Affordable Housing

Affordable housing seems like the dream. Housing that people can enjoy and pay for without breaking the bank. But what actually defines this concept? Can you and I look at the same rental and both agree that it’s affordable? That depends..

 

Let’s start with the basics and discuss who even sets the standard for what defines this concept. In America, the US Department and Housing and Urban Development (HUD) states that:

 

Housing in which the occupant pays no more than 30% gross income toward housing costs, including utilities.

 

Further down the definition deep dive we find that gross income is:

 

Total pay before taxes.

 

And to finish off the Wikipedia journey, utilities are:

 

The basic services that your home or apartment needs to keep it functioning properly and comfortably. Examples include: water, sewer, electric, internet, snowplowing, and garbage services.

 

What is affordable housing? It depends on you and your needs. The TL:DR answer is your rent and utilities should cost you less than 30% of your combined salary and all sources of income.

 

For example. I work 2 part-time jobs. One pays me $20/hour and I work here on average 30 hours per week. My side hustle that I do at night earns monthly about $1000. My gross monthly income is $3000. By definition of HUD, I should pay no more than $900 per month for rent plus utilities. If I have a roommate or live with my partner, both of our incomes are combined to cover the rent costs.

 

Affordable housing is a place to live that costs less than ⅓ of what you make.

 

According to New Hampshire Housing, the average income of a person looking to rent a home in the state is $48,000. In Carroll County, that actually goes down to $41,000 and in Coos, it goes down to $31,000.

 

As housing affordability is based on your income, the above average incomes mean that the average granite stater should spend no more than $1205/ month on rent. If you live in Carroll County, this is $1023. Again, these numbers come from the idea that rent plus utilities should stay less than 30% of your gross pay.

 

In the state of NH, half of renters are cost-burdened. Half of renters are currently living in a situation where they spend more than 30% of gross pay on housing.

 

Half of the people renting in NH are spending more on rent than recommended by our own government.

 

Affordable housing is housing that doesn’t leave you with the question of do I pay for heat or groceries this month. Affordable housing is spending less than ⅓ of your salary on the roof over your head.

 

Affordable housing is something we all should have.