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Raising a family on one paycheck may feel out of reach. But new data shows where a single income can still support a stay-at-home parent and where it is most difficult.
By
Paige Cerulli
published
8 March 2026
in Guides
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Many families with children consider having one parent stay home. Sometimes the decision is driven by lifestyle preferences, but rising child care costs are also pushing more families to rethink whether two incomes always make financial sense.
The ability to live on a single income varies widely depending on where a family lives. Housing, taxes and everyday expenses differ significantly from state to state, which can make living on one income easier to manage in some places than others.
In lower-cost states, a single salary may be enough to support a parent staying home with a child. In higher cost areas, however, families often need a much larger income to make the same arrangement work.
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Sign upThe states where a single income stretches the furthest
A single income stretches further in states where the overall cost of living is lower. Housing, taxes and everyday expenses tend to be more affordable, making it easier for one working parent to support a household while the other stays home.
According to an analysis by SmartAsset, the following states require the lowest minimum income for one working parent to support a three-person household with a stay-at-home parent and one child.
- West Virginia: $68,099
- Arkansas: $68,141
- Mississippi: $70,242
- Kentucky: $70,408
- North Dakota: $70,949
Several factors help make these states more affordable for single-income families. Housing costs tend to be lower because demand for homes is typically lower than in major metropolitan markets.
In states like West Virginia and Arkansas, home prices are well below the national median, according to data from the National Association of Realtors. Lower housing costs can significantly reduce the largest expense in most household budgets.
Everyday costs can also be more manageable. Utilities, transportation and taxes are often lower in many of these states, and shorter commutes or less reliance on expensive public transit systems can reduce monthly expenses. These factors together make it easier for a household to rely on a single paycheck.
Where a single-income household is hardest to maintain
In higher cost states, supporting a family on a single income becomes much more difficult. Higher housing prices, taxes and everyday living expenses mean a working parent must earn significantly more to support a stay-at-home parent and child.
According to the SmartAsset analysis, these states require the highest minimum income for one working parent to support a three-person household:
- Hawaii: $102,733
- California: $97,656
- Massachusetts: $97,261
- New York: $92,290
- Connecticut: $90,542
Working parents often need a much higher income in these states because of the overall cost of living. Housing prices tend to be significantly higher, particularly in areas with strong job markets and desirable climates, which increases one of the largest household expenses.
Other expenses also add to the difference. Child care, utilities, transportation and everyday goods are typically more expensive in higher cost states, making it harder for families to rely on a single paycheck.
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Why childcare costs are reshaping family decisions
The rising cost of child care has prompted some families to reconsider whether two incomes still make financial sense or whether having one parent stay home could actually save money. For many households, the cost of care for one child can rival a monthly mortgage payment. According to the Economic Policy Institute, child care for one infant now costs more than public college tuition in 38 states and Washington, D.C.
Costs also vary widely by location. In Mississippi, child care averages about $572 per month, while in Washington, D.C., it averages roughly $2,363 per month.
Because of these differences, some families may find that the income lost when a parent leaves the workforce is close to what they were paying for child care. Depending on location and household income, staying home with a child can sometimes be a financially practical option.
Financial planning matters more than geography
Before switching to a single-income household, families should make sure key financial safeguards are in place to help weather unexpected events such as job loss or major expenses.
- Emergency savings: Saving three to six months of living expenses can help cover essential costs such as housing, groceries and utilities if the working spouse loses their job. An emergency fund can also help pay for unexpected expenses like a car repair or home maintenance without relying on credit cards or other debt.
- Affordable housing: Financial experts generally recommend that families spend no more than 30% of their take-home pay on housing. Keeping housing costs within this range can make it easier to manage other expenses and reduce financial stress if costs rise or income changes.
- Health insurance coverage: Families should review how health insurance will work if one parent leaves their job. In many cases, the household will rely on the working spouse’s employer-sponsored plan. Understanding premiums, deductibles and coverage options ahead of time can help avoid unexpected medical costs.
- Retirement contributions: When a parent leaves the workforce, they may lose employer retirement contributions. Families should consider how they will continue saving for retirement, such as increasing contributions through the working spouse’s plan or using a spousal IRA.
What families should calculate before switching to one income
If you are considering switching to a one-income household, it is important to evaluate how the change will affect your family’s finances before making a decision.
Start by comparing child care costs with the income your family would lose if one parent left the workforce. Depending on how many children you have and the rates in your area, the cost of care may be close to or even exceed the income from the second job.
Families should also think about the long-term impact on retirement savings. When a parent leaves the workforce, they may lose employer retirement contributions and years of potential investment growth. Even if the household continues saving through a spousal IRA or the working spouse’s retirement plan, the change can affect long-term balances.
Health insurance is another factor to review. A single-income household will typically rely on the working spouse’s employer plan, so it is important to understand premiums, deductibles and other out-of-pocket costs before making the transition.
Finally, it can help to think about future career options. Some parents plan to return to work once their children are older, and staying connected to professional networks or maintaining relevant skills can make that transition easier.
Is a one-income household still possible today?
As the cost of living continues to rise, many families find it harder to rely on a single income. Whether a family can afford to have a stay-at-home parent often depends on factors such as income, location and overall household expenses. In the right circumstances, however, careful planning and the right income level can still make a one-income household possible.
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Paige CerulliContributorPaige Cerulli is a freelance journalist and content writer with more than 15 years of experience. She specializes in personal finance, health, and commerce content. Paige majored in English and music performance at Westfield State University and has received numerous awards for her creative nonfiction. Her work has appeared in The U.S. News & World Report, USA Today, GOBankingRates, Top Ten Reviews, TIME Stamped Shopping and more. In her spare time, Paige enjoys horseback riding, photography and playing the flute. Connect with her on LinkedIn.
