New report shows location remains a key factor in solo business profitability-even in a remote-first economy.

New York, New York--(Newsfile Corp. - August 15, 2025) - A new report from DesignRush reveals the seven least profitable U.S. cities for solopreneurs in 2025, exposing where independent founders are most likely to operate at a loss despite the rise of solo work.

America's Least Profitable Cities for Solo Businesses Ranked

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In some regions, solo founders are losing more than $7,000 annually after expenses.

Using U.S. Census Bureau revenue data and Forbes' 2025 Cost of Living Index, the DesignRush Solopreneur Profitability Report analyzed 385 metro areas to pinpoint where solo businesses are struggling to stay financially afloat.

The 7 U.S. Cities With the Highest Expense-to-Revenue Ratios for Solo Businesses in 2025

Seven Least Profitable U.S. Cities for Solo Businesses in 2025

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1. Elmira, NY
Elmira ranks highest in the report, with an estimated -$7,796 average annual gap between solo business earnings and cost of living. The city has 4,339 nonemployer businesses.

"We often hear that remote work has leveled the playing field for solo businesses. But this data shows why regional context still matters," said Gianluca Ferruggia, General Manager at DesignRush.

2. Hinesville, GA
Solo founders here face an average income shortfall of -$6,594 per year. The city hosts 5,734 solo businesses. Living costs are estimated at 121% of average founder income.

"This invaluable asset will serve as a wellspring of innovation and a cornerstone of growth for our community… It is not merely a building; it is a symbol of the city's commitment to fostering local talent." - Allen Brown, Mayor of Hinesville

3. El Centro, CA
Solo workers in El Centro bring in $46,950/year, which sounds reasonable, until you learn that 113% of it is spent on living costs ($53,171). This means $6,221 in annual losses.

With 10,887 solo founders, this is more than a niche issue. That's $67 million in collective losses every year across El Centro's self-employed workforce.

Local reports say 1 in 3 founders is considering relocation citing high taxes, inflation, and lack of infrastructure.

4. Albany, GA
The average solo business in Albany loses -6,033 per year, spending 118% of their income just to live.

There are 14,323 solo founders in Albany. That's $86.4 million in aggregate solo revenue, but over $86 million in living costs, leaving almost no room for net gain at the city level.

5. Vallejo, CA
Despite sitting near one of the world's most powerful innovation centers, solo founders in Vallejo are losing $5,805 annually. They earn a decent $47,366, but spend $53,171 just to live, or 112% of their income.

"Despite proximity to the tech corridor, Vallejo's solo workforce is facing higher unemployment and declining contract opportunities" - Local Observer Daily

6. Amherst-Northampton, MA
This metro area shows a -$5,020 gap between average solo income and living expenses. It has 14,070 solo-operated businesses.

Many solo workers in the region depend on out-of-market clients to manage local cost pressures, according to local interviews.

7. Watertown-Fort Drum, NY
Watertown ranked the seventh worst U.S. city for solo founders in 2025, as they lose $4,233 every year.

There are just 6,098 solo businesses in the region, and nearly all remain dependent on Fort Drum.

"Approximately 4,600 soldiers and military spouses transition out of Fort Drum each year," according to North Country Public Radio.

Methodology

The report uses U.S. Census Bureau data on nonemployer business revenue and Forbes' 2025 city-specific cost of living index to calculate the ratio of living costs to average solo business income. The analysis includes 385 metro areas across the U.S.

About DesignRush

DesignRush.com is a B2B marketplace that connects businesses with agencies in branding, digital marketing, development, and consulting. Through original reports and strategic rankings, DesignRush helps businesses scale smarter.

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