Basic Necessities Affordability Index – Minimum Standard (BNAI-M)
Basic Necessities Affordability Index – Minimum Standard (BNAI-M), 2026
The Basic Necessities Affordability Index – Minimum Standard (BNAI-M) attempts to answer a question that ordinary inflation statistics do not directly answer:
Can Americans in the lower half of the income distribution afford the minimum necessities required for a safe, healthy and functioning life?
The BNAI-M differs from an expenditure-based affordability index.
An expenditure index measures what households actually spend.
The BNAI-M estimates what households would need to spend to maintain a minimum acceptable standard of living.
This distinction matters because households may reduce food consumption, delay medical treatment, live in inadequate housing, reduce heating or cooling, or postpone necessary transportation expenses when money is unavailable.
Lower spending does not necessarily indicate better affordability.
Executive Summary
The provisional 2026 BNAI-M indicates that basic necessities place an extremely heavy burden on the lower half of the United States income distribution.
| Summary | 2026 | ||
| Bottom 10% extended minimum-needs burden | 282.5% of income | ||
| 10–20% burden | 120.7% of income | ||
| 20–30% burden | 90.7% of income | ||
| 30–40% burden | 72.3% of income | ||
| 40–50% burden | 57.2% of income | ||
| Bottom 50% combined extended burden | 87.8% of income | ||
| Change from 2025 to June 2026 | Approximately 1.9% less affordable | ||
| Change from 2019 to June 2026 | Approximately 1.3% less affordable overall |
The results suggest that:
- the bottom 10 percent has reported income far below the modeled cost of minimum necessities;
- the 10–20 percent group cannot meet the extended minimum-needs basket without additional resources;
- the 20–30 percent group has very little remaining income after meeting modeled necessities;
- affordability deteriorated during the first half of 2026;
- household energy and transportation are important contributors to current affordability pressure.
Status of the 2026 Estimates
The 2024 values are anchored to published federal data.
The 2025 and June 2026 figures are modeled estimates because complete 2025 and 2026 Consumer Expenditure Survey income-decile data are not yet available.
The estimates should therefore be described as:
BNAI-M provisional national estimates.
They are not official statistics produced by BLS, Census, BEA or another federal agency.
Population Studied
The lower 50 percent of U.S. consumer units is divided into five groups.
Bottom 0–10 Percent
| Income percentile | 0–10% | ||
| 2024 mean income | $9,612 | ||
| Estimated 2025 income | $10,006 | ||
| Estimated June 2026 income | $10,186 | ||
| Average consumer-unit size | 1.6 people | ||
| Average children under 18 | 0.3 | ||
| Average earners | 0.4 |
10–20 Percent
| Income percentile | 10–20% | ||
| 2024 mean income | $23,805 | ||
| Estimated 2025 income | $24,781 | ||
| Estimated June 2026 income | $25,227 | ||
| Average consumer-unit size | 1.6 people | ||
| Average children under 18 | 0.3 | ||
| Average earners | 0.5 |
20–30 Percent
| Income percentile | 20–30% | ||
| 2024 mean income | $36,188 | ||
| Estimated 2025 income | $38,287 | ||
| Estimated June 2026 income | $38,976 | ||
| Average consumer-unit size | 2.0 people | ||
| Average children under 18 | 0.4 | ||
| Average earners | 0.7 |
30–40 Percent
| Income percentile | 30–40% | ||
| 2024 mean income | $49,681 | ||
| Estimated 2025 income | $52,562 | ||
| Estimated June 2026 income | $53,509 | ||
| Average consumer-unit size | 2.2 people | ||
| Average children under 18 | 0.4 | ||
| Average earners | 1.0 |
40–50 Percent
| Income percentile | 40–50% | ||
| 2024 mean income | $65,170 | ||
| Estimated 2025 income | $68,428 | ||
| Estimated June 2026 income | $69,660 | ||
| Average consumer-unit size | 2.3 people | ||
| Average children under 18 | 0.5 | ||
| Average earners | 1.2 |
The 2024 income and household-size figures come from the Bureau of Labor Statistics Consumer Expenditure Survey.
