Friday Facts and Stats: Affordable Housing Definitions

While some of you may be familiar with the affordable housing crisis, it may be a completely new concept for others.  Not to worry, that is the purpose of Friday Facts and Stats.  This week I figured it would be helpful to start with some definitions so we can all be on the same page.

Common affordable housing terms:

• Area median income (AMI): determines income eligibility for affordable housing programs; a number set according to family size and geography
• Affordability: no more than 30% gross household income is spent on gross housing costs
• Cost burdened: those paying > 30% of income on housing
• Severely cost burdened: those paying > 50% of income on housing
• Housing wage: the estimated full time hourly wage a household must earn to afford a decent rental unit at HUD fair market rent; rent should be no more than 30% of a person's income
• Full time work: 2085 hours a year or 40 hours a week for 52 weeks
• Fair market rent: 40% of gross rents for a typical, non-substandard rental determined annually by HUD; price reflects cost of shelter and utilities; FMR determines payment standards for housing choice voucher program and Section 8 contracts
• Renter wage: estimated hourly wage among renters by region

In 2013 the extremely low income is defined as having an income no greater than $19,8100; this was down from $20,210 in 2012.  At this rate, the fair market rent for a two bedroom apartment is $977/month and a one bedroom is $783/month.  

This all might seem a little vague, so come back next week and I will break down all the numbers for you!  Until then consider donating to my ride ... every little bit helps!