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

Affordable housing usually means housing that doesn’t cost more than 30% of your gross (before-tax) household income for rent and utilities, based on local income limits. HowToGetAssistance.org is an informational site only; you must use official government or nonprofit channels to apply or check your status.

Because housing programs are run at the federal, state, and local levels, the exact numbers and rules vary by area, but the basic ideas below are used across most programs.

Fast answer: what is considered “affordable housing”?

Most housing agencies and programs in the U.S. follow a few common rules:

“Affordable” = you pay about 30% of your gross income for rent and basic utilities.
Income limits are tied to the Area Median Income (AMI) for your county or metro area.
You may see categories like low‑income, very low‑income, or extremely low‑income, which are different percentages of AMI.
Programs include things like public housing, Housing Choice Vouchers (Section 8), and income‑restricted apartments funded by tax credits or other subsidies.

In simple terms: housing is considered “affordable” when your share of the cost is around 30% of your income, and your income falls under the limits for your area and household size.

Key terms you’ll see in affordable housing

Quick terms guide

Area Median Income (AMI): The middle income for your area; half of households earn more, half earn less. Housing programs base income limits on this.
Gross income: Your income before taxes and deductions from all sources (wages, benefits, etc.).
Rent burdened: Typically means you pay more than 30% of your income for housing costs.
Severely rent burdened: Typically means you pay more than 50% of your income for housing.

These terms appear on most affordable housing applications, waitlist descriptions, and apartment listings that participate in government programs.

How agencies decide if housing is “affordable” for you

Most housing agencies follow a similar logic, even though exact numbers differ by county or state.

1. They look up your local Area Median Income (AMI)

The U.S. Department of Housing and Urban Development (HUD) publishes AMI numbers by area each year. Local housing authorities and community development departments use these to set their income limits.

You’ll often see income limits written like this:

Low‑income: Up to 80% of AMI
Very low‑income: Up to 50% of AMI
Extremely low‑income: Up to 30% of AMI

These percentages are adjusted for household size, so a 1‑person income limit is lower than a 4‑person income limit.

2. They calculate your household’s gross annual income

Typically, agencies count:

Wages and salaries
Self‑employment income
Social Security, SSI, SSDI
Unemployment benefits
Some pensions, child support, or alimony, depending on local rules

They compare your total annual income to the chart for your area and household size to see if you qualify under 30%, 50%, or 80% of AMI.

3. They apply the 30% “affordability” rule

Most programs consider housing affordable if:

Your share of rent + basic utilities ≈ 30% of your gross income.

With voucher programs (like Housing Choice Vouchers), you typically pay around 30% of income and the voucher covers the rest, up to a limit. With income‑restricted apartments, the rent itself is set so that a household at a certain income level would pay roughly 30% of their income.

Does “affordable housing” apply to you?

You do not need to be unemployed or on public benefits to qualify. Affordable housing often helps:

Working families whose wages are too low for local market rents.
Seniors or people with disabilities on fixed incomes.
Households paying more than 30–50% of income toward rent now.

Typical clues that you may fit income‑based programs:

Your household income is below what’s considered “middle income” locally.
You struggle to pass rental screening due to high rent for your budget, even with decent credit.
You’ve seen rent‑controlled or income‑restricted listings that mention “must meet income limits” or “50% AMI units.”

Because income limits are set locally, they can differ widely even within the same state. To check your own numbers, look up income limits for your county or metro area through your local housing authority or HUD.

What you’ll need ready when you check if you qualify

Having basic information prepared can make it easier to see whether specific affordable housing programs fit your situation.

Commonly needed information:

Total household income (gross, yearly and monthly)
Number of people in your household and their ages
Sources of income (paychecks, Social Security, unemployment, etc.)
Current rent and utility costs (electric, gas, water if you pay them)
ZIP code or city/county where you live or want to live

Real‑world friction to watch for: People often get stuck when they only know their hourly wage or take‑home pay; most housing programs will ask for gross monthly or annual income, so it helps to estimate that in advance using your pay stubs.

Your next steps: how to check what “affordable” means where you live

Because rules and limits vary by state and even by county, it’s usually best to start with the official housing office for your city or county and work outward.

Step 1: Find your local housing authority or housing department

Search online for: “[your city] housing authority” or “[your county] affordable housing office.”
Confirm the website is official — it should usually end with .gov or clearly state it is a public housing authority (PHA) or city/county housing department.
On their site, look for sections titled “Income Limits,” “Affordable Housing,” “Section 8,” or “Housing Programs.”

If you cannot find the right office, you can also call 211 or visit the official HUD “Local Public Housing Agency” search page by searching online for “HUD PHA contact list” on the HUD.gov site.

Step 2: Compare your income to local income limits

Locate the income limit chart (often a PDF or table) for your area and the current year.
Find your household size on the chart.
Check whether your total gross income is under 30%, 50%, or 80% of AMI for that size.

What to expect next: Many sites will indicate which programs are aimed at each income band (for example, “public housing - very low‑income (50% AMI)” or “tax credit units - up to 60% AMI”). This helps you see which type of affordable housing might apply to you.

Step 3: Identify which types of affordable housing you can pursue

Common program types:

Public housing: Apartments or homes owned/managed by the housing authority, usually targeting very low‑ and extremely low‑income households.
Housing Choice Vouchers (Section 8): A voucher that helps pay rent in privately owned units; you pay part, the voucher pays part (waitlists are often long or closed).
Project‑based Section 8 or other subsidized properties: Specific apartment buildings where rents are tied to your income.
LIHTC (tax credit) or income‑restricted apartments: Privately owned properties that agree to rent to households under certain income limits, often at below‑market rates.

Do this next: Once you know which category your income falls into, check which programs are open in your area and follow the instructions on the official site for getting on interest lists or waitlists.

A simple phone script if you call:
“Hi, I’m calling to find out what the current income limits are for affordable housing in [city/county] and which programs are accepting applications or waitlist requests right now.”

Avoid mistakes and housing scams

Because affordable housing involves money and personal information, scams are common around applications and waitlists.

Common snags (and quick fixes)

Being asked to pay to apply or join a waitlist: Legitimate public housing authorities typically do not charge application or waitlist fees. If a site asks for an upfront payment to “unlock” applications, exit and confirm with your local housing authority.
Confusing a private listing site with an official portal: Many commercial sites list “affordable” units but are not official. Always cross‑check the property or program through your local housing authority or city housing department.
Sharing Social Security numbers on unverified sites: Only enter sensitive information on secure, official .gov or clearly identified public agency sites, or in person at a known agency office.

To protect yourself, avoid anyone who promises guaranteed approval, guaranteed fast placement, or “skip the waitlist” access in exchange for money. Genuine programs cannot guarantee a unit or timeline.

For reliable starting points, HUD’s main site at HUD.gov and your local public housing agency or city/county housing department are typically the safest official sources for program rules and income limits.

Once you know how your income compares to local AMI and which programs are open, you can focus your efforts on the specific affordable housing options you actually qualify for, instead of guessing based on rent amounts alone.