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News: September 14, 2007
MFI: How 'Affordable' Is Your Rent?
By Wells Dunbar
Austin generally calculates residential expenses in terms of median
family income, adjustable to family size; the median lies statistically
in the center, with half of Austin families (of varying unit size,
see right) earning more than that amount annually and the other
half making less. Eighty percent MFI – one common standard
for "affordable" – clocks in for a one-person "family"
at a healthy $39,850 yet is still considered "low income"
by the standards of U.S. Housing and Urban Development. The standard
has inevitably led to some steep rents, which are still technically
"affordable." For example, HUD defines "affordable"
rent as not consuming more than one-third of a person's income;
by that reading, rent for a single person earning 80% MFI could
top out at $996 a month and still technically be considered "affordable"
from a developer-incentives standpoint. If Austin is serious about
preserving its affordable rental stock, a fairer measure of affordability
than 80% MFI – or commitment to deeper affordability –
is likely needed.
| |
Household
Size |
| Income
|
1 |
2 |
3 |
4 |
| 30%
Median Income |
14,950 |
17,100 |
19,200 |
21,350 |
| 40%
Median Income |
19,900 |
22,750 |
25,600 |
28,450 |
| 50%
Median Income |
24,900 |
28,450 |
32,000 |
35,550 |
| 60%
Median Income |
29,850 |
34,150 |
38,400 |
42,650 |
| 65%
Median Income |
32,350 |
36,950 |
41,600 |
46,200 |
| 80%
Median Income |
39,850 |
45,500 |
51,200 |
56,900 |
"HUD
Income Limits by Household Size," effective March 20, 2007,
from the city of Austin's Neighborhood Housing and Community Development
Office
Copyright © 2008 Austin Chronicle Corporation.
All rights reserved.
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