Housing is considered “affordable” if the occupant is paying no more than 30% of his/her gross income for housing costs, including utilities.
Fair market rent (FMR) is the maximum monthly rent that HUD allows for properties participating in its programs, such as Section 8.
| Final FY 2007 FMRs By Unit Bedrooms | |||||
| Efficiency | One-Bedroom | Two-Bedroom | Three-Bedroom | Four-Bedroom | |
| Final FY 2007 FMR | $554 | $632 | $705 | $893 | $955 |
(table source: HUD)
So, based on FMR for Greensboro, a single person would have to earn $10.67 an hour in order to “afford” an efficiency apartment (without utilities added, which means they’d have to earn more than that to cover utilities and make it really affordable), or $12.40 an hour to afford a 1-bedroom apartment (again, without utilities factored in, so up that hourly wage, too.)
For professional folks, that may not sound like a lot of money, but what if you make minimum wage? At $6.15 an hour, even the efficiency apartment is well out of reach. And what if you make minimum wage and you’re the sole breadwinner for a family with children? What if you’re on SSI? The current maximum monthly benefit is $637. Unless you’re able to get some kind of housing assistance, you’re likely going to spend much more than 30% of your income on housing.
HUD programs, like public housing communities and the Section 8 program, help make housing affordable for low-income individuals and families, but many who are eligible are not able to get into these programs because there isn’t enough housing for everyone — waiting lists are long. HUD is the largest provider of affordable housing in Greensboro, but there are several other government and non-profit programs that provide affordable housing here, as well. However, there is a definite gap between the supply of affordable housing and the demand for it. People who can’t get affordable housing have to choose between paying rent and paying other bills, like food or medical bills; or they have to “double up” and live with family or friends; or they become homeless.
That really does clear up the NEED for affordable housing. I mean, think of all the people who live off of their retail jobs/other min. wage jobs? I’ve worked part time retail for some extra income, but the other people who worked there… that was their job. I’ve worked with single moms with more than one kid on that income. Most of them lived out in the country and would drive in to work… well what happens if you don’t have a car? (Not looking for an answer there)
You should read “Nickel and Dimed: On (Not) Getting By in America,” if you haven’t already. Good insight into what it’s like to support yourself on minimum wage. Kind of depressing. But good to know.
I have a workable plan to make homes anyone can afford. Why is it no one in Greensboro wants to get behind it? I find all this talk to be very frustrating and of little value.
I actually like this idea a lot. I want one! But with either straw bale houses or shipping container homes, there still has to be land to put them on and funds to pay for the project. Money, money, money. That’s usually the issue. Find some funding for the straw bale thing and I’m quite sure you’ll find some local interest.
I don’t need land or funding– I only need committed people. Okay, I need a little bit of money but I can find it if I have the people.