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Habitat for Humanity affiliates in the United States typically serve families earning between 25 and 50 percent of the Area Median Income. Homeownership opportunities for these families, classified as "very low-income," can be scarce.
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by Shawn Reeves
The U.S. Department of Housing and Urban Development addresses housing issues in the United States, in addition to working in other related areas such as historic preservation, lead hazard control and community planning programs. In order to establish standards for frequently used terminology, HUD utilizes a very specific vocabulary. Admittedly, the terminology isn't easy-to-read prose, but it is functional. When you advocate for affordable housing in the United States, familiarity with these definitions may prove helpful.
Fair Market Rent (FMR): Standard-quality rental housing units in any community will span a range of prices. Fair Market Rent is established by determining the 40th percentile rent (including utilities, but not telephone) along that range. In other words, Fair Market Rent is the dollar amount below which 40 percent of standard-quality rental housing units rent in a community.
Family: Once interpreted as households with relatives, children, elderly single persons older than 62 and single persons with disabilities, the definition of family was broadened in 1990 by the Cranston-Gonzalez National Affordable Housing Act to encompass all households, including those comprised only of non-elderly singles living alone or with other singles to whom they are not related.
Elderly: Household in which the householder or spouse is at least 62 and no children are present.
Inadequate housing: Housing with severe or moderate physical problems in any of five areas: plumbing, heating, electrical system, upkeep and hallways.
Overcrowding: The condition of having more than one person per room in a residence.
Rent or cost burden: The ratio between payments for housing (including utilities) and reported household income.
Moderate rent or cost burden: Housing costs more than 30 percent but less than 50 percent of reported income.
Severe cost burden: Housing costs exceed 50 percent of reported income.
Income: Money reported for wage and salary income, net self-employment income, Social Security or railroad retirement income, public assistance or welfare payments and all other cash income prior to deductions for taxes or any other purpose.
Family income: Reported income from all sources for the householder and other household members related to the householder.
Household income: Reported income from all sources for all household members at least 18 years of age.
Low income: Reported income not in excess of 80 percent of HUD approved median family income (HAMFI).
Very low income: Income not in excess of 50 percent of HAMFI.
Extremely low income: Income not in excess of 30 percent of HAMFI.
Poor: Household income below the national poverty cutoffs for the United States for that household size. (The poverty threshold for a family of four currently is $18,392.)
Middle income: Households with incomes between 81 and 120 percent of HAMFI.
Upper income: Households with income more than 120 percent of HAMFI.
To learn more, visit www.huduser.org, click "publications" and browse to find information about community development, homeownership and affordable housing.
