Despite the skyrocketing rental rates across the country, there are a number of excellent government-backed programs in place to provide affordable housing for individuals and families with low incomes. Determining whether you are eligible to receive these benefits, however, can be confusing. A lot of factors come into play, including:

  • How much money you make;
  • How many people are in your household
  • The area median income (AMI) in your area, and how your household income compares to it;
  • The availability of housing in your area; and
  • The availability of subsidies compared to how many people need them.

Because every city and region in the country is different economically and has different circumstances, the local housing authority has to set criteria and make decisions regarding who is eligible for affordable housing in their area. However, the following income eligibility guidelines should help you get a better idea as to whether you qualify for affordable housing — wherever you happen to live.

Understanding “Affordable” Housing

Let’s start with a basic understanding of what classifies as affordable housing. The benchmark the government uses to define affordable is that your monthly rent should not exceed 30 percent of your monthly household income. Obviously, for many people, the average rent takes up much more than 30 percent of their income, making it difficult or impossible to meet rent. Thus, for low-income households who qualify, the goal is to match the rent to the income so monthly housing costs stay around 30 percent.

There are several ways the government works to meet this benchmark for low-income families, including the following:

  • Section 8 public housing: Housing that is run by the government and rented to low-income tenants at rates they can afford.
  • Section 8 vouchers: Government subsidies that follow the tenant, allowing you more living options. The subsidy is paid to the landlord to offset the cost of rent.
  • Government-subsidized housing: Subsidies and/or credits paid to developers and landlords who designate some or all of their units as affordable or low-income units. (e.g., the Low Income Housing Tax Credit Program).

What Are the Income Eligibility Requirements?

In every part of the country, the benchmark for determining what classifies as “low income” is based on the area median income (AMI) for that area — the middle amount of what people earn in that city, metropolitan area or region. Generally speaking, individuals and families who make 80 percent or less than the AMI are considered “low income;” those who make 50 percent or less are “very low income;” and those making 30 percent or less are “extremely low income.” The actual numbers behind these percentages can vary widely depending on where you live. (In New York, for example, a family of four can make over $68,000 a year and still be considered low income.) The Department of Housing and Urban Development (HUD) has a searchable portal where you can check specific income limits and median incomes for your area.

Available Programs and Eligibility

Once you know where you stand on the income spectrum for your area, you can check with your local housing authority to see which programs are available in your area and for which you might qualify. Again, availability differs by region based on what subsidies and properties are available versus how many people need assistance. (Very low and extremely low-income households often get top priority.) In many areas, you may qualify for affordable housing with an income of 50-60 percent of AMI. In some cities where the cost of living is higher, you may make as much as 80 percent of AMI and still be eligible. The best way to know for sure is to check with your local housing authority. Click here for a searchable map to find the housing authority for your area.

Olympia Property Management offers clean, affordable housing for eligible individuals and families in cities and towns across the south and southeast. For more information, call us today at 256-894-2382.