Income Inequality by ZIP Code

## The ZIP Code Wealth Gap

In the United States, your ZIP code is one of the strongest predictors of economic opportunity. The median household income in the wealthiest ZIP codes exceeds $250,000, while some communities report medians below $15,000.

## Extremes

| Rank | ZIP Code | Location | Median Income |
|------|----------|----------|---------------|
| Highest | 94027 | Atherton, CA | $250,000+ |
| Highest | 33109 | Fisher Island, FL | $250,000+ |
| Highest | 07078 | Short Hills, NJ | $232,000 |
| Lowest | 15767 | Smicksburg, PA | $12,500 |
| Lowest | 25264 | Southside, WV | $14,200 |
| Lowest | 41822 | Jeremiah, KY | $15,100 |

*Source: ACS 5-Year Estimates, 2018-2022*

## Geographic Patterns

Income distribution follows clear geographic patterns:

- **Coastal metros** — Highest incomes cluster in suburbs of San Francisco, New York, Washington DC
- **Rural Appalachia** — Persistent poverty in parts of KY, WV, VA, TN
- **Deep South** — Lower incomes across the MS Delta, Black Belt regions
- **Native reservations** — Among the lowest median incomes nationally
- **College towns** — Often show misleadingly low medians due to student populations

## The Opportunity Atlas

Research by Raj Chetty at Harvard has shown that children's economic mobility varies dramatically by ZIP code. Growing up in a high-opportunity ZIP code increases lifetime earnings by tens of thousands of dollars.

Key findings:

- Upward mobility is highest in areas with low segregation, low inequality, and good schools
- Moving to a better ZIP before age 13 has the largest impact
- Effects persist even after controlling for family income

## Limitations

ZIP-level income data has important limitations:

- **Averages hide variation** — A ZIP can contain both mansions and public housing
- **Sample size** — Small ZIPs have wide margins of error
- **Timing** — ACS data lags current conditions by 2-3 years
- **Cost of living** — $100K in San Francisco ≠ $100K in rural Mississippi