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What is low income in San Francisco for a single person?

By: Author Olin Wade (Remodel or Move Stuff)

San Francisco is one of the most expensive cities to live in the United States. With a high cost of living, many people struggle to make ends meet, especially those earning lower incomes. So what is considered a low income for a single person living in San Francisco?

Defining Low Income in San Francisco

There are a few ways low income is defined in San Francisco:

  • Federal Poverty Level – This is a national measure of poverty set by the U.S. Department of Health and Human Services. In 2023, the poverty level for a single person is $13,590.
  • Area Median Income (AMI) – The median household income in the San Francisco metro area is used to calculate low incomes. Households earning less than 80% of AMI are considered low income.
  • Self-Sufficiency Standard – This measures how much income is needed for a household to meet basic needs without public subsidies. In 2021, the self-sufficiency standard for a single adult in San Francisco was $44,735.

Based on these metrics, a single person in San Francisco with an income below $44,735 in 2021 would generally be considered low income. However, keep in mind the cost of living is high throughout the Bay Area, so incomes up to $70,000 may still be struggling.

Cost of Living in San Francisco

San Francisco has one of the highest costs of living in the world. In 2022, the city ranked as the 5th most expensive metropolitan area in the U.S. Some key living costs include:

Expense Average Cost in San Francisco
Rent for 1-Bedroom Apartment $3,500 per month
Groceries $400 per month
Utilities $200 per month
Healthcare $500 per month
Transportation $170 per month

Housing, in particular, consumes a large portion of incomes. San Francisco rents are the highest in the nation, with the average rent for a 1-bedroom apartment at $3,500 per month in 2022.

Determining a Livable Wage

Given the high costs, what is considered a livable wage in San Francisco? One metric is MIT’s Living Wage Calculator, which estimates the minimum income needed to meet a family’s basic needs. In 2022, it estimated a living wage for a single adult in San Francisco County to be $22.44 per hour, or $46,679 annually.

However, even median earners struggle due to the area’s high housing prices. The National Low Income Housing Coalition found the annual income needed for a modest 1-bedroom apartment in San Francisco is $123,480. At San Francisco’s median income of $119,136, that makes renting difficult for many residents.

Who Qualifies as Low Income in San Francisco?

To give a better sense of who is considered low income, here are some of the thresholds used by government agencies and affordable housing programs:

  • U.S. Department of Housing and Urban Development (HUD) – Household income below 80% of the Area Median Income (AMI). For a 1-person household in San Francisco, that’s $82,200 in 2022.
  • San Francisco Housing Authority (SFHA) – Public housing eligibility is capped at 80% AMI. For 2022, that equals $92,450 for a 3-person household.
  • Below Market Rate (BMR) Rental Units – These affordable housing units are open to those earning 55% to 80% of AMI depending on the development. Currently $73,300 to $92,450 for a single person.
  • Supplemental Security Income (SSI) – Federal program for those with disabilities or 65+. In California, recipients get a maximum of $1,153 per month for a single person.

Those with incomes up to $92,450 may qualify for assistance. But keep in mind, an income of $92,450 would make affording market-rate rent near impossible. And San Francisco’s current 2022 median household income is $119,136.

Examining Poverty Levels in San Francisco

To understand low incomes, it also helps to look at poverty rates. Here are some key facts on poverty in San Francisco:

  • 9.5% of San Francisco residents live below the federal poverty level, per the U.S. Census.
  • 18% of children in San Francisco live in poverty, per the U.S. Census.
  • Among San Francisco neighborhoods, Bayview Hunters Point has the highest poverty rate at 16.7%, per DataUSA.
  • About 30% of jobs in San Francisco pay less than a living wage for a single adult, per the MIT Living Wage Calculator.

San Francisco’s overall poverty rate, while lower than the national average, masks the reality many residents struggle. 186,000 people are living below 200% of the federal poverty guidelines in the city, per the SF Department of Public Health.

Income Inequality in San Francisco

San Francisco has extreme income inequality, which contributes to the large low-income population despite the city’s immense wealth. Some key data points on inequality include:

  • San Francisco ranks #4 among U.S. cities for income inequality, per Bloomberg.
  • The top 5% of households earn over 28x more than the bottom 20%, per DataUSA.
  • 45% of households make over $150,000 compared to 9% making under $25,000, per DataUSA.
  • The median income for white households is over $100,000 higher compared to Hispanic/Latinx households, per DataUSA.

This inequality makes it extremely difficult for lower-income households to afford food, housing, healthcare, and other necessities in San Francisco. It has contributed to the homelessness crisis as more households fall into poverty.

Homelessness in San Francisco

San Francisco’s rapidly rising housing prices coupled with inequality has led to a major homelessness crisis:

  • About 7,800 people experience homelessness on any given night in San Francisco, per city data.
  • Roughly 57% of the homeless population lived in San Francisco before becoming homeless.
  • The primary reasons for homelessness are job loss, eviction, and inability to afford rent increases.
  • Median rent in San Francisco requires an hourly wage of $44.79, while minimum wage is only $16.99 per hour.

With median rents over 2.5x higher than what minimum wage workers can afford, it’s not surprising many in San Francisco lack stable housing. Solving this crisis will require major investments in affordable housing.

