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Facts and Figures
Who needs affordable Housing?
What is “Low Income,” “Very Low Income” and “Extremely Low Income”?
Housing is affordable when households can pay for it out of their monthly income and still have enough money left over for food, transportation, clothes, and health care. According to the Federal Government, housing is considered affordable if it consumes no more that 30% of a household’s income. Using this standard, a family of four with two working parents each earning minimum wage could only afford to pay approximately $650 in rent or a mortgage payment and utilities without cutting into other basic necessities. The 2005 Fair Market Rent for a three bedroom is $1, 469*, which is why the development, operation, and preservation of affordable housing important.
Affordable housing multi-family rental communities and single-family homes result from partnerships between private and nonprofit organizations, corporate investors, commercial lenders, and government agencies. Affordable housing is developed using a combination of rental incomes, private funding, and government subsidies. These multiple funding sources allow the construction of quality units with many amenities at an affordable rental rate. Government funding generally ensures rents will remain affordable for at least 5 to 55 years and require regular maintenance and quality inspections. *Source: 2005 Out of Reach, National Low Income Housing Coalition (NLIHC)
*Source: 2005 Out of Reach, National Low Income Housing Coalition (NLIHC)
Income Categories, Sacramento County, 2005
Source: State Department of Housing and Community Development, 1/05
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One Person Household |
Three Person Household |
Four Person Household |
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Income level |
Income Amount |
Affordable Rent |
Income Amount |
Affordable Rent |
Income Amount |
Affordable Rent |
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Area Median Income |
$47,000 |
$1,175 |
$57,700 |
$1,442 |
$64,100 |
$1,602 |
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Low Income (80% AMI) |
$35,900 |
$897 |
$46,150 |
$1,154 |
$51,300 |
$1,283 |
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Very Low income (50% AMI) |
$22,450 |
$561 |
$28,850 |
$721 |
$32,050 |
$801 |
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Extremely Low Income (30% AMI) |
$13,450 |
$336 |
$17,300 |
$432 |
$19,250 |
$481 |
Under the federal government’s definitions, a family is considered “low income” if the household income is below 80% of an area’s median income (AMI), after adjustment for family size. Very long income is calculated at 50% AMI and extremely low at 30% AMI.
Most residents of affordable housing work. The following are examples of jobs in Sacramento County that pay salaries that qualify as low income very low and extremely low income. These workers struggle to find housing they can afford. “Out of Reach” 2005 documents that in Sacramento, a minimum wage earner would need to work 115 hours per week to afford a two-bedroom market rate apartment.
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Income Category, Family of 3 |
Job Title |
Annual Salary |
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Low Income, 80% AMI |
Environmental Engineering Technician School Counselor Medical Records Technician Entry Firefighter |
$40,660 $47,590 $27,660 $24,742 |
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Very Low Income, 50% AMI |
Receptionist Preschool Teacher Veterinary Technician |
$22,690 $23,940 $19,640 |
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Extremely Low Income, 30% AMI
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Sales Person, Retail Cashier Minimum Wages |
$22,930 $17,250 $14,040 |
Source: Employment Development Department, March 2004