What “Affordable Housing” Really Means (And How It’s Calculated)

Affordable housing has a specific meaning in housing policy and programs: it’s not just “cheaper rent.” It usually means a home that costs no more than a set percentage of a household’s income, according to official formulas, and that is often supported by government programs. HowToGetAssistance.org is an informational site only; you must use official government or provider channels to apply or make changes.

Most affordable housing programs in the U.S. follow a similar rule: your total housing costs should typically be no more than 30% of your gross (before-tax) income. “Housing costs” usually include rent or mortgage plus basic utilities.

Fast Answer: The 30% of Income Rule

In housing policy, “affordable housing” typically means housing that costs 30% or less of a household’s gross monthly income.

• If you earn $2,000/month before taxes, “affordable” housing for you is usually $600/month or less in total housing costs.
• If you earn $3,500/month, “affordable” is usually $1,050/month or less in housing costs.

Many federal and local programs use this 30% standard when they decide:

• who qualifies as cost-burdened (paying more than 30% of income on housing), and
• what “affordable rent” should be for subsidized apartments or income-restricted units.

This is a guideline, not a guarantee: some programs use slightly different percentages or caps, and local costs can make “affordable” units still feel high.

Key Terms You’ll See When You Read About Affordable Housing

Plain-language terms callout:

• Gross income – Your income before taxes and deductions.
• Housing cost – Usually rent or mortgage plus essential utilities (often heat, electricity, sometimes water/trash).
• Area Median Income (AMI) – The midpoint of incomes in your area; half of households earn more, half earn less.
• Cost-burdened – Commonly defined as paying more than 30% of gross income on housing.

Affordable housing programs often define eligibility as a percentage of AMI, such as “50% of AMI” or “80% of AMI.” For example, income-restricted apartments might be reserved for households earning no more than 60% of AMI.

Local housing agencies and developers use AMI to set maximum rents for affordable units, so that people in certain income bands don’t have to pay more than that 30% benchmark.

How Affordable Housing Is Usually Structured in Programs

Most government-backed affordable housing is not just “cheap rent”; it follows official rules and funding requirements.

Common types include:

• Public housing: Apartments owned and operated by a Public Housing Authority (PHA), typically with rent tied to about 30% of your adjusted income.
• Housing Choice Vouchers (Section 8): A voucher covers part of your rent to a private landlord; you generally pay around 30% of your income, and the voucher pays the rest up to a limit.
• Project-based Section 8 or other subsidized buildings: Certain units in a building are permanently affordable, with rents linked to income.
• Low-Income Housing Tax Credit (LIHTC) properties: Rents are set using AMI formulas (for example, “60% AMI units”), not directly to each tenant’s exact income. You must be under certain income limits to move in.
• Inclusionary zoning / income-restricted units: Local rules may require new developments to include a percentage of “affordable” units with capped rents and income limits.

These programs use the word “affordable” in a technical sense: the rent is calculated to be affordable for households in a specific income range, based on federal or local standards, not on each person’s personal budget.

Does “Affordable Housing” Apply to You?

If you’re trying to figure out whether you might qualify for an affordable housing program or unit, look for these common clues.

You may be in the target group if:

• You spend more than 30% of your gross income on rent and essential utilities.
• Your household income is below 80% of the Area Median Income where you live (some programs use 50% or 60%).
• You’ve seen phrases like “income-restricted,” “Section 8 accepted,” or “affordable units available” on rental listings.
• You’ve been told you’re on a waitlist with your local housing authority or a subsidized property.

Because rules and income limits vary widely by state, county, and city, the most reliable way to know is to check with your local Public Housing Authority or housing department. They typically publish income limits and rent ranges for their affordable programs each year.

Quick summary: what “affordable housing” usually means in practice

• Uses a 30% of gross income benchmark for “affordable”
• Often tied to Area Median Income (AMI) limits
• May be income-based rent (you pay a share of income) or income-limited rent (flat rent, but only available below a certain income)
• Run or overseen by Public Housing Authorities, housing departments, or nonprofit developers
• Usually involves applications, waitlists, and documentation of income

Your Next Steps: How to Check Local Affordable Housing Options

You cannot apply or check your status through HowToGetAssistance.org, but you can use the steps below to connect with the right official office.

