An estimated 41 million Americans are living below the poverty line, and the economic pressures they face impact nearly all aspects of day-to-day life. The hardships associated with poverty – which, in the continental U.S., is defined as an income of under $30,000 a year for a family of four – can harm everything, from relationships with friends and family to mental and physical health outcomes.
Fortunately, millions of Americans escape poverty each year. But for those suffering from serious financial hardship, and also residing within a high-poverty community, opportunities for upward mobility are strikingly limited.
Neighborhoods or tracts with poverty rates of 40% or higher typically report widespread unemployment, high crime rates, substandard schools, and limited access to quality health care and other essential services. For the poorest residents of these areas, the personal hardships associated with poverty are compounded by the broader, communal effects of geographically concentrated poverty.
Using data from the U.S. Census Bureau, 24/7 Wall St. identified the metro area in each state hit hardest by extreme poverty. Metro areas within each state were ranked based on the share of residents with poverty-level incomes who also live in concentrated poverty neighborhoods — census tracts with poverty rates of 40% or higher. Due to data limitations, extreme poverty rates were not calculable for metro areas within Connecticut.
In all but six states, there is at least one metro area with a neighborhood where the poverty rate exceeds 40%. It is important to note that Rhode Island is home to only one metro area, which ranks as having the highest extreme poverty rate in the state by default only.
Not only do the metro areas on this list have a relatively high degree of economic segregation, but they also tend to have larger poor populations overall. In 36 of the 43 metro areas on this list, the overall poverty rate exceeds the poverty rate statewide. (Here is a look at the American cities with the highest poverty rates.)
In some of these metro areas, more than one in every four people living on poverty-level incomes reside in a concentrated poverty neighborhood. In over a dozen metro areas on this list, the typical household within a high-poverty neighborhood earns over $50,000 less per year than a typical household across the rest of the city. (Here is a look at the city with the poorest middle class in every state.)
Here is the city hit hardest by extreme poverty in every state.
Concentrated poverty rate: 5.0% of poor pop. living in poor neighborhoods
Overall poverty rate: 11.2% (state: 11.3%)
Neighborhoods in extreme poverty: 7 of 371 tracts
Avg. household income: $38,098 in poor tracts, $98,217 in all others
South Carolina: Sumter, SC
Concentrated poverty rate: 23.6% of poor pop. living in poor neighborhoods
Overall poverty rate: 18.5% (state: 14.5%)
Neighborhoods in extreme poverty: 3 of 26 tracts
Avg. household income: $38,894 in poor tracts, $66,562 in all others
South Dakota: No eligible metro area with concentrated poverty
State poverty rate: 12.5%
Tennessee: Memphis, TN-MS-AR
Concentrated poverty rate: 24.7% of poor pop. living in poor neighborhoods
Overall poverty rate: 16.9% (state: 14.3%)
Neighborhoods in extreme poverty: 47 of 352 tracts
Avg. household income: $35,391 in poor tracts, $87,008 in all others
Texas: McAllen-Edinburg-Mission, TX
Concentrated poverty rate: 32.5% of poor pop. living in poor neighborhoods
Overall poverty rate: 28.1% (state: 14.0%)
Neighborhoods in extreme poverty: 40 of 211 tracts
Avg. household income: $42,172 in poor tracts, $66,455 in all others
Utah: Logan, UT-ID
Concentrated poverty rate: 8.8% of poor pop. living in poor neighborhoods
Overall poverty rate: 13.6% (state: 8.8%)
Neighborhoods in extreme poverty: 1 of 27 tracts
Avg. household income: $54,695 in poor tracts, $84,417 in all others
Vermont: No eligible metro area with concentrated poverty
State poverty rate: 10.5%
Virginia: Virginia Beach-Chesapeake-Norfolk, VA-NC
Concentrated poverty rate: 8.9% of poor pop. living in poor neighborhoods
Overall poverty rate: 10.9% (state: 9.9%)
Neighborhoods in extreme poverty: 14 of 468 tracts
Avg. household income: $39,051 in poor tracts, $95,046 in all others
Washington: Bellingham, WA
Concentrated poverty rate: 11.2% of poor pop. living in poor neighborhoods
Overall poverty rate: 13.4% (state: 10.0%)
Neighborhoods in extreme poverty: 2 of 53 tracts
Avg. household income: $52,900 in poor tracts, $91,998 in all others
West Virginia: Charleston, WV
Concentrated poverty rate: 11.8% of poor pop. living in poor neighborhoods
Overall poverty rate: 17.4% (state: 16.9%)
Neighborhoods in extreme poverty: 4 of 68 tracts
Avg. household income: $39,280 in poor tracts, $72,188 in all others
Wisconsin: Milwaukee-Waukesha, WI
Concentrated poverty rate: 19.8% of poor pop. living in poor neighborhoods
Overall poverty rate: 12.6% (state: 10.7%)
Neighborhoods in extreme poverty: 37 of 444 tracts
Avg. household income: $37,781 in poor tracts, $95,278 in all others
Wyoming: No eligible metro area with concentrated poverty
State poverty rate: 10.7%
Methodology
To identify the city hit hardest by extreme poverty in each state, 24/7 Wall St. reviewed five-year data on concentrated poverty from the U.S. Census Bureau’s 2021 American Community Survey. Metropolitan areas were ranked based on the share of poor residents who live in extreme poverty neighborhoods — census tracts with a poverty rate of 40% or higher. This measure is called the extreme or concentrated poverty rate, and is calculated by aggregating data from the census tract level to the metropolitan area level.
In our analysis, we only considered census tracts with at least 500 people and college or graduate school enrollment below 50%. Metro areas were also excluded if over 20% of the population in tracts or neighborhoods of concentrated poverty were college or university students, as large undergraduate populations can skew data on financial hardship. Data was aggregated using boundary definitions for July 2023 from the Census Bureau.
All other data referenced — homeownership, average household income, and unemployment — are also from the 2021 ACS. Figures were aggregated from the census tract to the metropolitan level. Note that MSA boundary definitions for Connecticut metro areas are composed of planning regions, not counties, as of June 2022, and were not aggregated from the census tract level. In six states, no metro areas contain eligible census tracts where at least 40% of the population lives in poverty.
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