Asset Poverty Rate

Definition

Percentage of households without sufficient net worth to subsist at the poverty level for three months in the absence of income, 2010.

The threshold used to determine the asset poverty rate varies by family size. A family of four with net worth less than $5,763 in 2012 is asset poor.

Data are point estimates produced from a national survey with relatively small samples for some states, which can result in imprecise estimates and ranks. States are not ranked on this measure because estimates are too imprecise to say with confidence how the state compares to other states. For more information on how we measured precision and to download margin of error data for each state, see  here.

Description

This measure expands the notion of poverty to include how much of a financial cushion a household has to weather financial crises such as a job loss, medical emergency or the need to fix a car. Three months’ of living expenses at the poverty level is a conservative cushion for a family that loses its income, and asset poverty includes durable assets, such as a home or business, that would need to be liquidated to cover day-to-day needs. Even with this conservative definition, asset poverty exceeds income poverty in all states and the District of Columbia except for West Virginia.

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Asset Poverty Rate

State	Asset Poverty Rate (%)
United States	26.0%
Alabama	21.2%
Alaska	—
Arizona	30.0%
Arkansas	28.4%
California	29.9%
Colorado	26.3%
Connecticut	23.5%
Delaware	23.8% *
District of Columbia	30.3%
Florida	29.6%
Georgia	29.3%
Hawaii	14.6% *
Idaho	31.9% *
Illinois	26.4%
Indiana	22.9%
Iowa	22.8%
Kansas	22.2%
Kentucky	23.7%
Louisiana	26.1%
Maine	22.9%
Maryland	22.8%
Massachusetts	27.1%
Michigan	25.8%
Minnesota	19.3%
Mississippi	29.5%
Missouri	22.2%
Montana	25.5% *
Nebraska	21.1%
Nevada	43.9%
New Hampshire	21.0%
New Jersey	26.0%
New Mexico	26.0%
New York	32.9%
North Carolina	26.8%
North Dakota	—
Ohio	26.3%
Oklahoma	23.4%
Oregon	24.1%
Pennsylvania	19.6%
Rhode Island	27.2%
South Carolina	23.9%
South Dakota	26.6% *
Tennessee	23.0%
Texas	25.9%
Utah	23.1%
Vermont	20.6%
Virginia	17.7%
Washington	23.2%
West Virginia	15.5%
Wisconsin	21.4%
Wyoming	21.5% *

Source

Survey of Income and Program Participation, 2008 Panel, Wave 7. Washington, DC: U.S. Department of Commerce, Census Bureau, 2010. Data calculated by the Bay Area Council Economic Institute.