Maui is one of the most beautiful and desirable places to live in the United States. However, the cost of living in Maui is very high compared to most parts of the country. This means that even a relatively high income by mainland standards may be considered low income in Maui. So what is considered low income in Maui?
Defining Low Income
There are a few ways low income is defined in Maui and Hawaii:
Federal Poverty Level
The Federal Poverty Level (FPL) is a measure used across the United States to define low income. In 2023, the FPL for a single person household in Hawaii is $14,430. For a family of 4, the FPL is $29,750. Households earning below these thresholds are considered to be in poverty.
Median Income
Another way of looking at low income is based on the median household income. In Maui County, the median household income is $81,161 according to 2021 Census data. Households earning significantly less than the median could be considered low income. For example, households earning 50% or less of the median ($40,580 or less) may struggle with affording basic needs in Maui.
Self-Sufficiency Standard
The Self-Sufficiency Standard calculates how much income households need to meet basic needs without public subsidies. In 2022, the Self-Sufficiency Standard for Maui County was:
| 1 Adult | $38,060 |
| 1 Adult, 1 preschooler | $64,722 |
| 1 Adult, 1 preschooler, 1 school child | $77,076 |
| 2 Adults, 1 infant, 1 preschooler | $78,840 |
Households earning below these thresholds may have difficulty affording basics like housing, food, childcare, healthcare, transportation and other necessities in Maui without assistance.
Cost of Living in Maui
To understand low income thresholds in Maui, it helps to look at the high cost of living compared to other parts of the country. Maui has the 5th highest cost of living of any urban area in the U.S. Here are some examples of common expenses:
Housing
Housing costs are typically the largest expense for households. The median rent for a 1 bedroom apartment in Maui is around $1,700 per month according to 2022 estimates. Buying a median priced home at $977,500 would cost over $4,000 per month with a mortgage. High housing costs relative to incomes make housing unaffordable for many residents.
Food
Grocery prices are about 25% higher in Maui than the U.S. average. A modest grocery budget of $400 per month for a single adult would equate to $500 in Maui. The higher cost of food makes it harder for low income residents to afford healthy diets.
Healthcare
Healthcare costs in Hawaii are above average. Average health insurance premiums are around $500 per month for an individual. For those without insurance, a basic doctor visit may cost $150-$200 out of pocket. Medications, hospital stays, procedures and other medical expenses are also more expensive compared to many parts of the mainland.
Childcare
For families with young children, childcare is often one of the largest monthly expenses. The average cost of childcare for an infant in Hawaii is over $1,000 per month. For low income families, the high cost of childcare may make it unaffordable to have both parents work full-time.
Transportation
Owning and operating a vehicle in Hawaii is more expensive due to import costs. For example, a used car may cost 20% more compared to prices on the mainland. Auto insurance premiums are also higher, averaging around $1,500 annually. For low income families, the costs of owning a reliable vehicle can be prohibitive. Public transportation is limited in most parts of Maui.
Employment in Maui
Low wages for many jobs in Maui also contribute to higher rates of low income households. The largest industries in Maui are accommodation, food service, retail, healthcare, and construction – fields that tend to pay below average salaries.
The average annual wage for all occupations in Maui County is around $50,000. However, wages are significantly lower for common jobs like:
| Retail salesperson | $30,000 |
| Waiter/waitress | $30,000 |
| Cashier | $28,000 |
| Food prep worker | $28,000 |
| Janitor | $30,000 |
| Security guard | $33,000 |
| Preschool teacher | $34,000 |
These lower wage jobs make up a significant portion of employment in Maui. Even households with 2 full-time working adults may struggle to meet basic needs if wages are in the $15-$20/hour range.
The current minimum wage in Maui County is $12 per hour. A full-time minimum wage earner makes around $25,000 per year. While Maui’s minimum wage is relatively high for Hawaii, it is still difficult for minimum wage workers to afford the high cost of living.
Government Assistance Programs
A number of government assistance programs aim to help low income residents in Hawaii meet basic needs:
Medicaid
Medicaid provides free or low-cost health insurance to those earning up to 138% of the Federal Poverty Level. In Hawaii, Medicaid is called Quest. Individuals earning under $18,754 per year may qualify. Medicaid covers doctor visits, prescriptions, emergency care, pregnancy and childbirth, and other medical expenses.
SNAP/Food Stamps
The Supplemental Nutrition Assistance Program (SNAP) offers monthly benefits to purchase groceries for those earning under 130% of the poverty line. In Hawaii, SNAP is administered by the Department of Human Services. The maximum SNAP benefit for a 1 person household is $281 per month.
Section 8 Housing
Section 8 rental assistance vouchers help cover all or part of monthly rents for low income tenants. Eligibility is based on earning under 50% of area median income. In Maui, the housing choice voucher waitlist is currently closed with over 1,800 applicants.
TANF Cash Assistance
Temporary Assistance for Needy Families (TANF) provides cash benefits to families with children earning under 50% of the poverty line. The maximum monthly TANF payment for a family of 3 in Hawaii is $610. Benefits are limited to a maximum of 5 years over a lifetime.
Women, Infants and Children (WIC)
WIC provides nutritional support including food vouchers, nutrition education, and health services for pregnant women, new mothers, infants and children under 5 earning up to 185% of the poverty limit. WIC aims to ensure healthy growth and development in early childhood.
Free and Reduced School Lunch
Children in households earning under 130% of poverty are eligible for free school lunches. Those earning 130% to 185% of poverty qualify for reduced price lunches. This ensures access to healthy meals during the school day for low income students.
