Out of Reach

Out of Reach

September 2000
Where the Numbers Come From


Sample Data: Rock County, Wisconsin
2000 Family Income
Location 2000 Estimated Median Family Income (HUD) Maximum Affordable Monthly Housing Cost by % of Family AMI
Annual Monthly 30% 50% 80% 100%
Rock County   $61,028  $5,086  $458  $763  $1,221  $1,526
Developed by HUD based on 1990 Census family median income estimates. Multiply Family AMI by percent of AMI given (30% = .30) to determine income ($61,028 x .30 = $18,308). Then multiply by .30 to get maximum amount that can be spent on housing for it to be affordable ($18,308 x .30 = $5,492.52). Divide by 12 to obtain monthly amount ($5,492/12 = $458).
 
2000 Estimated Renter Household Income
Location 2000 Estimated Renter Household Income (NLIHC) Maximum Affordable Monthly Housing Cost by % of Family AMI
Annual Monthly 30% 50% 80% 100%
Rock County   $32,227  $2,686  $242  $403  $645  $806
In Rock County, Wisconsin, in 1990, renters earned 52.8% of the Area Median Income ($61,028 x .528 = $32,227). This percentage is applied to the current AMI data as the best available method to estimate renter income in non-census years.  Multiply estimated renter income by .30 to determine 30% of income, the generally accepted standard for affordable housing costs ($32,227 x .30 = $9,668.10). Divide by 12 to determine monthly cost ($9,668.10/12 = $806).
 
Average Monthly Amount for Households Receiving Federal Assistance, December 1999
Location Maximum Monthly SSI Benefit Maximum Affordable Housing
Cost Per Month
Wisconsin   $337  $101
Social Security Administration, Office of Policy, web site: http://www.ssa.gov/statistics/Supplement/2000/pdf/index.html Multiply Maximum Monthly SSI Benefit by .30 to determine 30% of income, the generally accepted standard for affordable housing costs ($337 x .30 = $101).
 
SSI data is available only for states, not for counties, MSA, or nonmetro areas.
2001 Fair Market Rents by Number of Bedrooms
Location Zero One Two Three Four
Rock County   $358  $452  $559  $700  $785
Developed by HUD, updated yearly based on Consumer Price Index data or HUD regional rent change factors developed from Random Digit Dialing (RDD) surveys.
 
Income Needed to Afford FMR
Location Amount Percent of Family AMI Percent of Estimated
Renter Median
One
Bedroom		 Two
Bedroom		 Three
Bedroom		 One
Bedroom		 Two
Bedroom		 Three
Bedroom		 One
Bedroom		 Two
Bedroom		 Three
Bedroom
Rock County  $18,080  $22,360  $28,000  30%  37%  46%  56%  69%  87%
Multiply the FMR for the number of bedrooms indicated by 12 to get yearly rental cost (1BR: $452  x 12 = $5,424). Then divide by .30 to determine  the total income needed to afford $5,424 per year in rent (1BR $5,424/.30 = $18,080). The ratio of income needed for a unit with the number of bedrooms indicated (1BR: $18,080) divided by family AMI ($61,028), multiplied by 100. (($18,080/$61,028) x 100 = 30%). The ratio of income needed for a unit with the number of bedrooms indicated (1BR: $18,080) divided by estimated renter AMI ($32,227), multiplied by 100. (($18,080/$32,227)x100 = 56%).
 
Location Estimated Number of Renters Unable to Afford FMR
One
Bedroom		 Two
Bedroom		 Three
Bedroom
Rock County  28%  35%  44%
Based on the national income distribution of all renter households as reported by the 1999 American Housing Survey.
 
 Location
Housing Wage
Hourly Wage Needed to Afford
(@ 40 hrs./wk.)
Percent Change
in 2BR
Housing Wage
(1999-2000)
As % of Minimum Wage
($5.15/hr.)
One
Bedroom
FMR
Two
Bedroom
FMR
Three
Bedroom
FMR
One
Bedroom
FMR
Two
Bedroom
FMR
Three
Bedroom
FMR
Rock County  $8.69  $10.75  $13.46  2.50%  169%  209%  261%
Divide income needed to afford the FMR for a unit with the specified number of bedrooms (1BR: $18,080) by 52 (weeks per year). Then divide by 40, for the number of hours per work week. ($18,080/52 = $347.69; $347.69/40 = $8.69) In 1999, the 2 bedroom housing wage for Rock County was $10.48. Divide this number by the 2000 figure ($10.75) ($10.48/$10.75=.97488) and subtract this number from 1 and multiply by 100 ((1-.97488)x100 = 2.5%). Hourly wage needed to afford the FMR for a unit with the number of bedrooms indicated (1BR:$8.69) divided by $5.15, the minimum wage. This number is then multiplied by 100. (($8.69/$5.15) x 100 = 169%).
 
Location
Work Hours/Week
Necessary at Minimum
Wage ($5.15) to Afford
One
Bedroom
FMR
Two
Bedroom
FMR
Three
Bedroom
FMR
Rock County  68  83  105
Divide income needed to afford the FMR for a unit with the specified number of bedrooms (1BR: $18,080) by 52 (weeks per year). Then divide by $5.15, the minimum wage. ($18,080/52 = $347.69; $347.69/$5.15 = 68 hours)