With the cost of housing continuing to climb nationwide, the need for affordable living situations has never been greater. Affordable housing options are available in every state in the union, but figuring out how to qualify for these properties can be genuinely confusing. Who actually qualifies for affordable housing, and what criteria need to be met? Let’s unpack these questions to demystify the process a bit.

Understanding Area Median Income (AMI)

To understand how people qualify for affordable housing, you must first become familiar with the term “Area Median Income” (or AMI). The AMI is essentially the midpoint number between the highest and lowest income earners in a given area. This number will be different in every city or region, and the Department of Housing and Urban Development determines the AMI annually for every region in the country.

Categories of Low-Income Housing

The reason the AMI is important is that local housing authorities basically use it as a measuring stick to determine your eligibility for affordable housing in that area, comparing your income level as a percentage of the AMI. Most areas categorize low-income households in three categories:

  • Households with an income of 80 percent of AMI or lower are considered low-income;
  • Households making 50 percent of AMI or lower are classified very low income; and
  • Households making 30 percent of AMI or below are considered extremely low income.

How Low-Income Housing Eligibility Is Assessed

Determining who qualifies for affordable housing is typically decided by a local housing authority or HUD office, based on such factors as how many properties are available, the volume of applicants and sometimes even the cost of living. Generally speaking, extremely low income families or individuals (30 percent AMI or below) are given top priority on waiting lists for HUD’s Section 8 or income-based housing options, but many areas also make income-based housing available to families making 50 percent or less of AMI. Some income restricted-housing (including many properties managed by Olympia Management, Inc.) have income limits to ensure they are available to households in the low-income bracket (80 percent of AMI or below). And in certain cities where rents are particularly high, even families making more than 80 percent of AMI may qualify for certain types of affordable housing. (In New York City, for instance, it is possible for you and your family members to make a combined household income of more than $100,000 per year and still qualify for some affordable housing units.)

Affordable Housing Waitlists and Availability

Meeting the eligibility requirements and qualifying for an affordable housing program doesn’t automatically mean you’ll get housing assistance. Some housing authorities and HUD offices have a high demand and long waitlists for a limited number of properties, and priority is usually given to low-income individuals and families. If you find yourself on a waiting list, don’t despair. You may still meet the qualifications for income-restricted rental housing without having to go through the HUD’s Section 8 or public housing channels.

Olympia Management, Inc. manages a number of affordable apartment communities across the southern U.S. We’d be glad to explore some excellent affordable housing opportunities with you. Call us at 256-894-2382 to learn more.