What is a livable wage? A simple question with a surprisingly complex answer.

A livable wage is the household income needed to meet minimum standards of living in our community. The Living Wage Model, developed by MIT, is only a ‘step up’ from poverty as it only accounts for the basic needs of a family. It is perhaps better defined as a minimum wage needed to survive. The following data is from the MIT Living Wage Calculator for Rapid City with an adjustment to include actual rental rates for Q3 2023.

This is what you would need to earn to meet your basic needs without outside help:

• • If you are a single person household without children, you need to earn $35,065 to make a livable wage, that 241% of poverty ($16.86 per hour)
  • If you are a two-person household without children, you need $55,353 or 281% of poverty ($26.61 per hour)
• • If you are a single parent household, you need:
    • With one child- $71,862 or 364% of poverty ($34.55 per hour)
    • With two children- $91,438 or 368% of poverty ($43.96 per hour)
    • With three children- $118,905 or 394% of poverty ($56.87 per hour)
  • If you are a two-parent household with one working parent, you need:
    • With one child- $69,979 or 281% of poverty ($33.64 per hour)
    • With two children- $79,947 or 266% of poverty ($38.44 per hour)
    • With three children- $86,869 or 247% of poverty ($41.76 per hour)
  • If you are a two-parent household with two working parents, you need:
    • With one child- $80,677 or 325% of poverty ($38.79 per hour)
    • With two children- $101,331 or 338% of poverty ($48.72 per hour)
    • With three children- $118,905 or 338% of poverty ($57.17 per hour)

So how exactly is this “livable wage” calculated by family size? Play with our interactive Rapid City Living Wage tool below.

Don’t want to play with our calculator, here is a snapshot of family budgets for two sample families.

This budget does not include room for dining out, unpaid vacation or holidays, unexpected illness, car repairs, or household appliance repair, savings, retirement, or student loans.