The 2025 estimates apply the Bureau of Economic Analysis experimental income-distribution nowcast:
- Bottom 0–20%: +4.1%
- 20–40%: +5.8%
- 40–60%: +5.0%
The June 2026 estimates provisionally apply approximately 1.8 percent nominal personal-income growth during the first half of 2026.
U.S. Bureau of Labor Statistics – Consumer Expenditure Survey Tables
U.S. Bureau of Economic Analysis – Distribution of Personal Income
Federal Minimum-Needs Benchmark
The primary benchmark is the Bureau of Labor Statistics Supplemental Poverty Measure threshold.
In July 2026, BLS corrected and reissued Supplemental Poverty Measure thresholds covering 2019 through 2024.
The corrected 2024 national thresholds for a two-adult, two-child household were approximately:
Renter
| 2024 minimum-needs threshold | $39,220 |
Owner With Mortgage
| 2024 minimum-needs threshold | $39,231 |
Owner Without Mortgage
| 2024 minimum-needs threshold | $32,879 |
The renter threshold is used as the principal national reference in the provisional BNAI-M because renters are particularly common among lower-income households.
U.S. Bureau of Labor Statistics – Corrected Supplemental Poverty Measure Thresholds
What the Minimum-Needs Benchmark Includes
The Supplemental Poverty Measure threshold includes:
- food;
- clothing;
- shelter;
- utilities;
- telephone;
- internet;
- household supplies;
- personal care;
- non-work transportation;
- an allowance for other basic needs.
Healthcare and work-related expenses are treated separately in the extended version of the index.
Component Shares
Food
| Approximate share of minimum-needs threshold | 29.8% |
Shelter
| Approximate share | 36.5% |
Utilities
| Approximate share | 6.6% |
For this study, utilities are divided into:
- household energy;
- water and sewer.
Approximately 76.5 percent of the utility amount is assigned to household energy and approximately 23.5 percent to water and public services.
Telephone
| Approximate share | 4.5% |
Internet
| Approximate share | 1.8% |
Clothing
| Approximate share | 4.5% |
Other Basic Needs
| Approximate share | 16.4% |
This category includes household supplies, personal care, non-work transportation and other basic expenses.
June 2026 Minimum-Needs Basket
The minimum-needs basket varies by income group because average consumer-unit size varies.
Food
| 0–10% | $7,474 | ||
| 10–20% | $7,474 | ||
| 20–30% | $8,695 | ||
| 30–40% | $9,361 | ||
| 40–50% | $9,524 |
Shelter
| 0–10% | $9,150 | ||
| 10–20% | $9,150 | ||
| 20–30% | $10,645 | ||
| 30–40% | $11,460 | ||
| 40–50% | $11,660 |
Household Energy
Household energy includes:
- electricity;
- natural gas;
- fuel oil;
- other residential heating fuels;
- energy used for heating;
- energy used for cooling;
- ordinary essential electrical use.
| 0–10% | $1,265 | ||
| 10–20% | $1,265 | ||
| 20–30% | $1,472 | ||
| 30–40% | $1,584 | ||
| 40–50% | $1,612 |
These figures should eventually be adjusted by region because heating and cooling requirements vary substantially by climate.
Water and Sewer
| 0–10% | $389 | ||
| 10–20% | $389 | ||
| 20–30% | $452 | ||
| 30–40% | $487 | ||
| 40–50% | $495 |
Telephone
| 0–10% | $1,129 | ||
| 10–20% | $1,129 | ||
| 20–30% | $1,314 | ||
| 30–40% | $1,414 | ||
| 40–50% | $1,439 |
Internet
| 0–10% | $454 | ||
| 10–20% | $454 | ||
| 20–30% | $529 | ||
| 30–40% | $569 | ||
| 40–50% | $579 |
Clothing
| 0–10% | $1,123 | ||
| 10–20% | $1,123 | ||
| 20–30% | $1,307 | ||
| 30–40% | $1,407 | ||
| 40–50% | $1,431 |
Other Basic Needs
This category includes non-work transportation, household supplies and personal care.
