What is Affordable Housing?
Affordable housing is a frequent topic of discussion, but did you know the term “affordable” has a specific definition? According to Housing and Urban Development (HUD), Affordable housing is:
“housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities.”
Sometimes this is shortened to “30 percent of Area Median Income (AMI).”
Additionally, affordable housing is typically associated with subsidies that are funded by the local, state, or federal governments or nonprofits. One such subsidy, funded by HUD, is the Housing Choice Vouchers program.