Out of Reach

Rental Housing for America's Poor Families:
Farther Out of Reach Than Ever
2002

Where the Numbers Come From
Sample Data: New Castle County, Delaware
 
Location Number of Households
Total Households Renter Households Renter Households as Percent
of Total Households
New Castle County   188,935  56,421  29.86%
2000 U.S. Census. Number of renter households divided by total 
number of households (188935 / 56421 = .2986). 
Multiply by 100 (.2986 x 100 = 29.86%)
 
2002 Family Income
Location 2002 Estimated Median Family Income (HUD) Maximum Affordable Monthly Housing Cost by % of Family AMI
Annual Monthly 30% 50% 80% 100%
New Castle County   $75,900  $6,325  $569  $949  $1,518  $1,898
Developed by HUD, based on 1990 Census family median income estimates. Annual median income divided by 12 months ($75,900 / 12 = $6,325), Multiply Family AMI by percent of AMI given (30% = .3) and then by by .3 to get maximum amount that can be spent on housing for it to be affordable ($75,900 x .30 = $22,770). Divide by 12 to obtain monthly amount ($22,770 / 12 = $1,898).
 
2002 Fair Market Rents by Number of Bedrooms
Location Zero One Two Three Four
New Castle County   $490  $645  $752  $1,022  $1,235
Developed by HUD, updated yearly based on Consumer Price Index data or HUD regional rent change factors developed from Random Digit Dialing surveys. See Appendix B.
 
Income Needed to Afford FMR
Location Amount Percent of Family AMI
Zero
Bedrooms		 One
Bedroom		 Two
Bedrooms		 Three
Bedrooms		 Four
Bedrooms		 Zero
Bedrooms		 One
Bedroom		 Two
Bedrooms		 Three
Bedrooms		 Four
Bedrooms
New Castle County  $19,600  $25,800  $30,080  $40,880  $49,400  26%  34%  40%  54%  65%
Multiply the FMR for the number of bedrooms indicated by 12 to get yearly rental cost (2BR: $752 x 12 = $9,024). Then divide by .30 to determine the total income needed to afford $9,024 per year in rent ($9,024 / .30 = $30,080). The ratio of income needed for a unit with the number of bedrooms indicated (1BR: $25,800) divided by family AMI ($75,900) multiplied by 100 (($25,800/$75,900) x 100 = 34%).
 
 Location
Housing Wage
Hourly Wage Needed to Afford
(@ 40 hrs./wk.)
Percent Change
in 2BR
Housing Wage
(2001-2002)
As % of Minimum Wage
( DE=$6.15 )
Zero
Bedroom
FMR
One
Bedroom
FMR
Two
Bedroom
FMR
Three
Bedroom
FMR
Four
Bedroom
FMR
Zero
Bedroom
FMR
One
Bedroom
FMR
Two
Bedroom
FMR
Three
Bedroom
FMR
Four
Bedroom
FMR
New Castle County
 $9.42
  $12.40  $14.46
 $19.65
  $23.75  3.44% 153%
202%
235%
 320% 386%
Divide income needed to afford the FMR for a unit with the specified number of bedrooms (2BR: $30,080) by 52 (weeks per year) ($30,080 / 52 = $578.46). Then divide by 40, for the number of hours per work week ($578.46 / 40 = $14.46). Subtract 2001 figure  from 2002 figure ($14.46 - $13.98 = $.48), and divide by 2001 figure ($.48 / $13.98 = .0344). Multiply by 100 (.0344 x 100 = 3.44%). Divide Housing Wage by Delaware's minimum wage and multiply by 100 ($14.46 / $6.15 = 2.35, 2.35 x 100 = 235%).
 
Location
Work Hours/Week
Necessary at Minimum
Wage to Afford
( DE=$6.15 ) 
Zero
Bedroom
FMR
One
Bedroom
FMR
Two
Bedroom
FMR
Three
Bedroom
FMR
Four
Bedroom
FMR
New Castle County  61  81  94  128  154
Divide income needed to afford the FMR for a unit with the specified number of bedrooms (2BR:$30,080) by 52 (weeks per year). Then divide by $6.15, Delaware's minimum wage. ($30,080/52 = $578.46; $578.46/$6.15 = 94 hours).