Re: Affordable Housing: What it costs to rent a 2 Br Apt
From: Dick Margulis (dickdmargulis.com)
Date: Wed, 13 Jun 2018 12:43:31 -0700 (PDT)
On 6/13/2018 3:11 PM, Sharon Villines via Cohousing-L wrote:

        
There isn’t a single state, city, or county in the U.S. where someone earning 
federal or state minimum wage for a 40-hour work week can afford a two-bedroom home at 
fair market rent.


"Affordable housing" is not based on what people at the lowest economic rungs can afford. The affordable housing program is aimed at middle class working families who find themselves priced out of local housing markets. It is based on what someone can afford who is earning 60% of the area median income or above. Below that level, low-income housing is the category to look at. Many people don't understand that key difference.

For example, in the statistical area where we are building Rocky Corner, a family of three earning $49,626 or less would qualify at 60% of area median income and would be able to afford a two-bedroom home subsidized at that level. Using the same annual hours as shown on that chart (52 weeks times 40 hours a week), which seems excessive to me (I'd have said 50 weeks), that comes to $23.86 an hour, vs. the $24.90 an hour shown on the chart. The median income for a family of three in our area is $82,710, which is an hourly wage of $39.76 using their method, well above the level they say is necessary to rent a two-bedroom apartment.

I should note that we have affordable one-, two-, and three-bedroom homes variously at 60%, 80%, and 100% of area median income.

Dick
www.rockycorner.org


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