1. Find Your Local Housing Authority or Housing Office

1. Search online for: “Public Housing Authority [your city or county]” or “[your city] housing and community development department.”
2. On the official site (usually ending in .gov or the housing authority’s recognized domain), look for sections like “Housing Programs,” “Affordable Housing,” “Section 8,” or “Income-Restricted Units.”
3. What to expect next: You’ll typically see eligibility information, income limits, open/closed waitlists, and instructions on how to apply or get on a list.

If you’re not sure which office is correct, you can also call 2-1-1 or use the official 211 website at the United Way/211 portal, which often lists local housing assistance contacts.

2. Gather Commonly Required Information

Before contacting an office or property, it helps to have:

• Total monthly household income (before taxes), by source
• Number of people in your household and their ages
• Your current rent and utility costs
• Your city/county and ZIP code

Housing offices and property managers commonly ask for this in the first conversation to decide which programs or units fit your situation.

3. Contact a Program or Property

You can usually call, email, or use an online form listed on the official site.

A simple phone script you can adapt:
“Hello, I’m calling to ask about affordable housing options. My household size is [X], and our monthly income before taxes is about [$Y]. Could you tell me which programs or buildings I might qualify for and how to get on any open waitlists?”

What to expect next: They may explain current wait times, request supporting documents (pay stubs, ID, etc.), or direct you to apply online or in person.

Avoid Mistakes and Scam Warnings Around “Affordable Housing”

Because housing involves money, identity checks, and long waitlists, scams and misunderstandings are common.

Real-world friction to watch for: People often get stuck when they assume “affordable” just means “low rent” in any ad and hand over deposits or documents before confirming the landlord or property is tied to an actual affordable housing program.

Keep these safety and accuracy checks in mind:

• Verify the office or property is legitimate. Check that websites are official (often .gov) or clearly linked from your housing authority or city site. If a private landlord claims “Section 8 approved” or “income-restricted,” you can ask your housing authority if they work with that property.
• Be wary of upfront “application fees” that seem high or unusual. Some affordable programs charge small, disclosed fees, but they do not require large cash payments to skip the waitlist or “guarantee approval.”
• Never pay to be on a government waitlist. Legitimate PHAs do not sell spots or faster placement.
• Protect your documents. Programs commonly require photo ID, Social Security numbers (if you have them), income proofs, and rental history, but only provide these through official channels you have verified, not random messages or social media posts.
• Expect long waits and no guarantees. Even if you meet all income and household rules, many areas have long waitlists or closed lists due to demand; eligibility does not guarantee you will receive housing.

If something feels off, you can cross-check by calling your local housing authority directly using a number listed on a .gov site, or by contacting 211 to confirm known local programs.

How “Affordable” Rents Are Commonly Set (Simple Table)

This table shows how “affordable” might be estimated using the 30% rule. These are generic examples; actual program formulas and local income levels vary.

Some subsidized units set a flat rent based on AMI (for example, “1-bedroom at 60% AMI is $900”), and you qualify if your income falls below a certain maximum. Others (like many vouchers or public housing) set the rent directly as a percentage of your personal income.

If You’re Still Not Sure What Applies in Your Area

Affordable housing rules and program names differ by state and locality, so the wording and options you see may not match generic descriptions. To get information specific to your situation:

1. Find your local Public Housing Authority or housing department through a trusted .gov site or referral from 211.
2. Ask directly which programs they administer (public housing, vouchers, project-based units, local affordable developments) and their current income limits.
3. Request a list of affordable properties or nonprofit housing providers in your area, plus instructions for joining any open waitlists.

Once you know that “affordable housing” generally means spending no more than about 30% of your gross income on housing and that it’s tied to official income and AMI formulas, you can read listings and program information more confidently and know which official office to contact next.