Non-Profit Assistance
In addition to government programs, many non-profit organizations in Maui provide assistance to low income individuals and families struggling to make ends meet:
Food Banks
The Maui Food Bank and other island food banks help provide free groceries and meals for those in need. Food banks accept donations of food and money to stock their pantries. Individuals and families can visit food banks during open hours or schedule food drop offs.
Rental & Utility Assistance
Groups like Catholic Charities Hawaii and Family Life Center provide rental assistance grants to help cover security deposits, rent, and utilities. This assistance may help low income families avoid eviction and homelessness.
Medical Clinics
Non-profits like Mālama I Ke Ola Health Center operate clinics providing low cost and free medical, dental and mental healthcare. This improves access for uninsured and underinsured low income residents.
Childcare Subsidies
The Maui Economic Opportunity (MEO) Childcare Connection program offers childcare subsidies to help offset the cost of childcare for eligible low income families. This makes childcare more affordable and allows parents to work.
Career Training
Groups like the Maui Economic Development Board (MEDB), Alu Like, and UH Maui College run job training programs focused on high demand fields like healthcare, technology, and agriculture. These programs help develop skills needed to improve employment opportunities and wages.
Socioeconomic Factors Impacting Poverty
In addition to employment and cost of living, several socioeconomic factors influence poverty rates in Maui:
Cost of Housing
Housing costs that are high relative to local wages are a major driver of poverty. Nearly half of renters in Maui are considered cost burdened, paying over 30% of income on housing. High housing costs leave less money for other basic expenses.
Cost of Childcare
Limited affordable childcare options prevent parents from being able to work full-time. Single parents and households with multiple young children are at highest risk of financial instability. Cost of living expenses increase substantially with each additional child while incomes may remain stagnant.
Education
Those without education beyond high school are more likely to work minimum wage or low paying service jobs. This contributes to higher poverty among those lacking vocational training or college. Just 21% of Hawaii adults have a bachelor’s degree or higher.
Disabilities
Adults and children with disabilities face barriers to education and employment. Extra medical and healthcare costs also strain budgets. Nearly 30% of Hawaii residents with a disability live in poverty compared to 10% without a disability.
Drug Abuse
Those struggling with drug or alcohol dependence face severe economic disadvantages. Physical and mental health conditions associated with substance abuse make sustaining stable employment difficult. Rehabilitation and treatment programs are underfunded relative to need.
Demographics of Low Income Households
Certain demographic groups face higher rates of poverty and financial instability in Maui:
Native Hawaiians
Around 20% of Native Hawaiians live below the poverty line – more than double the statewide average. Lower educational attainment, higher unemployment, housing insecurity, and health disparities all contribute to higher poverty risk. Efforts to improve socioeconomic equity for Native Hawaiians are ongoing.
Children
An estimated 16% of all children under 18 in Maui County live below the poverty threshold. Key risk factors for child poverty include single parent households, parents with low education levels, and parents who are unemployed or underemployed in low wage jobs. Impoverished children are at risk for adverse long-term consequences impacting health, development, and future earnings.
Seniors
11% of those over 65 in Maui fall below the poverty line. Many seniors live on fixed incomes solely from social security and retirement savings. Living costs that rise faster than inflation or medical expenses can quickly drain limited incomes. Food insecurity is a problem among elderly populations in Hawaii.
Immigrants and Non-English Speakers
Language barriers and legal status limitations result in higher poverty rates among immigrants and non-English speakers. Many work labor intensive jobs for low pay and lack access to government support programs. Developing pathways for legal status and English language learning can help improve economic stability.
People with Disabilities
Roughly 15% of Maui residents have a disability. Adults with cognitive disabilities face high rates of unemployment and dependence on Supplemental Security Income payments averaging around $750 per month. Children with disabilities require extensive care that can severely strain family finances.
Strategies to Alleviate Poverty in Maui
There are a number of evidence-based strategies Maui can pursue to help alleviate high rates of poverty and financial insecurity:
Affordable Housing Development
Expanding affordable rental housing units and subsidized ownership opportunities will lower the housing cost burden for low income residents. Non-profit and public-private partnerships can be leveraged to fill affordable housing gaps where market-rate development is unaffordable.
Early Childhood Programs
Research shows high quality preschool and childcare programs help improve long-term education and health outcomes. This breaks cycles of intergenerational poverty. Hawaii could expand public pre-Kindergarten programs and increase childcare subsidies for low income families.
Education and Job Training
Hawaii’s public higher education institutions should improve access and affordability for low income students to increase social mobility. For those without college plans, vocational training centers prepare students for careers in high demand fields. Apprenticeship programs also facilitate direct pathways from training into employment.
Increase Minimum Wage
Regularly adjusting the minimum wage to match cost of living increases will ensure full-time minimum wage employment provides a living wage. Indexing the minimum wage to inflation protects its purchasing power so low income workers are not left behind.
Tax Credits and Service Aid
The state could strengthen the Earned Income Tax Credit to better aid low wage workers. Service initiatives like Hawaii’s Child Care Connection subsidy could be expanded to assist more families with childcare costs. Similarly, food assistance programs warrant greater funding to meet nutritional needs.
Conclusion
Despite its paradise reputation, Maui has growing income inequality and concerning rates of poverty driven largely by the high and rising cost of living. Over 10% of residents fall below the Federal Poverty Level. Many more households struggle to meet basic expenses on median incomes due to high housing, food, and childcare costs. Alleviating hardship and expanding the middle class will require policy action across multiple fronts – creating affordable housing, increasing wages, lowering living costs, and delivering support services to those most in need. A collective effort focused on socioeconomic equity can help ensure more Maui residents are able to achieve financial stability and share in Hawaii’s prosperity.