State Distress Rankings, September 2026: Nevada Ranks 1st of 51 at 100
Nevada ranks 1st of 51 on American Default Research's State Distress Index, scoring 100, with 16 of 51 jurisdictions scoring 70 or more. The index ranks the 50 states and DC against each other on four domains built from Federal Reserve Bank of Philadelphia (New York Fed / Equifax), U.S. Bureau of Labor Statistics, U.S. Census Bureau, and Administrative Office of the U.S. Courts data; a state's score is the share of the 50 states and DC it is more distressed than. The inputs cover different periods: credit data Q1 2025; bankruptcy filings 2025; renter cost burden 2024; unemployment June–August 2026.
Which States Have the Most Financial Distress?
Nevada has the highest State Distress Index score at 100, followed by Louisiana (98), Florida (96), Texas (94), and Michigan (92). The domain on which each scores highest: Nevada, debt burden (housing basis); Louisiana, delinquency; Florida, debt burden (housing basis); Texas, delinquency; Michigan, labor. The four SDI domains are delinquency (credit card, auto loan and mortgage), default and legal, debt burden (housing basis), and labor. A similar score can come from a different mix of domains. The per-state domain breakdown is published with the interactive state map.
At the other end, North Dakota (0), South Dakota (2), and New Hampshire (4) have the lowest scores. The scores rank places against each other; they do not measure whether conditions in any state are getting better or worse, and they do not identify why a state ranks where it does. American Default Research publishes the American Distress Index nationally and the State Distress Index for geography, scoring all 51 jurisdictions across four domains of household financial distress.
At a Glance
The national American Distress Index currently reads 47.0 (Typical). The composite itself sits higher than 44% of all published quarters since 2005. The national index tracks distress over time, ranking each input against its own quarterly history. The State Distress Index compares states to each other at a single point in time, showing where readings are highest relative to other states. See the interactive state map for a visual overview, or compare individual state foreclosure timelines alongside their distress scores.
All 51 Jurisdictions Ranked
State Distress Index scores for every state and DC, ranked from highest distress to lowest. Colors track each state's distress score; rank #1 is the most distressed jurisdiction.
State Distress Index Scores — All 51 Jurisdictions
State Distress Index
Which Domains Make Up the Highest Distress Scores?
Two states can have similar scores through a different mix of domains. One state can score high on delinquency, another on the labor domain or housing-basis debt burden. The domain breakdown for the 10 highest-scoring states shows where each score comes from.
Domain Breakdown — Top 10 Most Distressed States
Domains: Delinquency, Default & Legal, Debt Burden (housing basis), Labor
Which States Are in Each Fifth?
The index ranks the 51 jurisdictions and splits the ranking into fifths, from the most distressed fifth to the least. The State Distress Index is cross-sectional. A mid-scoring state is not being labeled healthy or unhealthy; it is being placed in the middle of the current state distribution. Whether conditions are high or low against the nation's own past is a separate question, which the national American Distress Index (now 47.0) answers. Relative positioning and absolute distress are different questions.
Where Are the Most Distressed States?
The most distressed fifth holds 10 jurisdictions. By region: South 6, Northeast 1, Midwest 1, West 2. The table counts each region's jurisdictions in the most and least distressed fifths and names its highest-ranked jurisdiction. The index measures outcomes; it does not identify what produced them. Its methodology notes that bankruptcy filing volume partly reflects state legal regimes, and separating causes would take a study this cross-section cannot stand in for. See consumer debt by state for the underlying credit card delinquency rates.
| Region | States | In most distressed fifth | In least distressed fifth | Highest ranked |
|---|---|---|---|---|
| South | 14 | 6 | 0 | Louisiana (2nd, 98) |
| Northeast | 12 | 1 | 3 | Delaware (9th, 84) |
| Midwest | 12 | 1 | 4 | Michigan (5th, 92) |
| West | 13 | 2 | 3 | Nevada (1st, 100) |
Census Bureau regions, except Delaware, DC and Maryland, grouped here with the Northeast.
Which Domain Scores Highest in Each State?
