverty line: 182,677 (21.3%% – #11 highest out of 382 MSAs)
- Population: 871,323 – #68 largest MSA
6. Charleston, WV
Source: ScottNodine / iStock via Getty Images
- Median household annual income: $53,157
- Households with incomes under $10,000: 8,095 (7.6%% of households – #62 highest out of 382 MSAs)
- People in households with incomes under poverty line: 48,536 (19.7%% – #22 highest out of 382 MSAs)
- Population: 250,554 – #192 largest MSA
5. Kingsport-Bristol, TN-VA
Source: J. Michael Jones / iStock Editorial via Getty Images
- Median household annual income: $52,887
- Households with incomes under $10,000: 7,265 (5.5%% of households – #188 highest out of 382 MSAs)
- People in households with incomes under poverty line: 44,438 (14.5%% – #135 highest out of 382 MSAs)
- Population: 310,483 – #166 largest MSA
4. Shreveport-Bossier City, LA
Source: SeanPavonePhoto / iStock Editorial via Getty Images
- Median household annual income: $52,775
- Households with incomes under $10,000: 13,707 (8.7%% of households – #30 highest out of 382 MSAs)
- People in households with incomes under poverty line: 71,904 (19.1%% – #29 highest out of 382 MSAs)
- Population: 385,154 – #144 largest MSA
3. Lafayette, LA
Source: DenisTangneyJr / iStock via Getty Images
- Median household annual income: $50,837
- Households with incomes under $10,000: 16,255 (8.4%% of households – #33 highest out of 382 MSAs)
- People in households with incomes under poverty line: 96,101 (20.2%% – #16 highest out of 382 MSAs)
- Population: 481,125 – #118 largest MSA
2. Brownsville-Harlingen, TX
Source: DenisTangneyJr / iStock via Getty Images
- Median household annual income: $50,649
- Households with incomes under $10,000: 11,365 (8.2%% of households – #37 highest out of 382 MSAs)
- People in households with incomes under poverty line: 93,839 (22.3%% – #9 highest out of 382 MSAs)
- Population: 425,208 – #131 largest MSA
1. McAllen-Edinburg-Mission, TX
Source: BOB WESTON / iStock via Getty Images
- Median household annual income: $49,142
- Households with incomes under $10,000: 20,735 (7.7%% of households – #56 highest out of 382 MSAs)
- People in households with incomes under poverty line: 243,504 (27.6%% – #1 highest out of 382 MSAs)
- Population: 888,367 – #66 largest MSA
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