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The middle class has been slowly shrinking, as income inequality grows, wages stagnate and inflation skyrockets. However, there are still states in the U.S. where a middle class income — generally speaking — can go decently far.
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To determine these states, GOBankingRates applied the OECD’s definition of “middle class” as making 75% to 200% of a geographical area’s median income. We then determined middle class income ranges for each state sourced from the Census Bureau’s Current Population Survey.
GOBankingRates also found average monthly mortgage payments from Zillow’s Home Value Index to a 30-year fixed mortgage, and further utilized data from LendEDU, which analyzed aggregated anonymized data from 150,000 Truebill users, to determine average student loan payments; U.S. News & World Report’s breakdown of car ownership by geography to determine monthly car payments; and Experian’s 12th Annual State of Credit Report of total average credit card debt by state to determine monthly credit card payments.
GOBankingRates then found the annual income for each state to be considered middle class by calculating debt payments as a maximum 36% of income, the upper threshold recommended by financial advisors.
Here are the 12 most affordable states for the middle class.
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