Finding a home you can afford can feel overwhelming, especially in a competitive market. Affordable housing programs can help bridge the gap, but what exactly does “affordable” mean?
This is the number one question that I get all the time, even from licensed realtors. The public, nor our community aren’t even sure. So, let’s get this answered for you.
This blog clarifies the concept of AMI, its role in affordable housing, and the current efforts to create inclusive communities.
Affordable housing is based on the Area Median Income (AMI), set by the United States Department of Housing and Urban Development (HUD).
The Atlanta AMI Metro FMR area is Atlanta – Sandy Springs – Marietta and the AMI is released annually by HUD. (well, unless we’re in a pandemic and the government shuts down ; )).
AMI 101
The Core: AMI is the midpoint of a specific area’s income distribution (or average rent price). Think of it as the salary that falls smack dab in the middle – a similar number of people make more or less than this amount.
Calculated by the Experts: The U.S. Department of Housing and Urban Development (HUD) crunches the numbers annually to determine AMI for various locations.
Why it Matters: AMI plays a crucial role in determining eligibility for affordable housing programs, rent control regulations, and even tax breaks for investors.
Over the years the term “affordable housing” became stigmatized by groups that used that to keep out or restrict large groups of low-income rental public housing communities from entering their neighborhoods.
Historically, communities with high concentrations of poverty became ridden with gangs, drugs, crime and deferred maintenance. Those communities were vacated and demolished and those families were relocated to mixed-income communities across the metro.
Current studies have shown that thriving communities must be mixed-income, providing housing options for a variety of price points so those who work and play in the community can also live there.
You may hear affordable housing used under attainable housing, housing affordability, low to moderate-income housing and missing middle housing. No matter how you phrase it, you just need to know what affordable housing now means.
Developers & builders build at different levels of AMI. If you’re in the market for a home, you may have seen phrases while scrolling through listings that have “Income restrictions like: Must be at or below 120% AMI.” This can suddenly strick confusion if you’re not sure what it means.
If you take a look at the 2024 AMI for Atlanta, you may be shocked at the income limits and who qualifies. This may be the perfect opportunity for your client and maybe even you!
There has been a concerted effort to create more affordable housing opportunities in Metro Atlanta across the five metro counties: Fulton, Dekalb, Clayton, Cobb & Gwinnett.
HouseATL is the non-profit that is spearheading this coalition. I am honored to serve as an Advisory Board member and Co-Chair of the Homeownership Working Group with Dr. Christie Cade of NeighborWorks.
Through these efforts, public, private, non-profit and philanthropic collaborations have spurred affordable housing development at multiple AMI price points.
So, if you take a look at the 2024 HUD AMI chart, a single person, household of 1 could qualify to purchase an affordable home under 120% of AMI if they make under $90,300/year.
This is usually shocking for most to see. That’s a big difference from the misperception of “large communities of public housing”. Affordable housing is not a stigma, it is building housing that the workforce community can afford.
For Buyers, There’s no need to get frustrated, this is where our Sovereign Realty + Mgmt team is here to be your guide. Stay tuned for our Live Sovereign Housing Cohort, where we’ll guide you, along with our partners, step by step through the qualifying process to get you into your home.
We partner with Builders across the metro and can pair you with units that are under construction and will be on the market for sale so you are ready to purchase one of these opportunities.
Your home purchase is not out of reach. We will even educate and guide you with down payment assistance options that are available for you, read our blog where we bust the myths about down payment assistance.
For Investors & Developers: Understanding AMI can help you target properties with strong rental yields or target buyers based on the income demographics of the area.
This can be especially valuable for investors specializing in affordable housing or who want to add some affordable units to their portfolio. Schedule time to chat with me about how we can help you design and reach this goal.
Whether you’re a renter seeking your perfect place or an investor navigating the market, understanding AMI can be a game-changer. Here’s how we can help:
For Renters: We partner with affordable housing non-profits and investors that offer affordable rentals with AMI income caps up to 120% of AMI.
If you’re in the market for an affordable rental in Metro Atlanta, be sure to visit RentAtlantaNOW.com for a range of our current affordable housing options. New listings are added weekly!
Finding affordable housing can feel overwhelming, but understanding AMI is a powerful first step. By exploring resources and programs available you’ll increase your chances of finding a place that fits your budget.
Ready to navigate the real estate world with confidence? Contact us and we’ll find your perfect place together!