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What Is the H1B Prevailing Wage?

The H1B prevailing wage is the minimum salary an employer must pay an H1B visa worker based on the job location and occupation. Set by the U.S. Department of Labor (DOL) using Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey data, prevailing wages vary significantly across Metropolitan Statistical Areas (MSAs). The same Software Developer role can have a prevailing wage difference of over $40,000 between high-cost metros like San Francisco and lower-cost areas like Des Moines. H1B Compass visualizes these differences across 380+ metro areas so applicants and employers can identify worksites where a given salary provides the greatest margin above the prevailing wage requirement.

How Do H1B Wage Levels Work?

The DOL defines four prevailing wage levels based on the percentile of wages for an occupation within each metro area. Each level corresponds to a different experience tier, and the wage level filed on the Labor Condition Application (LCA) determines the minimum salary the employer must pay.

LevelPercentileExperienceFY2027 Lottery Weight
Level 1 (L1)17th percentileEntry-level1x (base)
Level 2 (L2)34th percentileQualified2x
Level 3 (L3)50th percentile (median)Experienced3x
Level 4 (L4)67th percentileFully competent / supervisory4x

Starting with FY2027 (effective February 2026), USCIS uses a wage-weighted H1B lottery system. Petitions filed at higher wage levels receive proportionally higher selection probability — a Level 4 petition is 4 times more likely to be selected than a Level 1 petition. This makes worksite choice strategically important: filing at a lower-cost metro may allow a higher wage level filing for the same salary.

How to Choose the Best H1B Worksite

  1. Set your salary — Enter the annual compensation your employer will pay. The map highlights metro areas where this salary exceeds the prevailing wage (green) versus where it falls short (red).
  2. Select your job category — Choose the SOC code that matches your occupation. H1B Compass covers 12 tech categories including Software Developer, Data Scientist, Security Engineer, and DevOps/SRE.
  3. Compare wage levels — Check whether your salary qualifies at L2, L3, or L4 in each metro area. Higher levels mean better lottery odds under the FY2027 wage-weighted system.
  4. Use the drive zone filter — If your employer requires on-site presence, set an origin city and maximum commute radius to find qualifying metros within driving distance.
  5. Factor in cost of living — Enable the rent layer to see HUD Fair Market Rents and calculate your net surplus (wage headroom minus annual rent) for a more complete comparison.

For a detailed strategy guide, see How to Choose Your H1B Worksite.

Frequently Asked Questions

What data does H1B Compass use?

Prevailing wages come from the DOL Office of Foreign Labor Certification (OFLC) prevailing wage dataset for July 2025 through June 2026, which is derived from BLS OEWS survey data. Rent data comes from HUD FY2026 Fair Market Rents. Metro area boundaries are US Census Bureau CBSA shapefiles.

How often is the data updated?

The DOL publishes new prevailing wage data annually, typically effective July 1. H1B Compass updates its dataset each year to reflect the latest wage determinations. The current dataset covers the July 2025 to June 2026 prevailing wage period.

What is the wage surplus?

Wage surplus is the difference between your salary and the prevailing wage for your job category and wage level in a given metro area. A positive surplus means your salary exceeds the prevailing wage (qualifying for H1B). A negative surplus means the prevailing wage is higher than your salary, and the employer would need to increase compensation to file at that location.

What is the FY2027 wage-weighted lottery?

Starting with FY2027 H1B cap season, USCIS assigns lottery selection weights based on the wage level of the petition. Level 1 petitions receive a 1x base weight, Level 2 receives 2x, Level 3 receives 3x, and Level 4 receives 4x. This means a petition filed at Level 4 is four times more likely to be selected than one filed at Level 1. Choosing a worksite where your salary qualifies at a higher wage level directly improves your lottery odds.

Can I change my H1B worksite after filing?

Yes, but it requires filing an amended H1B petition with USCIS if the new worksite is in a different MSA with a different prevailing wage. The employer must also file a new Labor Condition Application (LCA) for the new location. This is why choosing the right worksite upfront is important.

Is this tool free?

Yes. H1B Compass is a free, open-source tool. The source code is available on GitHub. No account or payment is required.

Data Sources

  • Prevailing Wages: U.S. Department of Labor, Office of Foreign Labor Certification (OFLC) — Prevailing Wage Determinations, July 2025 through June 2026
  • Occupation Wages: Bureau of Labor Statistics (BLS), Occupational Employment and Wage Statistics (OEWS) survey
  • Fair Market Rents: U.S. Department of Housing and Urban Development (HUD), FY2026 Fair Market Rent data
  • Metro Area Boundaries: U.S. Census Bureau, Core Based Statistical Area (CBSA) shapefiles
  • Lottery Weights: USCIS FY2027 H1B wage-weighted registration rule (February 2026)

For full methodology details, see About & Methodology.