Subtotal your monthly expenses for these housing costs:
– rent or mortgage
– utilities
– taxes
– insurance and etc.
If it is equal to or less than 30% of your income, you are paying an “Affordable” rate for housing.
If you make $1,000 a month in income, $325/mo rent is too much.
Typically, the phrase “affordable housing” means any housing where the total housing costs are affordable (cost no more than 30% of income) for a family that earns no more than 80% of the Area Median Income (AMI).
In Greater Boston, 80% of AMI for a family of 2 is $51,400. For a family 4 it is $64,200.
