Lesson 6: Per household or per person?
On this page (4 sections)
DRAFT. This lesson is not final. It does not say which number is right.
The idea: be careful with averages. Sowell's Economic Facts and Fallacies takes on common mistakes in how people read economic facts, including about income differences Unverified1. One reason numbers mislead is that "household" and "person" are not the same size. A home can have one earner or five people. So two true numbers can tell different stories.
Key takeaways
The numbers
U.S. Census Bureau, American Community Survey, 5-year estimates for 2020 to 2024 (in 2024 dollars):
| Measure | Williams | California |
|---|---|---|
| Median household income | $90,761 (±$22,136) Verified2 | $99,122 (±$310) |
| Income per person (per capita) | $28,552 (±$5,071) Verified3 | $49,513 (±$168) |
| People per household | 3.46 (±0.38) Verified4 |
Median household income. The "±" is the margin of error. The Williams range, $68,625 to $112,897, includes California's $99,122 Calculated2. So this measure does not clearly show Williams above or below the state.
Income per person. Even the high end of the Williams range, $33,623, is well below California's $49,513 Calculated3. Households here are large, so income that looks near the state's per household is shared by more people.
Same data, two stories. Someone who wants to say "Williams is doing fine" can point to the household number. Someone who wants to say "Williams is low-income" can point to the per-person number. Both numbers are real. Which one fits depends on the question you are asking. Asking "how big is the margin of error?" is a good habit with any single-town number.
A third number. The State Water Board's 2026 preliminary affordability data lists the City of Williams water system as a "disadvantaged community," using a figure it calls "MHI with Margin of Error Considered" of $73,471 Verified5. That file defines a disadvantaged community as one where median household income is under 80% of the statewide level Verified5. This is the water system's service area, not the city's Census boundary, and the state uses its own method. So the figures differ.
Try it with your water bill
From Lesson 4: for a typical home with a small meter, the city's fixed water and sewer charges are $117.37 a month in Dec 2024 and $184.68 in Feb 2030 Verified6. The rates are charged per account, not per person. Divide $184.68 by the average of 3.46 people per household and you get about $53 per person a month (C) Calculated64. It is the same bill, but $184.68 and $53 sound very different. The city's schedule does not say how a household splits its bill, and the per-person number is only an average. Now try your own bill: how many people share it, and which number would you quote?
Try it
- Is the number per person, per household, or per taxpayer?
- What is the margin of error?
- Which number would the other side pick, and why?
← Lesson 5 · Next: the closing checklist →
Sources cited on this page
- Economic Facts and Fallacies (2nd ed., 2011; first edition 2008), Thomas Sowell Publisher's catalog page. We rely on the publisher's description (it lists fallacies about urban problems, income differences and other topics). We have not checked page text and quote nothing from the book. ↗
- Median household income, ACS 2020-2024 5-year estimates (table B19013), Williams city and California Williams city, CA (place 0685586): $90,761, margin of error ±$22,136. California: $99,122 (±$310). In 2024 inflation-adjusted dollars. Read from the Census data endpoint: https://data.census.gov/api/access/data/table?id=ACSDT5Y2024.B19013&g=1600000US0685586 ↗
- Per capita income, ACS 2020-2024 5-year estimates (table B19301), Williams city and California Williams city, CA: $28,552 (±$5,071). California: $49,513 (±$168). In 2024 inflation-adjusted dollars. Read from the Census data endpoint: https://data.census.gov/api/access/data/table?id=ACSDT5Y2024.B19301&g=1600000US0685586 ↗
- Average household size, ACS 2020-2024 5-year estimates (table B25010), Williams city Williams city, CA: 3.46 people per household (±0.38). Read from the Census data endpoint: https://data.census.gov/api/access/data/table?id=ACSDT5Y2024.B25010&g=1600000US0685586 ↗
- 2026 Preliminary Affordability Assessment Results (Attachment D1 to the 2026 Needs Assessment) Spreadsheet, read directly. Row for City of Williams (CA0610004): Disadvantaged Community Status "DAC"; "MHI with Margin of Error Considered" $73,471. The Definitions tab defines a disadvantaged community as a service area with median household income under 80% of the statewide level. ↗
- Water and sewer rates, scheduled increases (Exhibits A and B, "New rates 2026") Monthly fixed and volume rates in effect since December 1, 2024, and the increases scheduled every February 1 from 2026 to 2030. Text layer. ↗
Page last updated: · Site last built: