Poverty status is not defined for households - only for families and unrelated individuals. Because some data users need poverty data at the household level, we have provided a few matrices that show tallies of households by the poverty status of the householder. In these matrices, the householder's poverty status is computed exactly the same way as described above. Therefore, to determine whether or not a "household" was in poverty, anyone who is not related to the householder is ignored.
Example #1: Household #1 has six members - a married couple, Alice and Albert, with their 10-year-old nephew, Aaron, and another married couple, Brian and Beatrice, with their 6-year-old son, Ben. Alice is the householder. Brian, Beatrice, and Ben are not related to Alice.
Household member |
Relationship to Alice |
Income |
Alice |
self (householder) |
$5,000 |
Albert |
spouse |
$40,000 |
Aaron |
related child |
$0 |
Brian |
unrelated individual |
$0 |
Beatrice |
unrelated individual |
$5,000 |
Ben |
unrelated individual |
$0 |
The total income of Alice's family is $45,000, and their poverty threshold is $13,410, since there are three people in the family, with one member under age 18. Their income is greater than their threshold, so they are not classified as poor. Their ratio of income to poverty is 3.36 ($45,000 divided by $13,410). Alice's income-to-poverty ratio is also 3.36, because everyone in the same family has the same poverty status.
Even though Brian, Beatrice and Ben would be classified as poor if they lived in their own household, the household is not classified as poor because the householder, Alice, is not poor, as was shown in the computation above.
Example #2: Household #2 consists of four adults, Claude, Danielle, Emily, and Francis, who are unrelated to each other and are living as housemates. Claude, who is age 30, is the householder.
Household member |
Relationship to Claude |
Income |
Claude |
self (householder) |
$4,500 |
Danielle |
unrelated individual |
$82,000 |
Emily |
unrelated individual |
$28,000 |
Francis |
unrelated individual |
$40,000 |
Because Claude is under age 65 and is not living with any family members, his poverty threshold is $8,667. Since his income, $4,500, is less than his threshold, he is considered poor. His ratio of income to poverty is 0.52 ($4,500 divided by $8,667).
Household #2 would be classified as poor because its householder, Claude, is poor, even though the other household members (who are not related to Claude) are not in poverty.