A $25,000 Salary Is Officially Middle Class If You Live In This New Jersey City

Earning $25,000 per year might not sound like much, but in Atlantic City, New Jersey, it's enough to land you squarely in the middle class. According to the United States Census Bureau, the seaside casino town has a median household income of $36,220. Pew Research states that anyone who makes between ⅔ and double the median income can be considered middle class, so an Atlantic City household making $24,147 technically qualifies. As of 2022, Pew Research also says the average household in the United States needs to make between $56,600 and $169,800 per year to make it to the middle class. So, Atlantic City has one of the lowest middle-class thresholds in the country.

Such a low number may come as a surprise, given the vanishing middle class in the U.S. and the fact that this income falls below the U.S. poverty threshold for a family of three. Atlantic City's lower income is tied to the local tourism and services industries, which, according to a Florida State University study, typically pays less than other sectors (via HR Drive). While the city may have a low barrier to reach middle-class status, the standard of living around that threshold might not be what you imagine.

While technically considered middle-class income, $24,147 — and even Atlantic City's median household income of $36,220 — falls below the local cost of living index. Salary.com reports that a four-person household in Atlantic City needs around $6,476 a month — or $77,712 per year — to cover the basics, while a single person needs $2,941 per month. That means that even a single worker would need to make over $10,000 more than the annual middle-class minimum income just to get by.

According to the Regional Plan Association, more than 59% of residents spend more than half of their income on housing. This leaves little room for other essentials and expenses. So, while earning $24,147 per year places Atlantic City residents above the cutoff, it may be far below what most people would need to cover their essentials without facing serious financial stress. This is especially true as rising inflation and tariffs continue to push up the prices of food, rent, and transportation, further stretching tight budgets and making surviving on a lower income less realistic.