How does affordable and attainable housing play into sustainability and equality in neighborhoods? DCH builds mixed-income developments that provide housing for a number of income levels and one of the questions we get asked the most and one of the things that can be most confusing is the concept of the AMI or Area Median Income. We will look at how it affects housing availability and eligibility, and provide answers to our FAQ, on AMI.

What is AMI?

Why is this so confusing? For starters, it varies across areas and changes annually. Why is it important? Housing affordability is relative to how expensive an area is. Some people may qualify for housing assistance and not even know it, because of how expensive the housing. AMI is defined by the US Department of Housing and Urban Development (HUD) as the Area Median Income and the AMI for all cities across the country is defined annually. It is also called the Median Area Income.

Federal, state, and local housing programs use this measure to qualify eligibility based on income levels for housing subsidies. Housing programs use the same benchmark of income data released by the Housing and Urban Development Department (HUD) annually and the income limits/guidelines are calculated using American Community Survey (ASC) data for all regions.

What are the key metrics for AMI and qualifying for housing subsidies?

Your qualification depends on your total income, how affordable the area is, and how many people are in your household. Income limit categories are set by the HUD as extremely low, very low, and low. The income limits are a percentage of the AMI.

What are the types of Housing?

The types of housing that are eligible by the below definitions of AMI are:

Workforce Housing = 81% to 120% AMI
Moderate to Low Income = 50% – 80% AMI
Very Low to Extremely Low = 30% – 50% AMI

Different types of housing subsidies are available depending on where you live, who you live with, and how much you make. Many people do not realize that they qualify housing subsidies in certain areas with higher property values or where there is an unequal distribution of wealth. Legislators and local law and ordinance makers want to housing for those who work in the area for many reasons, from there being less strain on transportation to making a community more diverse and equitable.

How to calculate AMI?

To calculate your household’s area median income complete the following steps, for reference, Dallas’ Median income from 2020, thus the limit until 2021, was $86,200.

Add all household wage-earners' gross income (income before any taxes or other deductions)
Add total individuals (both adults and children) living in the home
Locate your household size by the HUD Calculations
Locate the closest income limit category to your income

You may be very surprised that you qualify for housing assistance. Click here to learn more about benefits available.

What AMI Percentages does DCH serve?

DCH builds housing that is both attainable and affordable, with residents from diverse backgrounds in earning and talent. Depending on where you fall in earning and family size, you may be eligible for federal or state assistance to apply for housing. See Dallas housing assistance information here., Our current portfolio consists of various housing options that support low to moderate-income families, we are working on future developments that will also support an AMI of up to 120%.

We hope you found this information useful. Contact DCH if you have questions!

FAQ on AMI with DCH