If you’re having trouble finding a rental property you feel you can afford, you may be on the lookout for low-income rental options. But how do you know whether you qualify for low-income housing?

This question doesn’t have a simple answer because “low income” is based on a wide range of factors, including the cost of living in your local area, rent market values and median income ranges. Also, there may be state and local housing programs in your area in addition to federal (HUD) programs, and each of these may have different criteria in determining low income brackets.

What Is Considered Affordable?

By government guidelines, “affordable housing” is any situation in which your rent and utilities does not exceed 30 percent of your family’s monthly income. If you’re paying more than this amount, you are considered cost burdened and may be eligible for certain programs designed to reduce this burden, depending on the cost of housing in your area and your income limits.

What Is “Low Income?”

The Department of Housing and Urban Development (HUD) has established several tiers of need, based on the Median Family Income (MFI) and the Fair Market Rents (FMR) of the local area. Here’s a general breakdown of tiers:

• Households making 80 percent of the local Median Family Income are considered “low income.”
• Households making 50 percent of the MFI are “very low income.”
• Households making 30 percent or less are considered “extremely low income.”

Each tier makes you eligible for certain programs. In most cases, families must be at least in the “very low income” category to qualify for Section 8 housing, for example. The HUD Exchange offers a searchable database telling the actual income limits for households in each state, and even each county, so you can get an idea of where you land.

Many states also have additional affordable housing programs for which you may qualify, even if you don’t meet the federal guidelines. For example, in New York City, where housing is extremely expensive, there are local programs available for families making 100 percent or even 130 percent of the MFI.

Learn more about qualifying for low-income housing

The best way to find out whether you qualify for low-income housing in your area is to visit a local field office or organization in your area. Check out the HUD website for more information, or click here to locate state and local agencies. To find out whether you qualify for one of our own affordable rental properties, contact Olympia Management at 256-894-2382.