Affordable Housing is generally defined by the relationship between household income and housing costs. The (federal) Department of Housing and Community Development (HUD) identifies units as “affordable” if gross rent (including utility costs borne by the tenant) is no more than 30% of a household’s net adjusted income (with a small deduction for each dependent, childcare, extraordinary medical expenses, etc.) or if the carrying costs of owning a home does not exceed 30% of income. If households are paying more than these thresholds, they are described as experiencing housing affordability problems or “cost burdens;” if they are paying more than half of their income for housing, they are experiencing “severe cost burdens.”
Please see the Needham Housing Plan for a discussion of cost burdens related to Needham households.
Affordable housing can also be defined according to Household Area Median Income (AMI) as established annually by the federal Department of Housing and Urban Development (HUD). For the most current AMI for Needham, please click on HUD Area Median Income Limits.
