How Does a Low-Income Family Make Ends Meet?

In 2004, the federal poverty guidelines for a family of three are set at an income level of $15,670. For a single-earner family, this income leve is equivalent to full-time, full-year work at about $7.80 per hour.

For a family of four, the poverty guidelines are set at $18,850.

How do very-low income families make ends meet? How does a family find adequate and affordable housing, pay for food, transportation expenses, health care, and child care? Is there money left for clothing, school supplies and activity fees, cleaning supplies and other essential items?

The U.S. Department of Housing and Urban Development establishes a "Fair Market Rent" level. This is the 40th percentile rent paid by recent movers, and excludes newly constructed apartments (the 40th percentile rent means that 60 percent of recent movers pay more than this amount). For 2004, the annual fair market rent for a two-bedroom apartment in the DC metro area is $14,616. This amount alone is equal to 93% of the poverty guidelines for a family of three, and 77% for a family of four.

The percentage of income consumed by rent and utilities would be less in other Maryland jurisdictions:

Baltimore metro area: $10,565, or 68% of poverty for a family of three and 56% of poverty for a family of four.

Columbia: $11,496, or 73% of poverty for a family of three and 61% of poverty for a family of four.

Even in Maryland's lowest-rent jurisdictions (Caroline, Dorchester, Garrett and Somerset counties) the annual fair market rent is $6,408 for a two-bedroom apartment. This amount is equivalent to 41% of poverty for a family of three and 34% of poverty for a family of four.

With rent potentially taking up such a large share of income, how does a family meet other expenses? Take the PovertyUSA tour and see.

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Take the PovertyUSA Tour, and see which basic expenses get left out