Everything You Need to Know About Affordable Housing When searching for apartments, you may have heard the terms like affordable housing and low-income housing. Perhaps you may be wondering what these terms stand for and how they contribute in buying a home? Affordable housing is a term used to describe rental or owned housing that is affordable and provided to eligible households based on local income and local house prices. The U.S. government regards housing affordable that costs at or below 30% of one’s income. Your income eligibility depends on your Area Median Income (AMI). Determined by Housing and Urban Development, AMI is a measure of income that is used to find a housing program for which you qualify based on your household size and gross income.
Let’s explore the various types of affordable housing options available to meet the specific needs of households. Privately-Owned Subsidized Housing
Subsidized housing is used to describe housing that has rental assistance. The rent of a subsidized housing unit is linked to your income. This program is ideal for households with very low incomes. In this type of housing, the government pays monthly housing cost for all or a portion of occupants to provide them low-rent apartments. To be able to qualify for this, you must be within the income level based on the area location and your family size. Additionally, you have to meet other requirements set by the property owner. Public Housing It is a government-owned housing that is affordable as the government sets the rental rates. Here, a public housing agency of your local area rents you a housing based on your gross annual income. To check your background and suitability as a tenant, the housing agent may schedule a visit to your current home and may contact your landlord. This type of housing may include communities like single-family homes, apartments, or townhouses. Section 8 – Housing Choice Vouchers Section 8 program by HUD helps renters pay rent when it exceeds 30% of AMI. The rental vouchers give you a set amount which government pays to your landlord each month. You are only left to pay the difference, if any. The amount of voucher is based on your family structure, income, and local housing costs. There are two types of Section 8 – Tenant-based where voucher goes directly to the renter and Project-based where subsidy goes to the landlord. So if you are looking for an inexpensive apartment, consider looking out for affordable housing in Rochester, New York.
Original Source: https://medium.com/@rochesterneighborworks/everything-you-needto-know-about-affordable-housing-a76fd8e20ec2