| 0–10% | $4,115 | ||
| 10–20% | $4,115 | ||
| 20–30% | $4,788 | ||
| 30–40% | $5,154 | ||
| 40–50% | $5,244 |
Core Minimum-Needs Total
Bottom 0–10%
| Estimated June 2026 income | $10,186 | ||
| Core minimum-needs cost | $25,099 | ||
| Income remaining | −$14,913 | ||
| Minimum-needs burden | 246.4% |
10–20%
| Estimated June 2026 income | $25,227 | ||
| Core minimum-needs cost | $25,099 | ||
| Income remaining | +$128 | ||
| Minimum-needs burden | 99.5% |
20–30%
| Estimated June 2026 income | $38,976 | ||
| Core minimum-needs cost | $29,201 | ||
| Income remaining | +$9,775 | ||
| Minimum-needs burden | 74.9% |
30–40%
| Estimated June 2026 income | $53,509 | ||
| Core minimum-needs cost | $31,436 | ||
| Income remaining | +$22,073 | ||
| Minimum-needs burden | 58.7% |
40–50%
| Estimated June 2026 income | $69,660 | ||
| Core minimum-needs cost | $31,984 | ||
| Income remaining | +$37,676 | ||
| Minimum-needs burden | 45.9% |
Healthcare Supplement
Healthcare is not included in the SPM threshold in the same manner as food, shelter and utilities.
The Supplemental Poverty Measure instead treats medical out-of-pocket expenses as deductions from available household resources.
For this provisional BNAI-M, healthcare expenditures from the Consumer Expenditure Survey are used as a proxy for required healthcare costs and adjusted to 2026 prices.
This remains one of the weaker elements of the model because actual healthcare spending may underestimate actual healthcare need.
| 0–10% | $2,933 | ||
| 10–20% | $4,413 | ||
| 20–30% | $4,863 | ||
| 30–40% | $5,413 | ||
| 40–50% | $5,622 |
Work-Related Expenses
The Supplemental Poverty Measure deducts necessary work-related expenses from household resources.
For 2024, Census reported median weekly work expenses of $41.17.
The SPM methodology uses 85 percent of the median weekly amount.
For this provisional model, the allowance is adjusted using the average number of earners in each income group.
| 0–10% | $745 | ||
| 10–20% | $931 | ||
| 20–30% | $1,304 | ||
| 30–40% | $1,863 | ||
| 40–50% | $2,235 |
U.S. Census Bureau – Poverty in the United States: 2024
Extended Minimum-Needs Results
The extended version adds healthcare and work-related expenses to the core minimum-needs basket.
Bottom 0–10%
| Core minimum needs | $25,099 | ||
| Healthcare proxy | $2,933 | ||
| Work expenses | $745 | ||
| Extended minimum | $28,778 | ||
| Estimated income | $10,186 | ||
| Income remaining | −$18,591 | ||
| Extended burden | 282.5% |
10–20%
| Core minimum needs | $25,099 | ||
| Healthcare proxy | $4,413 | ||
| Work expenses | $931 | ||
| Extended minimum | $30,444 | ||
| Estimated income | $25,227 | ||
| Income remaining | −$5,217 | ||
| Extended burden | 120.7% |
20–30%
| Core minimum needs | $29,201 | ||
| Healthcare proxy | $4,863 | ||
| Work expenses | $1,304 | ||
| Extended minimum | $35,368 | ||
| Estimated income | $38,976 | ||
| Income remaining | +$3,608 | ||
| Extended burden | 90.7% |
30–40%
| Core minimum needs | $31,436 | ||
| Healthcare proxy | $5,413 | ||
| Work expenses | $1,863 | ||
| Extended minimum | $38,712 | ||
| Estimated income | $53,509 | ||
| Income remaining | +$14,796 | ||
| Extended burden | 72.3% |
40–50%
| Core minimum needs | $31,984 | ||
| Healthcare proxy | $5,622 | ||
| Work expenses | $2,235 | ||
| Extended minimum | $39,842 | ||
| Estimated income | $69,660 | ||
| Income remaining | +$29,819 | ||
| Extended burden | 57.2% |
What the Extended Results Mean
Severe Shortfall: Bottom 0–10%
The estimated income of the bottom decile is dramatically below the minimum-needs requirement.
Reported money income alone cannot support the modeled minimum standard.
