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Housing Affordability 101

Houser Staff

Created on August 30, 2023

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Transcript

Housing Affordability 101

Affordable to whom?

Learning Objectives

  • Learners will understand the government's definition of affordable housing
  • Learners will understand the income categories used by the government
  • Learners will be able to use this knowledge to understand the affordability situation in Texas

What is 30% of your income?

  • If a family spends less than 30% of their income on housing = "affordable"
  • This definition ignores a lot of context

Texas renters burdened / severely burdened by rent

Two most common ways to subsidize housing

  1. Tenant pays 30% of income for rent
  2. Tenant pays a set amount for rent

Eligibility for subsidized housing is based on your area's median family income

Federal housing income categories

[EXAMPLE] Anytown USA - where the median income is $100,000

Amarillo $68,000

Lubbock $71,000

Dallas $67,000

Fort Worth $84,000

Median family incomein Texas cities (2021)

El Paso $57,000

Austin $113,000

Houston $62,000

San Antonio $66,000

Click this icon for a tip on calculating income figures:

McAllen $69,000

Many subsidized housing programs are reserved for specific populations

Just because a family is eligible, doesn't mean they'll get subsidized housing

Not enough affordable housing rentals in Texas

Government housing programs favor middle-income populations over the lowest income categories

Housers advocate at the Texas Legislature

SUMMARY: Affordable for whom?

Resources

U.S. Census
NLIHC Gap Report: Texas
NLIHC Advocates Guide

Calculating income

For converting between hourly and annual wage, a good rule of thumb is that a year of working full-time is about 2000 hours, so you can use that number to get decent estimates. For example:

  • $15,000 a year divided by 2000 hours = $7.50 per hour.
  • $10 per hour wage times 2000 work hours in year = $20,000 per year.