Affordable Housing 101

What is “affordable housing”

The U.S. Department of Housing and Urban Development (HUD) considers an individual unit affordable if the occupant spends no more than 30 percent of the household’s gross income on housing, including utilities. People who spend more than 30% of their income on housing costs are considered to be cost-burdened. People who spend more than 50% of their income on housing costs are considered to be severely cost-burdened.

  • Housing costs: Rental costs are defined as rent plus utilities. Ownership cost is defined as monthly principal, interest, taxes and insurance.

Affordable housing is an umbrella term that generally refers to a continuum of housing options. In most cases, affordable housing refers to housing units that are subsidized and restricted to households earning less than 120 percent Area Median Income (AMI).

  • Area median income is the median income of all households in a given county or metropolitan region. If you lined up all the incomes of residents in a row, this number is the midpoint. Housing programs and the state’s workforce housing law use AMI.

Places to Call Home:

Exploring the Housing Continuum

What kinds of affordable housing are there?

A variety of housing types exist that work for people with different life situations and incomes: