You may be wondering what a low income apartment is, and how this may apply to you. Well, low income apartments are houses that can be afforded by those who have low or moderate income. In the US and in Canada, the normal cost of housing shouldn’t exceed 30% of the gross income for the low income apartments. For some programs in the US, the housing cost can be as high as 40% for the low income apartment. The housing costs would include the taxes, utility costs and also insurance.
Low income apartments are important and crucial to many US citizens that require affordable living.
Determining if a low income apartment is right for you
Low income apartments aren’t just for anybody. In order to apply for one, you’ll have to meet certain levels of income. This means that if you definitely have trouble affording a regular apartment, then this may be the solution that you’re looking for. Availability will also depend on the number of people apply for them.
Demand for the housing units
The demand for low income apartment is dependent on a number of factors. Some of the factors for low income apartment demand are the housing types, size of the apartment, location of the housing unit (the location of the unit would be in reference to the nearest transportation heads such as railway station, airport, bus stations, tube etc), the number of schools in that area or the school district etc.
Sometimes a particular housing area having low income apartment may demand more prices since people are willing to pay more for the amenities that are seen attached to that housing area. This will in turn push up the prices. Some households may have the willingness to pay for the low income apartment and may not have the ability to pay. For other households the reverse may also be true. Of course the most affordable low income apartment is where there is least relative demand to the supply of such apartment. For this reason too, some neighborhoods might be affordable in seemingly unaffordable districts.
The AMI
The Area Median Income (AMI) of a household defines the household income in that area. This in turn defines people who would buy the low income apartment in that area. Households are segregated in the following way:
* Moderate income households will earn about 80% of the AMI
* The Low income households will earn 50% or even less of the AMI.
Subsidies given by the federal government for low income apartment
The federal government gives various subsidies for people who are unable to afford even the low income apartment. They are given mortgage interest tax deduction. In fact the federal government has spent close to $120 billion on all federal expenditures in 2005. Every year the administration comes out with policies that will help those who wish you buy low income apartment.
Essentially housing assistance for those who want to buy or rent low income apartment is given by the federal government and this can be classified in three ways
* Under Section 8 program subsidies are given to individual households who need tenant based subsidies
* Other project based subsidies are given to those who wish to rent out their low income apartment to low income households
* Public housing is operated by the government. Sometimes private agencies are involved in operating the program too.
Since 1986, Low income Housing tax program has built many of the low income apartment and affordable housing for those who are well below the AMI of the district.
If you happen to fall under this category, you may be able to apply for low income apartments. This is a good way to find a good place for affordable living.