Housing Affordability in San Francisco

Housing affordability is the number one issue facing low-income residents of San Francisco. Here are some stats on housing affordability:

  • The median home price in San Francisco is $1.3 million as of 2022, per Zillow.
  • To afford a median 2-bedroom apartment in San Francisco, you need an income of $195,000.
  • 62% of households making under $75,000 are rent burdened, spending 30%+ of income on rent.
  • There is a shortage of over 50,000 affordable rental homes for very low and extremely low-income households.

With such high rents and home prices, low-income households cannot afford market-rate housing in San Francisco without being rent burdened. More affordable housing funding and new construction is badly needed.

Transportation Costs

Getting around San Francisco is expensive. Public transportation options help lower costs but can still be a burden:

  • Basic monthly Muni transit pass costs $81.
  • Monthly parking in downtown lots averages $375.
  • Uber and Lyft rides during busy hours can cost $40+ each way across the city.
  • Owning a car has an estimated monthly cost of $500 to $900, including parking, gas, and insurance.

Low-income residents rely heavily on public transit to get to jobs, school, and services around San Francisco and the Bay Area. Keeping transit affordable is crucial.

Healthcare Costs

Affording quality healthcare is extremely difficult for low-income people in San Francisco and nationally. Some healthcare cost figures for San Francisco include:

  • Average monthly health insurance premiums for individuals are $574, per Covered California.
  • Medi-Cal (Medicaid) eligibility requires incomes under about $18,000 for individuals.
  • About 14% of San Francisco residents are uninsured, typically lower-income households.
  • Average cost for medical services, from doctor visits to hospitalizations, are 20-50% higher in San Francisco versus nationwide.

San Francisco’s high healthcare costs, combined with low Medi-Cal eligibility limits, make getting affordable care difficult. Many uninsured people face major struggles covering medical bills.

Childcare Costs

Childcare is often the largest family expense for San Francisco parents. Average childcare costs include:

  • Infant/toddler childcare at $2,700 per month
  • Preschool for 4-year-olds at $2,100 per month
  • After school programs at $1,000+ per month
  • Low-income families spend 25% to 80% of income on childcare

Prohibitive childcare costs often lead low-income parents to choose suboptimal care or leave jobs altogether. Early childhood education is important yet unaffordable for many families.

Food Insecurity

With so many living on the financial edge, food insecurity is a major issue:

  • About 1 in 4 low-income residents report food insecurity.
  • Over 37,000 San Francisco residents rely on food stamps (CalFresh).
  • 1 in 7 San Francisco children experience food insecurity.
  • Black, Hispanic, and immigrant households are disproportionately impacted.

High housing, healthcare, and childcare costs force many households to cut back on food spending. Nationwide, an estimated 40% of food insecure households have at least one working adult.

Hardships Faced by Low-Income Residents

The financial pressures low-income San Franciscans face leads to many hardships:

  • 75% find it somewhat to very difficult to afford basic necessities.
  • 54% report high housing cost is the top contributor to financial distress.
  • 50% had to skip meals, medicine, or doctor visits to pay bills.
  • 64% report high stress over finances.
    • 40% of San Francisco adults could not cover an unexpected $400 expense.

With so many struggling, San Francisco’s high costs of living are clearly unaffordable for lower-income households. The mental health toll of financial stress is also severe.

Government Assistance Programs

Government funded assistance programs provide vital relief for San Francisco’s low-income households. Key programs include:

  • Housing Choice Vouchers – Also called Section 8, vouchers help over 12,000 households pay rent.
  • CalFresh – California’s food stamp program aids 37,000+ city residents.
  • CalWorks – Cash assistance and services for very low-income families.
  • Medi-Cal – Free or low-cost public health insurance covers 1 in 4.
  • School Meals – 74 public schools offer free or subsidized breakfast/lunch.

Local non-profits also provide free tax preparation, legal aid, job training, utility assistance, food pantries, and other support programs. But demand dramatically outpaces resources.

Recent Progress

While San Francisco still has a long way to go, some recent progress has been made:

  • Minimum wage rose to $16.99 in 2022, and reaches $18 in 2023.
  • $600 million affordable housing bond approved in 2015.
  • Free City College program established in 2017.
  • Emergency rental assistance program launched during COVID.
  • Guaranteed income pilot for low-income moms.

Strong advocacy by housing equity, low-income worker, and other community organizations continues to pressure city leaders take action on expanding affordable housing and tenant protections.

Recommendations for the Future

There is significant work still ahead to make San Francisco affordable for all residents. Some recommendations include:

  • Build more affordable housing and preserve exiting affordable units.
  • Increase rental assistance programs.
  • Fund support services like childcare, food access, and healthcare.
  • Improve public transit access and affordability.
  • Set stronger rent control and tenant protections.
  • Raise the minimum wage to match living wages.
  • Expand assistance programs like Medi-Cal.

Addressing affordability issues and inequality will require both short-term relief programs and long-term policy solutions. But our city’s diversity and vitality depends on keeping San Francisco accessible to people of all incomes.

Conclusion

The high cost of living makes life in San Francisco extremely difficult for low-income residents. With median rents over $3,500 a month, necessities like housing, food, and healthcare are out of reach for many. While San Francisco has some of the country’s highest median incomes, it also has severe inequality with 45% of households earning over $150,000 compared to just 9% under $25,000. Solving the housing affordability crisis is critical, as our city’s teachers, retirees, people with disabilities, veterans, minimum wage workers, and others on limited incomes desperately need relief. Stronger investments in affordable housing, government assistance programs, livable wages, and financial protections are required to make San Francisco inclusive for all income levels once again.