Florida residents tend to generate high passive income
Southwest Florida is a hotspot for people earning income from interest, investment dividends or rentals, according to a new report from the U.S. Chamber of Commerce.
Naples-Immokalee-Marco Island tops the list of medium-sized metros, with a median passive income of $19,700 per year. In this metropolitan area, 35.5% of households generate passive income and the median total household income is $75,000. The poverty rate is 9.3%.
Cape Coral-Fort Myers ranks fourth, with a median household passive income of $8,700 generated by 28.8% of households. The median total household income is $61,700 and the poverty rate is 11.3%.
The Naples-Immokalee-Marco Island area leads passive income numbers for all cities nationwide, according to the report, which uses information from the U.S. Census Bureau.
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The North Port-Sarasota-Bradenton metro area ranks sixth in the nation among mid-sized metro areas and 18th among all metro areas, with 36.2% of households receiving passive income. The median passive income for the region is $8,000 per year.
Nationally, according to data from the US Census Bureau, 20% of US households earn passive income in the form of dividends, interest or rental properties.
The median passive income is $4,200; with a median total family income of $65,000 and a poverty rate of 12.3%.
Medium-sized metropolitan areas have a population between 350,000 and 999,999 people; small metropolitan areas have 100,000 to 349,999 people and large metropolitan areas have 1 million or more people.
The researchers looked at 250 metropolitan areas in all 50 states.
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The research notes that the ability to earn passive income increases with total income, with passive income accounting for a larger share of that total income in wealthier households.
Passive income also varies by race and ethnicity, as well as location.
Census data has documented disparities in passive income by race and ethnicity that contribute to overall wealth disparities.
About 25% of non-Hispanic white households have passive income, compared to just 7% of Hispanic households and 6% of black households.
In addition to non-Hispanic whites, Asians are also more likely than other racial groups to earn passive income.
The median total household income in the North Port-Sarasota-Bradenton area is $64,900, the area also has a poverty rate of 9.2%.
Miami-Fort Lauderdale-West Palm Beach tops the list of major metropolitan areas with 16.9% of households generating a median passive income of $9,000. The median total household income is $59,500 and the poverty rate is 13.5%.
At the state level, Florida ranks second behind California, with 19.8% of households generating a median passive income of $6,000, a median total household income of $58,500, and a poverty rate by 12.7%.