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 2022 Income Limit Area	Median Family Income	FY 2022 Income Limit Category	Persons in Family   1             2              3               4                 5          6          7               8
    Durham- Chapel Hill NC HUD Metro FMR  Area	$95,500	Extremely Low (30%) Income Limits ($)   Very Low (50%) Income Limits ($)   Low (80%) Income Limits ($)	20,100   22,950,  25,800    28,650    32,470   37,190  41,910   46,630       33,450    38,200  43,000   47,750   51,600    55,400   59,250   63,050     53,500   61,150  68,800    76,400   82,550    88,650   94,750 100,850

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