Who developed Texas Reality Check?
Texas Reality Check is brought to you by the Labor Market & Career Information Department of the Texas Workforce Commission.
How are apartment rental and house prices determined?
Monthly apartment rental rates are fair market rents as determined by the U.S. Department of Housing and Urban Development (HUD). House prices are determined by a review of the current median sales price for the area. The monthly house payment assumes that the buyer obtains a 30 year mortgage with current interest rates and a 20% down payment.
How is the Regional Minimum Salary determined in Texas Reality Check?
The Regional Minimum Salary in Texas Reality Check is primarily influenced by housing costs, which are the largest component of the overall calculation. These costs include both apartment rental prices and home prices specific to each region in Texas.
• Apartment rental prices are based on the U.S. Department of Housing and Urban Development (HUD) 40th percentile fair market rents for each region.
Source: HUD Fair Market Rents.
• Home prices are obtained from the Texas A&M Real Estate Research Center’s Housing Activity data.
Source: Texas Real Estate Research Center - Housing Activity.
These regional housing figures are key factors in estimating how much income may be needed to afford the selected lifestyle in different areas of Texas. It is important to note that this estimate is based on user choices and is not intended to represent an official wage standard or the minimum required for basic living needs.
How are health care costs determined?
Basic and premium insurance rates assume the user is a healthy adult in their 20's. Costs are based on current rates as determined by the Affordable Care Act.
How is the student loan debt calculated?
Student loan debt is based on average yearly loan amounts as published by The Institute for College Access & Success. Loans are calculated using the current average student loan interest rates and are amoritized over 30 years for professional degrees and 20 years for all others.
How are family costs determined?
The cost of raising children is determined by using the "Cost of Raising a Child Calculator" that is provided by the U.S. Department of Agriculture. The total cost includes expenses such as housing, food, transportation, clothing, health care, child care, education and other miscellaneous expenses.
What is the self-sufficiency wage?
The self-sufficiency wage is the minimum level of employment earnings necessary to meet basic needs while maintaining self-sufficiency. The self-sufficiency wage is calculated for each county in Texas.
Where does the self -sufficiency wage data come from?
The self-sufficiency standard at the Center for Women’s Welfare, University of Washington. For more information visit Texas - Self Sufficiency Standard.
How is the self-sufficiency wage displayed in Texas Reality Check calculated?
The annual self-sufficiency wage in Texas Reality Check is calculated by multiplying the hourly self-sufficiency wage by 2,112 hours.