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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.
Orange County | North Carolina (statewide) | |
Fair Market Rent (FMR) for a 2-bedroom apartment | $1,315 | $997 |
Income Needed to afford a 2-bedroom apartment at FMR | $52,600 ($25.29 per hour) | $39,897 ($19.18 per 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
Funding Source | Administered By | |
Federal Sources | Low Income Housing Tax Credit (LIHTC) | N.C. Housing Finance Agency |
HOME Investment Partnerships Program (HOME) | Orange County (HOME Consortium) | |
Community Development Block Grant (CDBG) | Town of Chapel Hill | |
Section 8 Housing Choice Voucher (HCV) Program | Orange County | |
Continuum of Care (CoC) | Orange County (Partnership to End Homelessness) | |
State Sources | N.C. Housing Trust Fund | N.C. Housing Finance Agency |
Local Sources | Emergency Housing Assistance (EHA) Fund | Orange County |
Outside Agency/Human Services Funding | Orange County, Town of Carrboro, Town of Chapel Hill | |
Orange County Affordable Housing Bond | Orange County | |
Carrboro Affordable Housing Fund | Town of Carrboro | |
Chapel Hill Affordable Housing Development Reserve | Town of Chapel Hill | |
Chapel Hill Affordable Housing Fund | Town of Chapel Hill | |
Chapel Hill Affordable Housing Bond | Town of Chapel Hill |