Out of Reach 2003
Out of Reach 2003:
America's Housing Wage Climbs
How to Use the Numbers
Sample Data: Maricopa County, Arizona
| Location | Number of Households | ||
|---|---|---|---|
| Total Households | Renter Households | Renter Households as Percent
of Total Households |
|
| Maricopa County * | 1,132,886 | 368,339 | 33% |
| In 2000, there were
1,132,886 households in Maricopa County, Arizona. |
In 2000, there were
368,339 renter households in Maricopa County, Arizona. |
Renter households make
up 33% of the total households. |
|
| 2003 Family Income | |||||||
|---|---|---|---|---|---|---|---|
| Location | 2003 Estimated Annual
Median Income (AMI)1 (HUD) |
Maximum Affordable2 Monthly Housing Cost by % of Family AMI | |||||
| Annual | Monthly | 30% of AMI | 30% | 50% | 80% | 100% | |
| Maricopa County * | $58,300 | $4,858 | $17,490 | $437 | $729 | $1,166 | $1,458 |
| The median annual family income is $58,300. | The median monthly family income is $4,858 | 30% of the Area Median Income (AMI) is $17,490. | For an extremely low income family, earning 30% of the Area Median Income, monthly rent of $437 or less is considered affordable. | For a very low income family, earning 50% of the Area Median Income, monthly rent of $729 or less is considered affordable. | For a moderately low income family, earning 80% of the Area Median Income, monthly rent of $1,166 or less is considered affordable. | For a family earning 100% of the Area Median Income, monthly rent of $1,458 or less is considered affordable. | |
| 2004 Fair Market Rents (FMR)3 by Number of Bedrooms | |||||
|---|---|---|---|---|---|
| Location | Zero | One | Two | Three | Four |
| Maricopa County * | $549 | $664 | $835 | $1,161 | $1,367 |
| The Fair Market Rent for a 0 bedroom rental unit is $549. | The Fair Market Rent for a 1 bedroom rental unit is $664. | The Fair Market Rent for a 2 bedroom rental unit is $835. | The Fair Market Rent for a 3 bedroom rental unit is $1,161. | The Fair Market Rent for a 4 bedroom rental unit is $1,367. | |
| 2003 Renter Households | ||||||
|---|---|---|---|---|---|---|
| Location | Renter Annual Income | Income needed to afford 2BR FMR
as Percent of renter median |
Percent of Renters Unable
to Afford 2BR FMR |
Monthly Rent Affordable
at Renter Annual Income |
||
| Maricopa County * | $34,101 | 98% | 49% | $853 | ||
| The median renter income is $34,101. | A renter would have to earn at least 98% of the renter median income for a 2BR unit at FMR to be affordable. | 49% of renters are unable to afford the FMR for a 2BR unit. | A renter earning the median renter income can afford rent of no more than $853. | |||
| 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 |
|
| Maricopa County * | $21,960 | $26,560 | $33,400 | $46,440 | $54,680 | 38% | 46% | 57% | 80% | 94% |
| For a 0 bedroom unit to be affordable, a renter would need an annual income of $21,960. | For a 1 bedroom unit to be affordable, a renter would need an annual income of $26,560. | For a 2 bedroom unit to be affordable, a renter would need an annual income of $33,400. | For a 3 bedroom unit to be affordable, a renter would need an annual income of $46,440. | For a 4 bedroom unit to be affordable, a renter would need an annual income of $54,680. | The income needed to afford a 0 bedroom unit at the Fair Market Rent represents 38% of the AMI. | The income needed to afford a 1 bedroom unit at the Fair Market Rent represents 46% of the AMI. | The income needed to afford a 2 bedroom unit at the Fair Market Rent represents 57% of the AMI. | The income needed to afford a 3 bedroom unit at the Fair Market Rent represents 80% of the AMI. | The income needed to afford a 4 bedroom unit at the Fair Market Rent represents 94% of the AMI. | |
| Location | Housing Wage | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Hourly Wage Needed to Afford
(@ 40 hrs./wk.) |
Percent Change
in 2BR Housing Wage (2002-2003) |
As % of Minimum Wage
(Arizona=$5.15) |
|||||||||
| 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 |
||
| Maricopa County * | $10.56 | $12.77 | $16.06 | $22.33 | $26.29 | 3.60% | 205% | 248% | 312% | 434% | 510% |
| A renter household would need to earn $10.56 per hour for a 0 bedroom unit at Fair Market Rent to be affordable. | A renter household would need to earn $12.77 per hour for a 1 bedroom unit at Fair Market Rent to be affordable. | A renter household would need to earn $16.06 per hour for a 2 bedroom unit at Fair Market Rent to be affordable. | A renter household would need to earn $22.33 per hour for a 2 bedroom unit at Fair Market Rent to be affordable. | A renter household would need to earn $26.29 per hour for a 3 bedroom unit at Fair Market Rent to be affordable. | Between 2001 and 2002, the amount a renter would have to earn in order to afford a 2 bedroom unit increased by 3.60%. | The housing wage for a 0 bedroom unit represents 205% of the minimum wage. | The housing wage for a 1 bedroom unit represents 248% of the minimum wage. | The housing wage for a 2 bedroom unit represents 312% of the minimum wage. | The housing wage for a 3 bedroom unit represents 434% of the minimum wage. | The housing wage for a 4 bedroom unit represents 510% of the minimum wage. | |
| Location | Work Hours/Week
Necessary at Minimum Wage to Afford (Arizona=$5.15) |
||||
|---|---|---|---|---|---|
| Zero
Bedroom FMR |
One
Bedroom FMR |
Two
Bedroom FMR |
Three
Bedroom FMR |
Four
Bedroom FMR |
|
| Maricopa County * | 82 | 99 | 125 | 173 | 204 |
| A renter earning the minimum wage must work 82 hours per week to afford a 0 bedroom unit at the Fair Market Rent. | A renter earning the minimum wage must work 99 hours per week to afford a 1 bedroom unit at the Fair Market Rent. | A renter earning the minimum wage must work 125 hours per week to afford a 2 bedroom unit at the Fair Market Rent. | A renter earning the minimum wage must work 173 hours per week to afford a 3 bedroom unit at the Fair Market Rent. | A renter earning the minimum wage must work 204 hours per week to afford a 4 bedroom unit at the Fair Market Rent. | |
| C H A R T F O O T N O T E S | |
|---|---|
| 1. | HUD, 2003. |
| 2. | "Affordable" rents represent the generally accepted standard of spending not more than 30% of income on housing costs. |
| 3. | HUD, 2004, proposed. |
| 4. | Annual income of 30% of AMI or less is the federal standard for extremely low income households. Does not include HUD-specific adjustments. |
| D A T A F O O T N O T E S | |
|---|---|
| Arizona: | FMRs for jurisdictions labeled with an asterisk (*) have FMRs calculated at the 50th percentile. See Appendix A for explanation. |
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