States rank differently on different domains. Each state is listed under the domain on which it scores highest, in State Distress Index rank order: delinquency for 9, default and legal for 17, labor for 12, debt burden (housing basis) for 13. A state's highest domain shows where its score comes from; it does not identify why.
Every number in these four lists is a domain score — where a state sits against the rest of the country on that domain, not the underlying measure itself. A debt-burden score near the top of the scale means a state leads the country on renter cost burden. It is not the share of renters who are burdened.
Delinquency
Credit card, auto, mortgage delinquency
| State | Rank | Score |
|---|---|---|
| Louisiana | 2 | 95.8 |
| Texas | 4 | 88.6 |
| Mississippi | 6 | 97.7 |
| South Carolina | 8 | 86.0 |
| Maryland | 17 | 68.3 |
| Oklahoma | 21 | 79.4 |
| West Virginia | 23 | 74.8 |
| North Carolina | 28 | 72.2 |
| South Dakota | 50 | 23.9 |
Default & Legal
Collections and bankruptcy filings
Labor
State unemployment rate
| State | Rank | Score |
|---|---|---|
| Michigan | 5 | 88.2 |
| Delaware | 9 | 81.4 |
| New Mexico | 11 | 79.4 |
| Connecticut | 12 | 96.1 |
| Arizona | 13 | 84.3 |
| District of Columbia | 14 | 99.0 |
| Illinois | 19 | 84.3 |
| Oregon | 20 | 96.1 |
| Washington | 33 | 91.2 |
| Idaho | 37 | 40.2 |
| Minnesota | 39 | 66.7 |
| Alaska | 41 | 62.8 |
Debt Burden (housing basis)
Severe renter cost burden
| State | Rank | Score |
|---|---|---|
| Nevada | 1 | 97.1 |
| Florida | 3 | 99.0 |
| California | 10 | 95.1 |
| New York | 18 | 93.1 |
| New Jersey | 22 | 75.5 |
| Pennsylvania | 25 | 73.5 |
| Rhode Island | 30 | 77.5 |
| Colorado | 34 | 59.8 |
| Massachusetts | 35 | 71.6 |
| Hawaii | 38 | 89.2 |
| Maine | 43 | 30.4 |
| Vermont | 48 | 38.2 |
| New Hampshire | 49 | 32.4 |
Several Patterns Behind High Scores
Among the five highest-ranked states, the highest domain is: Nevada, debt burden (housing basis); Louisiana, delinquency; Florida, debt burden (housing basis); Texas, delinquency; Michigan, labor. A similar composite score can come from a different mix of domains, so a state's rank says less than its domain row does. Severe renter cost burden, the input behind the debt-burden domain, counts renters whose rent-to-income ratio the Census can calculate and who spend at least half their income on rent (2024 American Community Survey).
Per-state domain breakdowns are on the interactive state map.
Read more: The Two-Economy Problem →Full State Rankings
All 51 jurisdictions with composite score, rank, fifth, and four domain scores. Click a state name to see its full distress profile, indicator data, and foreclosure law summary.
