Affordable Housing Defined

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Affordable Housing Defined
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Affordable housing works out from a simple
equation. Affordable housing should not exceed
around thirty percent of a family's monthly
income to pay rent and utilities. For owning a
home, the costs for utilities, taxes, mortgage,
and insurance should not exceed 38 percent of the
gross monthly income. These percentages can
define affordable housing for any person at any
income level. An issue that potential renters
and homeowners face is the affordability of
housing in the area that they would like to live.
The affordability of a specific area is based on
the available housing in the area as well as the
incomes of the population in that area.
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There are affordable housing programs available
to the general public, although most of them are
targeted for low to very low income families and
individuals. To qualify as low income, the
individual or family must earn less than eighty
percent of the area's median income. To qualify
as very low income, the family or individual must
make fifty percent of less of the area's median
income. Many factors work into finding
affordable housing. The areas in which this
exists can change with a matter of a few
variables. Some of these issues that can change
an area are hard costs for land and construction,
a close proximity to recreation and
entertainment, and a natural environment.
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All of these qualities of an area will make the
town or city more inviting, but it will decrease
the instances of affordable housing in the area.
Other factors that do not have to do with
aesthetics are mortgage interest rates and
development fees. Affordable housing is an
important concept because everyone deserves a
chance to have affordable housing. It is easier
to be able to live within your means and still be
able to rent or own a home that suits the family
or individual's needs.
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