WHAT IS "AFFORDABLE" HOUSING IN BRATTLEBORO?

 

warning:  There is no scientific answer that everyone will agree on.

 

The federal government figures that housing should not take more than 30% of a household's gross income.    (In rental housing the 30% includes rent and all utilities; in single-family housing it includes mortgage, taxes and insurance.)  That federal standard is the generally accepted definition of affordability.

 

Obviously, even the fanciest housing is affordable to someone.  But, in common usage, affordable means affordable to low-income people.

 

"Low-income," as used by the government and by every entity that deals with the government, means that a household's gross annual income is below 80% of the county's1 median income.  And the county's median income is estimated by the Department of Housing and Urban Development (HUD) and published each year around February.

 

"Low-income" is commonly used to mean any household with income below the 80% standard.  But HUD distinguishes two other groups.  "Very low income" means that a household's gross income is below 50% of median.  And "extremely low income" is below 30%.

 

The median annual income for a four-person household in Windham County is estimated by HUD to be $58,200(!) in 2007.  On that basis:

    a "low-income" household here would have income between $29,100 (50% of median) and $46,560 (80%);

    a "very low income" household would have income between $17,460 (30% of median) and $29,100;

    and an "extremely low income" household would have income below $17,460.

 

But those figures are all for a four-person household.  HUD adjusts its definition of low-income to reflect household size.  It does this by formula, based on the median for a four-person household:

    maximum "low income" for a 1-person household is 70% of the 4-person maximum

                           "                        2-person           "          80%                    "

                           "                        3-person           "          90%                    "

                           "                        4-person          "         100%                  "

                           "                        5-person           "         108%                   "

                           "                        6-person           "         116%                   "

                           "                        7-person           "         124%                   "

 

We now can calculate the maximum a household can pay in Windham County if their housing - rented or owned - is to be considered "affordable."

 

     (surprising) maximum housing costs affordable for a "low-income" household

     according to HUD's version of County median income2_________________________

                                         maximum income to be "low-income"        ÷ 12 months x 30% = maximum

    size of household              (80% of HUD's County median)__         ___affordable monthly cost____     

                   1                                          $32,592                                                       $  815

                   2                                            37,248                                                           931

                   3                                            41,904                                                        1,048

                   4                                            46,560                                                        1,164

                   5                                            50,285                                                        1,257

                   6                                            54,010                                                        1,350

                   7                                            57,734                                                        1,443

over

 

 

HOWEVER:  Those figures are based on a median income for Windham County that is widely questioned.  For one thing, Census data make clear that Brattleboro's median is significantly lower than the County's due to  a disproportionate number of low-income people living here and a disproportionate number of high-income people living in some other parts of the County.

 

THEREFORE:  In considering the Brattleboro population, we estimate that 60% of HUD's County median is a closer gauge of "low-income" than 80%.  So, when working with HUD's figures, we use for "low-income" 60%

of HUD's median.

 

    Maximum housing costs affordable for a low-income family are then as follows:2

                                           maximum income to be what we              

                                         consider low-income for Brattleboro          ÷ 12 months x 30% = maximum

    size of household            (60% of HUD's County median)__         ___ affordable monthly cost___     

                   1                                         $24,440                                                      $  611

                   2                                           27,936                                                          698

                   3                                           31,428                                                          786

                   4                                           34,920                                                          873

                   5                                           37,714                                                          943

                   6                                           40,507                                                       1,013

                   7                                           43,301                                                       1,083

 

This will all be simpler when we have more current Census data for Brattleboro.  We will then be better able    to adapt HUD's County figures.  Meanwhile, our practice is to use 60%-of-HUD-median as our standard      for "low-income" and to calculate affordable housing costs from there (as in box).

 

 

Brattleboro Area Affordable Housing

9/07

 

 

 

 

 

 

___________

1  HUD does not estimate median incomes for rural towns – only for counties.  Census data give a more accurate

    Brattleboro picture but, unfortunately, are out-of-date.

 

2  A more familiar way to look at affordable housing cost may be to work from hourly wages:

 

                                                                        maximum affordable                                                         

                                                                                     housing cost

    $  8/hour         =  $16,640/year  ÷ 12 x 30%  =           $  416

      10/hour               20,800/year           "                            520

      12/hour               24,960/year           "                            624

      15/hour               31,200/year           "                            780

      20/hour               41,600/year           "                         1,040

    But it probably is best to stick with a HUD-based formula since theirs is the common currency.