In this article, we look at the 10 poorest states in America. You can see how we ranked these states and read our detailed analysis on poverty in the United States by heading over to the 25 Poorest States in America.
10. Georgia
Poverty Rate: 13.1%
Population aged between 18 and 24 with college or associate degree: 37.3%
Population aged 25 and above with bachelor’s degree: 20.9%
Score: 1.52
Georgia is the eighth most populous state in the United States, that is known for hosting the Masters Golf Tournament, and for being home to the Martin Luther King Jr. National Historic Site. In 2021, an estimated 13.1% of the population lived in poverty, 37.3% of the age group considered held a college or associate degree, and just 20.9% of those aged 25 or above had a bachelor’s degree.
9. Alabama
Poverty Rate: 14.5%
Population aged between 18 and 24 with college or associate degree: 41.2%
Population aged 25 and above with bachelor’s degree: 16.6%
Score: 1.57
Alabama is home to significant landmarks from the Civil Rights Movement. 14.5% of the state’s residents live under conditions of poverty. Birmingham is the poorest city in Alabama having a poverty rate of 28.3%. The state ranks considerably low on bachelor’s degree attainment, but fares decently on youth with a college or associate degree.
8. Mississippi
Poverty Rate: 18.1%
Population aged between 18 and 24 with college or associate degree: 43.3%
Population aged 25 and above with bachelor’s degree: 15.4%
Score: 1.58
Mississippi is the poorest state in America in terms of poverty rates, with 18.1% of its population living below the line of poverty. Its capital, Jackson, is one of the poorest cities in the country where more than three in every ten residents live in poverty. Only 15.4% of the population aged 25 or above hold a bachelor’s degree. However, an encouraging trends has been observed when it comes to youth aged between 18 and 24. About 43.3% of them have a college or associate degree in 2021, which bodes well for the future if they decide to opt for further higher education.
7. Nevada
Poverty Rate: 12.1%
Population aged between 18 and 24 with college or associate degree: 35.2%
Population aged 25 and above with bachelor’s degree: 17.9%
Score: 1.60
Nevada, well known for its casinos and vibrant life, is located in the western region of the United States. More than 12 in 100 people in the state live below the line of poverty. The state scores low on education levels compared to the national average.
6. Kentucky
Poverty Rate: 14.6%
Population aged between 18 and 24 with college or associate degree: 39.5%
Population aged 25 and above with bachelor’s degree: 15.9%
Score: 1.67
Kentucky had a poverty rate of 14.6% in 2021, according to figures released by the U.S. Census Bureau. The state’s median household income of $55,454 was also well short of the national average. It also ranks low on the population aged 25 and above with a bachelor’s degree. All of these factors combine to make Kentucky one of the poorest states in America.
5. Oklahoma
Poverty Rate: 13.8%
Population aged between 18 and 24 with college or associate degree: 36.9%
Population aged 25 and above with bachelor’s degree: 18.3%
Score: 1.71
The U.S. Census Bureau has estimated that about 13.8% of Oklahoma’s residents live below the poverty line, according to results declared in the 2021 census. Lawton is the poorest city in the state with close to a quarter of its people suffering from poverty. 36.9% of the population aged between 18 and 24 have a college or associate degree, while 18.3% of those aged 25 and above hold a bachelor’s degree.
4. Arkansas
Poverty Rate: 15.1%
Population aged between 18 and 24 with college or associate degree: 38.8%
Population aged 25 and above with bachelor’s degree: 15.9%
Score: 1.78
Arkansas is a southern U.S. state bordering the Mississippi River. The state is known for its lakes, rivers, music, and extreme weather. Over 15% of the state’s population is affected by poverty, and only 15.9% of the population age group considered has attained a bachelor’s degree.
3. Louisiana
Poverty Rate: 17.3%
Population aged between 18 and 24 with college or associate degree: 38.1%
Population aged 25 and above with bachelor’s degree: 16.8%
Score: 1.83
Louisiana is the third poorest state in the United States based on our analysis which involved considering both poverty rates and education levels across states in the United States. Louisiana has the second highest poverty rate in the country at 17.3%. Lake Charles is the poorest city in the state, with 28.3% of its population living below the line of poverty. Only 16.8% of the state’s population aged 25 or above has a bachelor’s degree, whereas 38.1% of those aged between 18 and 24 have completed a college or associate degree in Louisiana.
2. West Virginia
Poverty Rate: 15%
Population aged between 18 and 24 with college or associate degree: 36%
Population aged 25 and above with bachelor’s degree: 14.2%
Score: 1.89
Poverty rate in West Virginia was recorded at 15% in 2021. Huntington is the poorest city in West Virginia, with an estimated 18.6% of its population living in poverty. About 14.2% of the population aged 25 and above holds a bachelor’s degree. Considering the metrics analyzed and weighed for this article, West Virginia is the least educated state in the US.
1. New Mexico
Poverty Rate: 16.7%
Population aged between 18 and 24 with college or associate degree: 35.7%
Population aged 25 and above with bachelor’s degree: 16%
Score: 1.90
Considering poverty and education levels, the poorest state in the United States is New Mexico. In 2021, an estimated 16.7% of its residents lived below the line of poverty, according to the U.S. Census Bureau. This is the third highest poverty rate among all 50 states in the US. Only 16% hold a bachelor’s degree in New Mexico, while 35.7% of those aged between 18 and 24 have a college or associate degree.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 25 States With The Lowest Poverty Rates In America and 50 Poorest Cities In Every State In The US.
