Poverty Rate

How are we doing?

The poverty rate in the Tucson Metropolitan Statistical Area (MSA) was 19.3% in 2015. This ranked Tucson 11th among 12 western MSAs, among which the Denver and Colorado MSAs placed first with the lowest poverty rate (11.6%) and the El Paso MSA placed last with the highest (22.8%). Poverty rates were lowest among Asian and white individuals. By age breakdown (Under 18 years; 18-64 years; 65 years or more), the highest poverty rates occurred among those under 18 years, while the lowest rates were found among those 65 years or older. Poverty rates also varied by family type, with the highest rates found among female headed households with children under 5.

Why is it important?

The poverty rate is an important indicator of financial distress among households. Families whose income is near or below the poverty level have difficulty accessing necessities such as housing, food, and healthcare. Local poverty rates are also important drivers of government decisions related to spending on programs such as affordable housing, free and reduced school lunches, and other forms of public assistance. Further, poverty rates have been linked to undesirable social outcomes, reduced regional home ownership rates, as well as a decreased likelihood of attending college.

How do we compare?

American Indian and Alaska Native populations experienced higher poverty rates in the Tucson MSA (42.0%) and Arizona (38.0%) than nationally (28.3%). Asian (19.3%) and Hispanic (26.6%) populations also experienced higher rates in Tucson than the U.S., while Native Hawaiian and Pacific Islander populations experienced slightly lower rates in Tucson (20.2%) than the U.S. (21.0%).

Young populations experienced higher poverty rates in the Tucson MSA (27.5%) and Arizona (26.0%), in comparison to the U.S. (21.7%). The working-age population (18–64 years) also had higher poverty rates in Tucson at 19.3%, and Arizona at 17.5%, than the U.S. at 14.5%. Only those 65 years and older had lower poverty levels in Tucson and Arizona—8.5% and 8.8%, respectively—in comparison to 9.4% in the U.S.

Families with children under five had poverty rates roughly comparable to the general population in all three comparison geographies. Married couple-families had significantly lower rates at 9.4% in the Tucson MSA, 10.0% in Arizona, and 6.7% in the U.S. Female-headed households with no spouse present, and with children under five years, however, had significantly higher rates in all three geographies: 41.8% in Tucson, 42.2% in Arizona, and 46.3% in the U.S.

What are the key trends?

Poverty rates have risen since 2000, when the rates in the Tucson MSA, the state of Arizona, and the U.S. were 14.7%, 13.9%, and 12.4%, respectively. Stagnant wages combined with increased costs for housing and transportation, have contributed to increasing rates. As of 2015, the rates had risen to 19.3% in Tucson, 18.2% in Arizona, and 15.5% nationwide.

How is it measured?

Poverty rates are from U.S. Census Bureau American Community Survey (ACS) five-year estimates. Rates reported by the U.S. Census Bureau are derived from answers to ACS questions regarding household income, age, and family composition. Income includes “before tax earnings, unemployment compensation, workers' compensation, Social Security, Supplemental Security Income, public assistance, veterans' payments, survivor benefits, pension or retirement income, interest, dividends, rents, royalties, income from estates, trusts, educational assistance, alimony, child support, assistance from outside the household, and other miscellaneous sources”.  According to the U.S. Census Bureau, a family is considered below the poverty level if their annual household income falls below a threshold that is based on annual income, age, and family size. For example, the poverty threshold for a family of five with three related children under 18 years in 2015 was $28,286.