One In Three National Capital Area Households Still Can’t Afford The Basics, New ALICE Data Shows

New data show 718,709 households fall short of a basic household budget, with the steepest struggles among older adults, Black and Hispanic families, and some neighborhoods left behind even as county-wide numbers hold steady

WASHINGTON, D.C. (September 14, 2026) — United Way of the National Capital Area (United Way NCA), in partnership with United For ALICE, today released the 2026 State of ALICE in the National Capital Area report. The report finds that in 2024, 32.5% of households in the region—718,709 households—earned above the poverty line but still could not afford basics like housing, child care, food, transportation and health care.

The share of struggling households barely moved since the last report, which found 33% of households live below the ALICE line in 2023. ALICE stands for Asset Limited, Income Constrained, Employed. It describes people who work but still can’t make ends meet.

“While this report continues tracking financial hardship year over year, it shows what our Greater Washington region was facing before the federal job losses, cuts to public assistance and dramatic rise in food and rent through 2025,” said Dr. Nicole Cooper, Chief External Affairs and Transformation Officer, United Way NCA. “Steady numbers don’t mean steady lives. Behind every percentage point are families making hard choices between rent, food, and health care. We have to keep building real, local solutions that help people get and stay ahead.”

The Cost of Living

The ALICE Household Survival Budget is a bare-bones estimate of what it costs to live in the region. It does not include savings, debt payments or financial emergencies. In 2024:

• A single adult needed at least $23.81 an hour, or $49,515 a year, to cover basic costs.
• A family of four (two working adults, one infant and one preschooler) needed a combined $57.14 an hour, or $118,851 a year.

Those costs continue to outpace what many jobs pay in the region, even though the National Capital Area’s median household income, $132,450, is well above the national figure of $83,730. 

For example, two full-time workers in common regional jobs, such as a cook and a bank teller, together earned about $73,098 in 2024, tens of thousands of dollars short of what a family of four needed just to cover the basics.

Hardships Among Demographics

The report finds that some groups face far steeper odds than others. Households that fall below the ALICE threshold are led by:

• Someone 65 or older: 41% 
• Black households: 46%
• Hispanic households: 41% 
• White households: 23%
• Single adults and people sharing a home with a roommate or partner: 31%
• Families raising children: 28%

Zip Code Matters

Struggles also vary by ZIP code. In Virginia, 24% of Loudoun County households fall below the ALICE line. In Manassas Park, that number is 46%. In Prince George’s County, Maryland, it’s 43%, and in the District of Columbia, it’s 37%. Even in places where countywide numbers look steady, many individual neighborhoods still see most households struggling to get by, a sign that economic averages alone can hide where help is needed most.

Eastern Prince William County stands out as one of the region’s most significant concentrations of financial hardship. Multiple census tracts in this area have more than 60–75% of households living below the ALICE Threshold, even as the area undergoes rapid transformation through substantial public and private investment. This juxtaposition underscores a critical opportunity:  over $500 million in Route 1 transportation and infrastructure improvements, targeted redevelopment initiatives along the Potomac Communities corridor, and broader economic development efforts attracting billions in planned capital investment position Eastern Prince William as a place where intentional workforce, financial stability, and community investments can help ensure long-term economic growth is broadly shared rather than widening existing disparities. 

The pattern holds across the state line, too. In Maryland as a whole, the number of households living below the ALICE line has trended upward since 2010, even as the state’s economy has grown, a reminder that economic growth does not automatically translate into greater financial stability for working families. It also doesn’t account for the recent changes in employment and workforce reductions for many federal workers. 

“Unfortunately, ZIP code matters more than genetic code,” said Dr. Cooper. “We’re still seeing that unfair systems decide who gets a fair shot based on location and who doesn’t. That’s why where we invest matters just as much as how much we invest.”

Data-Driven Impact

To reach the neighborhoods facing the greatest hardship, United Way NCA is developing a new place-based strategy called Community Impact Zones. The approach will combine ALICE data with other local indicators to guide where United Way NCA and its partners focus resources in the years ahead. The program is still in the research and development stage, with United Way NCA planning to share more details later this year.

“This data tells us where to look, and the Community Impact Zones will help us decide where to act,” said Dr. Cooper. “We invite public and private sector leaders to join us in building a region where every household has a real chance at achieving stability.”

About United Way of the National Capital Area

For nearly 100 years, United Way of the National Capital Area has worked to mobilize communities to action so all can thrive. Guided by our mission, we are committed to creating measurable change across our three impact areas: Healthy Community,  Youth Opportunity, and Financial Security for every person in Alexandria, Arlington, Fairfax/Falls Church, Loudoun County, Prince William County, Rappahannock County, Culpeper County and Fauquier County in Virginia; Calvert, Charles, St. Mary’s County, Montgomery County and Prince George’s County in Maryland; and the District of Columbia. In 2020, United Way NCA was among 384 organizations across the United States to receive a generous transformational investment from novelist and venture philanthropist, MacKenzie Scott. For more information about United Way of the National Capital Area, visit UnitedWayNCA.org.

# # #