Rexburg, Idaho, stands as the state’s poorest city based on the highest poverty rate, with nearly 40% of residents living below the federal line amid a median income of just over $31,000.
This small college town near Yellowstone faces economic hurdles despite its scenic appeal and Brigham Young University-Idaho drawing students. Recent data through 2025 confirms its top ranking in hardship metrics nationwide for similar locales.
Poverty Metrics
Stacker analysis using U.S. Census American Community Survey (2016-2020, trends holding to 2026) pegs Rexburg’s poverty at 39.3%, far above Idaho’s 10.6% state average—the nation’s 15th lowest.
Over 11,000 individuals scrape by, including 29% of kids under 18, with 4,999 employed still in poverty. Median household income lags at $31,128, versus $60,000+ statewide, strained by seasonal tourism and student-heavy demographics.
Economic Drivers
Rexburg’s economy hinges on agriculture, retail, and education, but low-wage service jobs dominate post-graduation outflows. Madison County’s potato farming and dairy offer limited high-pay roles; youth bulge from BYU-Idaho (19,000+ students) spikes transient poor households. Housing costs rose 20% since 2020, yet wages stagnate, pushing families toward food banks and aid.
Comparison to Others
Rexburg outpaces runners-up like Jerome (26.1% poverty) and Burley (19.2%), both ag-dependent. Larger Pocatello (18.5%) and Caldwell benefit from military bases and urban jobs, diluting rates. Idaho’s booming Boise metro contrasts sharply, with poverty under 14%.
Community Challenges
High child poverty (29%) strains schools; free lunch programs serve nearly half. Homelessness ticks up with student evictions and farm layoffs. Yet resilience shines: Churches and nonprofits like United Way fill gaps, while remote work lures tech amid 2026 fiber expansions.
Potential Turnaround
Rexburg eyes growth via tourism (Yellowstone proximity) and ag-tech. State investments cut poverty slightly since 2022, but experts urge workforce training. Compared to rural peers, its youth median age (22) promises rebound if jobs follow education.
Daily Life Impacts
Residents prioritize basics; dollar stores thrive, but healthcare access lags. Community events foster bonds, countering isolation in harsh winters. Idaho’s low overall poverty offers hope, with Rexburg nonprofits reporting 10% aid uptick in 2025.
Rexburg embodies rural America’s grit, where poverty stats mask tight-knit support amid Gem State prosperity.
SOURCES:
- https://stacker.com/stories/idaho/cities-idaho-most-living-poverty
- https://idahoatwork.com/2025/02/10/idahos-poverty-rate-15th-lowest-in-the-country/
