AMI, or Area Median Income, is one of the most important concepts in affordable housing. It’s used to determine who qualifies for housing programs and what rent levels are considered affordable.
What AMI Means #
AMI is the midpoint income in a specific geographic area. Half of households earn more than the AMI, and half earn less. HUD updates this number annually.
Why AMI Matters #
- Used to determine eligibility for affordable housing programs
- Helps calculate rent limits and income thresholds
- Common affordability levels: 30%, 50%, 60%, or 80% of AMI
? Pro Tip: Rents are often capped at 30% of income for households earning under a specific AMI threshold.