The numbers in this table illustrate the problem of housing instability in Raleigh-Wake. Housing Instability means that a household has not yet experienced homelessness. It includes living in overcrowded and/or substandard housing; difficulty paying rent and/or mortgage; and experiencing frequent moves due to economic and/or affordability reasons. Households experiencing housing instability are at an increased risk for losing their housing.
Area Median Income (AMI)
AMI for a family of 4
AMI is updated annually by HUD; and is applied by specific geographic/statistical areas. AMI is used to set eligibility guidelines for housing assistance and formulate limits for financial assistance. AMI can be used as a system tool to prioritize funding assistance across the housing continuum.
Cost-burdened means that a household is spending more than 30% of their income on housing-related expenses. With fewer resources to dedicate to other expenses, cost- burdened households are one crisis away from losing housing.
Fair Market Rent (FMR)
FMR, which is established by HUD, indicates the rent required to obtain privately-owned, decent, safe, and sanitary rental housing in each area. FMR includes the cost of utilities (excluding telephone) and is calculated for units of varying sizes. FMR is used to determine standard payments for federal housing assistance programs. For comparison, at 30% AMI a household of four can afford a rent of $706 per month, whereas FMR for a 2-bed apartment is $1,163.
Unit shortage affordable and available to households
under 30% of AMI in the Raleigh, NC MSA
This gap refers to the number of units that are unavailable and/or unaffordable to households earning less than 30% AMI in Raleigh. The gap is the result of both an overall housing shortfall as well as a rental mismatch, which decreases housing stock available and affordable to households earning the least.
Hours a week to afford a 2-bedroom unit at FMR if earning minimum wage ($7.25/hour)
Monthly rent affordable if earning minimum wage ($7.25/hour)
This information (updated annually by the National Low-Income Housing Coalition) highlights the large gap between housing costs and wages; and further illustrates the need for housing affordable to households with incomes less than 30% of AMI.