Affordable housing is commonly defined in terms of housing costs as a percentage of household income. Housing is considered unaffordable when a household’s monthly housing costs exceed a certain threshold — most commonly 30 percent of gross income — thereby reducing the budget available for other basic necessities and amenities.
A common measurement of housing affordability compares the number of households in certain income categories to the number of units on the market affordable at 30 percent of gross income. VISION 2040 uses the following household income categories and definitions to track regional housing affordability:
- Middle: 80%-120% of area median income
- Moderate: 50%-80% of area median income
- Low: Below 50% of area median income
- Very Low: Below 30% area median income
The Housing Toolkit organizes strategies around two targeted income categories: 80-120% AMI and below 80% AMI.