Affordable Housing 101

What is "Affordable Housing"?

• "Affordable housing" is housing that is affordable to households with low incomes, meaning that these households pay no more than 30% of their income for housing costs like rent, mortgage, and utilities.
• "Low-income" is based on the Area Median Income ("AMI") of the city or county. Typically, households are considered low-income if they earn no more than 80% of AMI. 
  • Households earning under 50% of AMI are considered very low-income
  • Households earning under 30% of AMI are considered extremely low-income 

  • FY 2023 Income Limit Area	Median Family Income	FY 2023 Income Limit Category	Persons in Family   1               2              3                4                5                6               7               8
    Durham- Chapel Hill NC HUD Metro FMR  Area	$116,200	Extremely Low (30%) Income Limits ($)   Very Low (50%) Income Limits ($)   Low (80%) Income Limits ($)	21,250    24,300    27,350     30,350      35,250       40,280     45,420     50,560       35,400     40,450    45,500     50,550      54,600      58,360      62,700     66,750     56,650    64,750      72,850     80,900      87,400      93,850      100,350    106,800

Affordable Housing Statistics

Fair Market Rents (FMRs), regularly published by HUD, represent the cost to rent a moderately-priced dwelling unit in the local housing market. To rent a 2-bedroom apartment at FMR in Orange County, the occupant would need to make $25.29/hour. North Carolina's miimum wage is $7.25/hour.

Sources: National Low Income Housing Coalition, 2023  & North Carolina Housing Coalition, 2023

Impacts of Affordable Housing

The briefs below from the N.C. Housing Finance Agency use the latest research to show how housing affordability benefits individuals and communities beyond just providing shelter:

• Affordable Housing Benefits Education
• Affordable Housing Benefits Health
• Affordable Housing Benefits The Economy
• Affordable Housing Benefits Communities

Funding for Affordable Housing