| Rank | State | Score | Fifth | Delinq. | Default | Labor | Debt Burden |
|---|---|---|---|---|---|---|---|
| 1 | Nevada | 100 | Most distressed fifth | 86.6 | 88.2 | 88.2 | 97.1 |
| 2 | Louisiana | 98 | Most distressed fifth | 95.8 | 89.2 | 62.8 | 91.2 |
| 3 | Florida | 96 | Most distressed fifth | 77.5 | 66.7 | 75.5 | 99.0 |
| 4 | Texas | 94 | Most distressed fifth | 88.6 | 70.6 | 72.5 | 63.7 |
| 5 | Michigan | 92 | Most distressed fifth | 52.6 | 65.7 | 88.2 | 85.3 |
| 6 | Mississippi | 90 | Most distressed fifth | 97.7 | 89.2 | 37.3 | 65.7 |
| 7 | Georgia | 88 | Most distressed fifth | 91.2 | 93.1 | 23.5 | 81.4 |
| 8 | South Carolina | 86 | Most distressed fifth | 86.0 | 56.9 | 57.8 | 83.3 |
| 9 | Delaware | 84 | Most distressed fifth | 70.3 | 75.5 | 81.4 | 46.1 |
| 10 | California | 82 | Most distressed fifth | 44.8 | 38.2 | 93.1 | 95.1 |
| 11 | New Mexico | 80 | Second-most distressed fifth | 74.2 | 45.1 | 79.4 | 69.6 |
| 12 | Connecticut | 78 | Second-most distressed fifth | 48.7 | 35.3 | 96.1 | 87.3 |
| 13 | Arizona | 76 | Second-most distressed fifth | 59.8 | 59.8 | 84.3 | 61.8 |
| 14 | District of Columbia | 74 | Second-most distressed fifth | 93.8 | 13.7 | 99.0 | 57.8 |
| 15 | Alabama | 72 | Second-most distressed fifth | 88.6 | 96.1 | 26.5 | 50.0 |
| 16 | Kentucky | 70 | Second-most distressed fifth | 65.0 | 87.3 | 77.5 | 28.4 |
| 17 | Maryland | 68 | Second-most distressed fifth | 68.3 | 63.7 | 55.9 | 67.7 |
| 18 | New York | 66 | Second-most distressed fifth | 62.4 | 23.5 | 72.5 | 93.1 |
| 19 | Illinois | 64 | Second-most distressed fifth | 55.2 | 57.8 | 84.3 | 53.9 |
| 20 | Oregon | 62 | Second-most distressed fifth | 27.4 | 47.1 | 96.1 | 79.4 |
| 21 | Oklahoma | 60 | Middle fifth | 79.4 | 78.4 | 59.8 | 24.5 |
| 22 | New Jersey | 58 | Middle fifth | 48.7 | 40.2 | 69.6 | 75.5 |
| 23 | West Virginia | 56 | Middle fifth | 74.8 | 53.9 | 53.9 | 48.0 |
| 24 | Arkansas | 54 | Middle fifth | 80.1 | 85.3 | 52.0 | 10.8 |
| 25 | Pennsylvania | 52 | Middle fifth | 58.5 | 43.1 | 47.1 | 73.5 |
| 26 | Tennessee | 50 | Middle fifth | 67.0 | 87.3 | 29.4 | 34.3 |
| 27 | Ohio | 48 | Middle fifth | 57.8 | 71.6 | 29.4 | 52.0 |
| 28 | North Carolina | 46 | Middle fifth | 72.2 | 46.1 | 33.3 | 55.9 |
| 29 | Indiana | 44 | Middle fifth | 63.1 | 74.5 | 23.5 | 44.1 |
| 30 | Rhode Island | 42 | Middle fifth | 43.5 | 30.4 | 47.1 | 77.5 |
| 31 | Virginia | 40 | Middle fifth | 44.1 | 53.9 | 42.2 | 42.2 |
| 32 | Missouri | 38 | Second-least distressed fifth | 54.6 | 65.7 | 37.3 | 20.6 |
| 33 | Washington | 36 | Second-least distressed fifth | 16.7 | 29.4 | 91.2 | 40.2 |
| 34 | Colorado | 34 | Second-least distressed fifth | 33.0 | 34.3 | 50.0 | 59.8 |
| 35 | Massachusetts | 32 | Second-least distressed fifth | 21.2 | 7.8 | 66.7 | 71.6 |
| 36 | Kansas | 30 | Second-least distressed fifth | 42.2 | 54.9 | 44.1 | 12.8 |
| 37 | Idaho | 28 | Second-least distressed fifth | 19.3 | 39.2 | 40.2 | 36.3 |
| 38 | Hawaii | 26 | Second-least distressed fifth | 26.5 | 10.8 | 6.9 | 89.2 |
| 39 | Minnesota | 24 | Second-least distressed fifth | 8.2 | 31.4 | 66.7 | 26.5 |
| 40 | Iowa | 22 | Second-least distressed fifth | 31.7 | 42.2 | 16.7 | 22.6 |
| 41 | Alaska | 20 | Second-least distressed fifth | 21.2 | 23.5 | 62.8 | 4.9 |
| 42 | Utah | 18 | Least distressed fifth | 3.6 | 53.9 | 33.3 | 16.7 |
| 43 | Maine | 16 | Least distressed fifth | 22.6 | 26.5 | 14.7 | 30.4 |
| 44 | Wisconsin | 14 | Least distressed fifth | 8.2 | 44.1 | 20.6 | 18.6 |
