Determining whether a given hourly wage is “good” depends on many factors. This article will examine $27 an hour specifically and look at where it stands compared to national averages, cost of living, and what kind of lifestyle it can support.
How $27/Hour Compares to Average Wages
$27 an hour amounts to an annual salary of $56,160 if working 40 hours a week for 52 weeks (assuming no overtime or bonuses). According to the Bureau of Labor Statistics, the median annual wage for all occupations in the US as of May 2021 was $45,760. So at $27/hour, you would be making significantly more than the median American worker.
Here’s how $27/hour stacks up against average wages for some specific occupations according to BLS data:
- Retail salesperson – $13.02/hour ($27,080 annual)
- Cashier – $11.37/hour ($23,660 annual)
- Food service manager – $23.78/hour ($49,462 annual)
- Registered nurse – $37.24/hour ($77,460 annual)
- Software developer – $48.54/hour ($100,950 annual)
As you can see, $27/hour is substantially higher than entry-level retail/service jobs. It is comparable to middle management roles and specialized skilled trades. However, it is still well below the average wages for highly educated professional careers like nursing or software engineering.
Cost of Living Comparisons
Although $27/hour is well above the overall national median wage, that doesn’t necessarily mean it is a “good” wage everywhere in the country. The cost of living can vary dramatically between states or metropolitan areas, so $27/hour will go much further in some places than others.
For example, let’s compare how far $27/hour might go in different cities:
| City | Typical Rent for 1BR Apartment | Estimated Take-Home Pay at $27/Hour | % of Take-Home Pay Going to Rent |
|---|---|---|---|
| San Francisco, CA | $3,500 | $4,160 | 84% |
| New York, NY | $2,800 | $4,160 | 67% |
| Chicago, IL | $1,650 | $4,160 | 40% |
| Houston, TX | $1,100 | $4,160 | 26% |
| Detroit, MI | $900 | $4,160 | 22% |
Based on typical rent prices, $27/hour would be nearly impossible to live on independently in San Francisco but provide a comfortable income in Houston or Detroit. While the gross pay is the same, the difference in costs of living make it go much further in some metro areas.
Lifestyle Supported by $27/Hour
Looking beyond just housing costs, what kind of lifestyle can $27/hour reasonably support? Here is an estimated monthly budget for someone earning this wage:
| Expense | Estimated Cost |
|---|---|
| Rent (median 1BR apartment) | $1,000 |
| Utilities | $150 |
| Groceries | $400 |
| Car payment | $300 |
| Car insurance | $100 |
| Gasoline | $200 |
| Cell phone | $100 |
| Internet/cable | $100 |
| Entertainment/dining out | $200 |
| Retirement savings (10%) | $870 |
| Total expenses | $3,420 |
Based on this hypothetical budget, $27 an hour would provide a middle-class lifestyle with some modest financial flexibility. You would be able to afford your own apartment, car, entertainment budget while also saving for retirement. However, this budget doesn’t leave a whole lot of room for major emergency expenses or costs like medical bills. You would also need to be fairly frugal about discretionary spending and large purchases.
Pros of a $27/Hour Salary
Some of the key advantages and positive features of earning $27 an hour include:
- Ability to live independently without needing roommates
- Capacity to build savings and invest for the future
- Option to purchase a used car or modest new car
- Financial stability to raise a small family, depending on location
- Lower stress about covering basic living expenses and bills
Cons of a $27/Hour Salary
Some of the disadvantages or downsides of earning $27/hour include:
- May still struggle with rent payments in very high cost cities like NYC or San Francisco
- Difficult to afford large emergency expenses
- Less budget room for dining out, travel, entertainment on a regular basis
- Potentially tight budget for family with multiple kids
- No flexibility to stop working unlike with higher wage jobs
Conclusion
$27 an hour equates to an annual salary of around $56,000, which is well above the national average. However, it may be barely enough to get by in high cost coastal cities but provide a very comfortable middle-class lifestyle in many interior US metro areas. This wage provides financial stability and flexibility but limits discretionary spending capacity and long-term wealth building potential. Overall, $27 an hour provides a solid income for a single person or smaller family but is not an exorbitant wage by any means, especially in certain parts of the country.