Low-income Housing
The definition of low-income housing is any house that is either rented or owned by an individual or family that has a monthly household income that does not exceed a certain percentage of the median household income of a particular area (AMI). The percentage of the household’s income that is eligible to apply for low-income housing is regulated by the Department of Housing and Urban Development (HUD). Explaining low-income housing in an accurate way translates differently to every area where it is applied because it always takes into account the median household income.
What low-income housing means?
Low-income housing is the situation in which a family is unable to afford housing because of the median house value of the area in which they live. This happens because their household income is less than what a household should spend for housing expenses. The generally accepted percentage of monthly income that should be spent on housing expenses is 30%. Any household that spends a higher percentage than that is considered burdened and can, therefore, apply for low-income housing.
There are three categories of low-income households that can apply for low-income housing:
- Extremely low-income - those who make less than 30% of the AMI.
- Very low-income - those who make between 30% and 50% of the AMI.
- Low-income - those who make between 50% and 80% of the AMI.
What is the definition of low-income housing?
As explained above, low-income housing is the house that low-income households can apply for in order to not struggle with their monthly expenses. Explaining low-income housing, however, needs to also be done from the developers perspective. For tax reduction incentives, private housing developers venture in creating low-income housing for those who need them. Like that, they reserve a certain amount of units from a new or rehabilitated housing development for low-income families. This gives them tax deductions for the upcoming years. Some of the most affordable places to live use this system to generate more low-income housing for those who need it.
Popular Real Estate Terms
Suppose you wish to become a legit professional in a specific domain. In that case, you have to get a license, an official permit, or a document. A license acknowledges your studies and ...
Changing property ownership. An example is the sale of a home to another. ...
Land surveying measurement that is 16.5 feet in length, or 5 1/2 yards. A perch is also called a rod or a pole. Today the term perch is seldom used. It is found in old deeds, surveys, and ...
House made using standardized components that are preassembled on an assembly line in a factory rather than being built from "scratch" on a site. Normally, the prefabricate house is trucked ...
Voluntary giving up of a right of a lien, usually on a temporary basis. The waiver may be explicitly stated or implied. An example is when a lender waives its right of lien against ...
A promise to uphold a guarantor's contractual or financial responsibility in the even of default. ...
Certification granted by the Realtors National Marketing Institute upon successful completion of an education program and the required residential sales experience. Candidates must already ...
Place where real estate is situated. The geographic location of property affects its value. For example, real estate in a good neighborhood is worth more. ...
Bankruptcy declared by any insolvent person or business. In contrast to involuntary bankruptcy, which is applied for by the creditors. ...
Comments for Low-income Housing
My partner and I need a real estate agent to help us find an affordable apartment to rent. We are looking in the Manhattan and Brooklyn areas. Please contact me back as soon as possible with all of the details on what we would need, rates of payment, and more. Thank you.
May 04, 2020 16:28:04Hey, Britta! Congrats on your decision. We can help you find the best local professional among the realtors in Brooklyn NY that is going to fill you in with all the details about the area and all the steps you need to follow.
May 11, 2020 08:48:29low income renting
Nov 25, 2019 16:37:42Hi Jack,
If you need assistance with low incoming renting don't hesitate to reach out to one of our agents that will gladly assist you. If you prefer to reach out to us directly feel free to call our customer service department at 1-866-495-4953 x0. Good luck!
Nov 27, 2019 13:22:17A village near me is looking for a Real Estate Agent that can sell a low-income housing apartment building. Will it be different than selling a normal multi-family building?
Aug 08, 2019 16:06:24Hello, Karen! The sale process shouldn't be different. You simply have more units to sell than in a triplex or fourplex. If you have to sell the whole building, and not each unit separately, then the buyer will most likely secure a commercial loan instead of a residential mortgage. You have to evaluate the performance of the building, the maintenance costs, and the necessary improvements to make the units rentable or move-in ready. So, it shouldn't be too hard, just a little bit more complex. If you need more help, don't hesitate to contact other real estate agents in Wisconsin and ask for advice.
Aug 13, 2019 06:46:14I'm looking for a real estate agent specializing in low-income apartments like Section 42 etc.
Jul 02, 2019 14:01:40Hello, John! Please contact one of the real estate agents in Phoenix AZ. You may also be interested in finding ways to save more money for a down payment. No matter how low is your income, you can become a homeowner.
Jul 04, 2019 03:48:50How do I get qualified & also find money to put down on a home?
Aug 24, 2018 10:52:38Hey Adna,
Aug 27, 2018 10:56:00You mean to low-income housing loans and such? If so, you need to apply with the Federal Housing Administration (FHA) within the US Department of Housing and Urban Development. Now, if you were asking in general, the first thing you need is to start working on your credit score, an integral part on acquiring loans. Do you know what is credit score and how does it impact real estate? You better. From there, you start looking at the best options for loans with banks and other loans institutions and close the deal with the one who gives you the best conditions. Good luck!
I'm on a fixed income and would like to buy my own home and want to get on the process of eventually becoming a home owner
May 04, 2018 15:12:46Hey, Charles
May 04, 2018 15:56:12That's great to hear! Congratulations on this important moment of your life!
Feel free to enjoy our many resources on the blog, the buyer advice page and the real estate glossary. It's good to be well-informed when doing the whole home buying process.
And whenever you feel ready to go out there home hunting, start with finding local real estate agents in Philadelphia PA, your hometown.
The best of all of this: completely free!
Once again, congrats and good luck!
Have a question or comment?
We're here to help.