Considering that the median annual household income in the U.S. is around $59,000, earning a six-figure salary seems like it should be more than enough. But in many places, it's not. In San Francisco, for example, a family of four making $117,400 is considered "low income."
Credit card comparison site MagnifyMoney analyzed the 100 largest metro areas in the U.S. to see how far a $100,000 household income stretches for families of three. To determine which cities make even six-figure earners "feel broke," MagnifyMoney used local averages to create a "fairly typical" budget for two earners and one kid in each metro area, and then determined how much money that family would have left over, after paying their bills, at the end of each month.
The findings are startling. In five of the 10 worst places for stretching a six-figure salary, MagnifyMoney calculates that even $100,000 isn't enough to make ends meet and have any disposable income.
In these 10 cities, you can earn six figures and still feel like you're struggling.
10. New York, New York
- Monthly disposable income: $505
- Monthly post-tax income: $6,934
- Monthly average housing costs: $2,019
9. Hartford, Connecticut
- Monthly disposable income: $479
- Monthly post-tax income: $7,035
- Monthly average housing costs: $1,880
8. Minneapolis, Minnesota
- Monthly disposable income: $411
- Monthly post-tax income: $6,785
- Monthly average housing costs: $1,835
7. Honolulu, Hawaii
- Monthly disposable income: $140
- Monthly post-tax income: $6,805
- Monthly average housing costs: $1,983
6. Oxnard, California
- Monthly disposable income: $138
- Monthly post-tax income: $7,086
- Monthly average housing costs: $2,188
5. Boston, Massachusetts
- Monthly disposable income: -$31
- Monthly post-tax income: $6,932
- Monthly average housing costs: $2,085
4. Bridgeport, Connecticut
- Monthly disposable income: -$98
- Monthly post-tax income: $7,035
- Monthly average housing costs: $2,421
3. San Francisco, California
- Monthly disposable income: -$160
- Monthly post-tax income: $7,086
- Monthly average housing costs: $2,250
2. Washington, D.C.
- Monthly disposable income: -$360
- Monthly post-tax income: $6,932
- Monthly average housing costs: $2,597
1. San Jose, California
- Monthly disposable income: -$454
- Monthly post-tax income: $7,087
- Monthly average housing costs: $2,520
But, is this estimate an accurate portrayal of spending in Minneapolis?
According to Magnify Money, it received estimates on average spending estimates for Minneapolis on housing ($1835/mo.) and transportation ($1251)/mo.) from the U.S. Department of Housing and Urban Development and average spending on childcare ($922) through the website care.com.
"Due to the nature of this study, where we're comparing metros across different states, and even some that cross states, we have to use data for each metric that is available for every area we're covering in our analysis," said executive editor of Magnify Money, Mandi Woodruff, in an email.
We checked our own estimates of monthly spending for the average family of three in Minneapolis from the Minnesota Department of Employment and Economic Development, which changed the headline on this story.
By using statistics from MN-DEED, the family making $100K would have more than $1,400 for discretionary spending after bills each month, which would put Minneapolis 60th in the nation in Magnify Money’s list.