Households in this group therefore depend heavily on combinations of:
- public benefits;
- family assistance;
- savings;
- borrowing;
- subsidized housing;
- Medicaid;
- SNAP;
- other resources not captured by reported current money income.
Minimum-Needs Deficit: 10–20%
The 10–20 percent group is approximately able to meet the core minimum basket before healthcare and work expenses.
After those expenses are included, the modeled annual deficit is approximately:
$5,217
This suggests that the second income decile cannot meet the full extended minimum standard from reported income alone.
Highly Constrained: 20–30%
The 20–30 percent group uses approximately:
90.7 percent
of income for modeled minimum necessities.
Only approximately:
$3,608 per year
remains.
That equals approximately:
$301 per month
for emergencies, debt payments, major repairs, replacement of durable goods, savings and expenses not fully represented in the model.
Constrained: 30–40%
The 30–40 percent group uses approximately:
72.3 percent
of income for modeled minimum necessities.
Approximately:
$14,796
remains annually.
Significant but Manageable Burden: 40–50%
The 40–50 percent group uses approximately:
57.2 percent
of income for modeled minimum necessities.
Approximately:
$29,819
remains annually.
Bottom 50 Percent Combined
Core Minimum-Needs Burden
| 2024 | 72.8% | ||
| 2025 estimate | 71.1% | ||
| June 2026 estimate | 72.4% |
Extended Minimum-Needs Burden
| 2024 | 86.1% | ||
| 2025 estimate | 86.1% | ||
| June 2026 estimate | 87.8% |
Under the extended provisional measure, approximately:
87.8 percent
of the combined income of the bottom half is required to meet modeled basic necessities.
This is a weighted aggregate measure.
It does not mean that every household in the lower half spends exactly 87.8 percent of income on necessities.
BNAI-M: 2025 = 100
Bottom 50% Combined
| 2025 | 100 | ||
| June 2026 | 101.9 |
This indicates that modeled minimum necessities became approximately:
1.9 percent less affordable
during the first half of 2026.
The provisional model produces approximately the same percentage movement for each income group because the current 2026 cost adjustment is applied broadly across the minimum-needs basket.
Future versions should replace this assumption with decile-specific and geographically specific price measures.
Historical Comparison
Bottom 0–10%
| 2019 | 263.8% | ||
| 2024 | 245.3% | ||
| 2025 estimate | 241.8% | ||
| June 2026 estimate | 246.4% |
10–20%
| 2019 | 102.2% | ||
| 2024 | 99.0% | ||
| 2025 estimate | 97.6% | ||
| June 2026 estimate | 99.5% |
20–30%
| 2019 | 73.2% | ||
| 2024 | 75.8% | ||
| 2025 estimate | 73.5% | ||
| June 2026 estimate | 74.9% |
30–40%
| 2019 | 57.4% | ||
| 2024 | 59.4% | ||
| 2025 estimate | 57.7% | ||
| June 2026 estimate | 58.7% |
40–50%
| 2019 | 46.2% | ||
| 2024 | 46.1% | ||
| 2025 estimate | 45.1% | ||
| June 2026 estimate | 45.9% |
Bottom 50% Combined Historical Burden
| 2019 | 71.5% | ||
| 2024 | 72.8% | ||
| 2025 estimate | 71.1% | ||
| June 2026 estimate | 72.4% |
The aggregate minimum-needs burden is therefore slightly higher in June 2026 than in 2019.
Historical BNAI-M: 2019 = 100
| 0–10% | 93.4 | ||
| 10–20% | 97.4 | ||
| 20–30% | 102.4 | ||
| 30–40% | 102.3 | ||
| 40–50% | 99.4 | ||
| Bottom 50% combined | 101.3 |
Using 2019 as the base year, the minimum-needs burden of the bottom 50 percent collectively is approximately:
1.3 percent higher
in June 2026.
Household Energy Affordability
Household energy deserves separate attention because it is both essential and difficult for households to eliminate.
It includes:
- electricity;
- heating;
- cooling;
- natural gas;
- fuel oil;
- essential appliance use;
- refrigeration;
- lighting;
- hot water.
The modeled 2026 minimum annual energy requirement ranges from approximately:
$1,265
for the lowest two deciles to approximately:
$1,612
for the 40–50 percent group.
