Special Report

This Is the City Hit Hardest by Extreme Poverty in Indiana

Samuel Stebbins

Published: September 20, 2021 8:00 am

Last Updated: September 20, 2021 9:29 am

There are an estimated 39.5 million Americans living below the poverty line, which, in the lower 48 states, is an annual income threshold of $12,880 for an individual and $26,500 for a family of four (Alaska and Hawaii have a slightly higher threshold). Living in poverty can have serious consequences and impacts nearly every aspect of life — and those problems can be compounded for those who are facing poverty while also living in very poor neighborhoods.

Residents of poor neighborhoods often struggle with higher crime rates, limited employment opportunities, lower school quality, and poor health outcomes. For those living on poverty level income, each of these factors reduces the likelihood of upward economic mobility.

In Muncie, Indiana, 18.7% of those living below the poverty line reside in a neighborhood with a poverty rate of 40% or higher — the highest concentrated poverty rate of any metro area in the state where concentrated poverty is not distorted by a large college and university student population.

Homeownership is one of the most practical ways to build wealth in the United States. In Muncie’s poorest neighborhoods, the homeownership rate is only 38.3%. Meanwhile, across the rest of the city, the homeownership rate stands at 71.9%.

All data used in this story are five-year estimates from the U.S. Census Bureau’s 2019 American Community Survey. We only considered census tracts, or neighborhoods, with at least 500 people and college or graduate school enrollment below 50%. Metro areas were also excluded if over 25% of the population in tracts or neighborhoods of concentrated poverty were college or university students.