A development is considered affordable when the rent or home price is accessible to households earning a percentage of the Area Median Income (AMI). But there’s more to it than just rent caps.
Core Criteria #
- Monthly housing costs ≤ 30% of household income
- Targeted to households at or below 60% of AMI (varies by program)
- Often includes long-term affordability commitments (15+ years)
Funding & Policy Alignment #
- May include LIHTC, HOME, state/local incentives
- Subject to fair housing and local zoning requirements
? Pro Tip: “Affordable” can mean different things in different markets. Income targeting and policy rules matter.