Glossary

Affordable housing – Housing that a household can pay for, while still having money left over for other necessities like food, transportation, and health care. That means that what’s considered “affordable” depends on a household’s income. The federal government typically defines housing as affordable when it consumes no more than 30 percent of a household’s income.

Area Median Income (AMI) – A metric calculated by the U.S. Department of Housing and Urban Development (HUD) to determine the income eligibility requirements of federal housing programs. The area median income is the midpoint of a region’s income distribution, meaning that half of households in a region earn more than the median and half earn less than the median. A household's income is calculated by its gross income, which is the total income received before taxes and other payroll deductions.

Income-qualified or income-limited affordable housing – The income limit for an affordable housing program is the maximum amount of income a household can earn to qualify to receive assistance. The specific figure is based on the city or county's Area Median Income (AMI), and is adjusted depending on how many persons live in the household (including children).

Market rate units – Housing units that have rental costs based on current market prices. There are no income limits or special requirements, however, residents do have to prove they have the income to pay rent.

Mixed-income housing – Housing development where apartments within the same building have different income qualifications.