A national average conceals substantial differences.
Future regional versions should account for:
- winter heating requirements;
- summer cooling requirements;
- regional electricity prices;
- natural-gas availability;
- fuel-oil dependence;
- building efficiency.
A household in Minnesota may require considerably more winter heating than a household in coastal California.
A household in Arizona may require considerably more cooling.
BNAI-E Versus BNAI-M
The affordability project should maintain two parallel measures.
BNAI-E
| Full name | Basic Necessities Affordability Index – Expenditure | ||
| Question | What did households actually spend? |
BNAI-M
| Full name | Basic Necessities Affordability Index – Minimum Standard | ||
| Question | What would households need to spend to maintain a minimum acceptable standard of living? |
The distinction is important.
If actual expenditure is below the minimum-needs estimate, households may be coping by:
- purchasing less food;
- choosing lower-quality food;
- postponing medical care;
- reducing heating;
- reducing air conditioning;
- living in overcrowded housing;
- postponing vehicle repairs;
- borrowing;
- drawing down savings;
- depending on relatives;
- relying on public benefits.
Therefore falling expenditure does not automatically mean improving affordability.
Market Cost Versus Net Household Cost
The next major development of the BNAI-M should create two versions.
BNAI-M Market Cost
This measures the cost of purchasing minimum necessities before means-tested assistance.
It answers:
What does a minimum standard of living actually cost in the marketplace?
BNAI-M Net Household Cost
This subtracts major government benefits and subsidies.
Potential adjustments include:
- SNAP;
- Medicaid;
- ACA premium subsidies;
- housing assistance;
- LIHEAP;
- refundable tax credits;
- other major benefits.
It answers:
How much must the household actually provide from its own resources after public assistance?
Comparing these two measures would reveal how much the social safety net reduces the affordability gap.
Important Limitations
The BNAI-M remains a provisional research model.
Major limitations include:
- 2025 and 2026 income-decile values are modeled estimates;
- the Supplemental Poverty Measure is expenditure-derived rather than a purely engineering-based minimum-needs basket;
- healthcare currently uses a provisional expenditure proxy;
- actual healthcare spending may understate unmet healthcare need;
- work-related expenses are not exclusively transportation expenses;
- housing costs vary significantly by region;
- household energy requirements vary by climate;
- transportation costs vary dramatically between urban and rural areas;
- public transportation availability varies;
- government assistance can significantly reduce household out-of-pocket costs;
- taxes and refundable credits are not yet fully integrated;
- mean values can conceal large differences within each income group.
Recommended Development of the Index
Future versions should add:
- state-level BNAI-M estimates;
- metropolitan-area estimates;
- rural affordability estimates;
- renter versus homeowner estimates;
- regional heating and cooling adjustments;
- public transportation versus automobile-dependent household models;
- household-size-specific minimum baskets;
- separate healthcare-need models;
- government-benefit adjustments;
- taxes and refundable tax credits;
- childcare where applicable;
- disability-related costs;
- elderly-household minimum-needs models.
Conclusion
The Basic Necessities Affordability Index – Minimum Standard attempts to measure something that headline inflation statistics do not directly show:
whether Americans actually have enough income to obtain the necessities required for a safe and functioning life.
The provisional 2026 results indicate that the lowest portions of the income distribution face extremely severe affordability constraints.
The bottom 10 percent has reported income far below the modeled minimum-needs requirement.
The 10–20 percent group shows an estimated annual deficit of more than $5,000 once healthcare and work-related expenses are included.
The 20–30 percent group has only approximately $3,600 remaining annually after modeled minimum necessities.
For the bottom half collectively, the extended minimum-needs basket consumes approximately 87.8 percent of modeled income.
The BNAI-M also indicates that minimum necessities became approximately 1.9 percent less affordable during the first half of 2026 compared with the 2025 estimate.
Compared with 2019, the aggregate core minimum-needs burden is approximately 1.3 percent higher.
The central question therefore is not simply whether wages increased or inflation declined.
The more meaningful question is:
How much income remains after the unavoidable costs of maintaining a safe, healthy and functioning life have been paid?