| 45 | Wyoming | 12 | Least distressed fifth | 24.5 | 42.2 | 12.8 | 6.9 |
| 46 | Nebraska | 10 | Least distressed fifth | 19.3 | 41.2 | 10.8 | 14.7 |
| 47 | Montana | 8 | Least distressed fifth | 16.7 | 26.5 | 18.6 | 8.8 |
| 48 | Vermont | 6 | Least distressed fifth | 15.7 | 7.8 | 4.9 | 38.2 |
| 49 | New Hampshire | 4 | Least distressed fifth | 7.5 | 10.8 | 8.8 | 32.4 |
| 50 | South Dakota | 2 | Least distressed fifth | 23.9 | 11.8 | 1.0 | 1.0 |
| 51 | North Dakota | 0 | Least distressed fifth | 10.1 | 18.6 | 2.9 | 2.9 |
Frequently Asked Questions
Which state has the highest financial distress?
Nevada has the highest State Distress Index score at 100, which means it is more distressed than every other state. It ranks 1st of 51 jurisdictions, in the most distressed fifth. Louisiana (98) and Florida (96) rank 2nd and 3rd.
Which state has the lowest financial distress?
North Dakota has the lowest State Distress Index score at 0, ranking 51st of 51 jurisdictions, in the least distressed fifth.
How is the State Distress Index calculated?
The State Distress Index averages four equal-weighted domains: delinquency, default and legal, debt burden (housing basis), and labor. Each domain is built from state-level input percentile ranks, with higher values indicating more distress. A state's score is the share of the other states and D.C. with a lower average, rounded down, so it reads as the share of the 50 states and D.C. it is more distressed than. Inputs come from the Philadelphia Fed's Consumer Credit Explorer (built on New York Fed Consumer Credit Panel / Equifax data), BLS, the Census Bureau, and U.S. Courts.
How does the State Distress Index differ from the American Distress Index?
The national American Distress Index ranks each of its inputs against that input's own quarterly history — it tracks how the present compares with the nation's own past. The State Distress Index compares states to each other at a point in time. The national index currently reads 47.0 (Typical). The composite itself sits higher than 44% of all published quarters since 2005. State scores run from 0 (North Dakota) to 100 (Nevada).
Where are the most distressed states?
The most distressed fifth of the State Distress Index holds 10 jurisdictions: Nevada (West), Louisiana (South), Florida (South), Texas (South), Michigan (Midwest), Mississippi (South), Georgia (South), South Carolina (South), Delaware (Northeast), California (West). By region: South 6, Northeast 1, Midwest 1, West 2. Delaware, DC and Maryland are counted with the Northeast here.
Data Sources
Philadelphia Fed Consumer Credit Explorer
State-level credit card, auto loan, and mortgage delinquency and collections rates (Q1 2025), from the Federal Reserve Bank of Philadelphia's Consumer Credit Explorer, which is built on the New York Fed Consumer Credit Panel, a nationally representative 5% sample of Equifax credit reports.
BLS, Census Bureau, U.S. Courts
State unemployment rates (LAUS, June–August 2026), severe renter cost burden (American Community Survey 1-Year, table B25070, 2024), and bankruptcy filings per 100,000 (Administrative Office, 2025). Updated monthly or annually.
Consumer Financial Protection Bureau, State Statutes, KFF (not SDI inputs)
Mortgage complaint density per 100,000, foreclosure legal protections scoring, and Medicaid enrollment rates. These feed the separate state safety-net score shown on each state page, not the State Distress Index.