Families need different incomes to live comfortably depending on where they live, with housing costs playing a major role in their budgets.
Financial counselor Rudri Patel recommends keeping housing costs manageable and balancing everyday expenses with discretionary spending and savings.
Reviewing expenses, cutting unused subscriptions, negotiating bills and seeking nonprofit credit counseling can help families find breathing room in their budgets.
For many families, figuring out how much money they need to live comfortably has become a real challenge.
Between housing, groceries, healthcare, transportation and other everyday expenses, a paycheck that seems like it should be enough can quickly get stretched thin. And where you live can make a big difference in how far your money goes.
A new MoneyLion study looks at how much income families need to rent or own a home in all 50 states, highlighting just how much those costs can vary. ConsumerAffairs spoke with Rudri Patel, a NACCC Certified Financial Health Counselor, about what these numbers mean for families and how they can better understand their own financial needs.
Methodology and key findings
MoneyLion's study analyzed the income families need to live comfortably as renters and homeowners in all 50 states. Rental costs were based on 2026 data from Apartments.com, while homeownership costs used July 2026 Zillow home values and assumed a 30-year fixed mortgage with a 20% down payment and a 6.65% interest rate.
Researchers also factored in grocery, utility, healthcare, and transportation costs using 2024 Bureau of Labor Statistics household spending data, adjusted for regional cost-of-living differences.
They then applied the 50/30/20 budgeting rule, which allocates 50% of after-tax income to necessities, 30% to discretionary spending and 20% to savings and debt repayment.
The findings show that renting comfortably requires at least $100,000 in annual income in every state, with renter households needing an average of about $143,000 before taxes.
New York had the highest estimated monthly after-tax income requirement for renters at $12,157, while Oklahoma had the lowest at $7,003. For homeowners, Hawaii topped the list at $18,071 in monthly after-tax income, while Mississippi had the lowest estimate at $7,091.
The study also found that owning was less expensive than renting in five states, including New York, Illinois, Mississippi, Pennsylvania, and West Virginia.
Breaking down your budget
This study looks at a common budgeting breakdown: the 50/30/30 rule. But what happens when consumers’ housing costs hit 60% or more of their income?
“As a certified financial health expert, I recommend allotting 40% of your budget to housing, dedicating 25% to 30% to other daily expenses (groceries, transportation, healthcare utilities), and 10% to 15% to discretionary spending and savings,” Patel explained.
“If possible, you’ll likely want to try to lower your housing costs. If you rent, consider another location when your lease expires. If you own a home, find out if you qualify for refinancing your mortgage at a lower rate. Other possibilities include taking in a roommate if it feels like a good fit for you. If you can identify a side gig to generate extra income, that can also create a more sustainable budget framework.”
Finding breathing room in the budget
Whether you’re renting or owning, it may not be uncommon to experience a shortfall in the monthly budget. However, you don’t want to always find yourself in the red each month.
Patel shared her best advice to find some breathing room in your budget:
Review the numbers. Look at the last three months of expenses and note how much you're spending in each category. Find out if there are spending dollars you can cut that may help bridge the gap to lessen that $1,000 shortfall.
Cancel what you don’t use. If you’re not using that gym membership, cancel. Are there any other recurring costs in subscriptions or memberships that you aren’t using? Those are also places you can cut spending.
Negotiate fixed, recurring costs for a lower rate. Look at cell phone bills, insurance, and credit card interest rates — if you’re a longtime customer and have consistently made timely payments, ask if you can get a new payment plan or lower interest rate.
Cut the costs that vary. Can you cut back on transportation, dining out and discretionary spending? Cutting in these categories often results in saving at least $200 - $400.
Total how much money you can save by eliminating some costs and lowering others. If there is still a wide gap, it may be related to housing or too much debt. Consider meeting with a nonprofit credit counselor to get some advice and create a plan you can stick with.
Don’t lose hope
For anyone struggling financially, Patel hopes that consumers know hope isn’t lost, and there’s always positive steps to take to make things better.
“Families shouldn’t lose hope of trying to reach their financial goals,” she said. “The data shows that it’s gotten harder to meet financial milestones, but with careful planning and budgeting it’s possible to meet your goals.
“The math has changed, so understand that the shortcomings aren’t because you’ve failed in your financial life.”