Institute for Planning

What Does "Affordable" Mean?

In planning, "Capital-A Affordable" refers to deed-restricted, subsidized housing, not simply cheap market-rate units.

Area Median Income (AMI)

HUD calculates the median income for every region. Affordable units are priced so households making a percentage of that AMI don't spend more than 30% of their income on rent.

  • Acutely Low Income: 0-15% AMI
  • Extremely Low Income: 15-30% AMI
  • Very Low Income: 30-50% AMI
  • Low Income: 50-80% AMI