Out of Reach 2005
America's Housing Wage Climbs

How to Use the Numbers
Sample Data: Anycounty, Anystate

Location	Number of Households
Location	Total Households	Renter Households	Renter Households as Percent of Total Households
Anycounty	1,132,886	368,339	33%
	In 2000, there were 1,132,886 households in Anycounty, Arizona.	In 2000, there were 368,339 renter households in Anycounty, Arizona.	Renter households make up 33% of the total households.

2004 Family Income
Location	2004 Annual Median Income (AMI)¹ (HUD)			Maximum Affordable² Monthly Housing Cost by % of Family AMI
Location	Annual	Monthly	30% of AMI	30%	50%	80%	100%
Anycounty	$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.

2005 Fair Market Rents (FMR)³ by Number of Bedrooms
Location	Zero	One	Two	Three	Four
Anycounty	$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.

2004 Renter Households
Location	Estimated Renter Median Annual Income	Income Needed to Afford 2BR FMR as Percent of Renter Median	Number Earning 30% of AMI or Less Unable to Afford Rent (2000)	Number Earning 30-50% of AMI Unable to Afford Rent (2000)	Monthly Rent Affordable at Renter Median
Anycounty	$34,101	98%	49,510	43,403	$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.	49,510 renter households with incomes of 30% or less of the area median income are unable to afford housing	43,403 renter households with incomes between 30-50%% of the area median income are unable to afford housing	A renter earning the median renter income can afford rent of no more than $853.

Income Needed to Afford FMR
Location	Annual Amount					Percent of Family AMI
Location	Zero Bedrooms	One Bedroom	Two Bedrooms	Three Bedrooms	Four Bedrooms	Zero Bedrooms	One Bedroom	Two Bedrooms	Three Bedrooms	Four Bedrooms
Anycounty	$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.)					As % of Minimum Wage (Anystate=$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
Anycounty	$10.56	$12.77	$16.06	$22.33	$26.29	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.	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 (Anystate=$5.15)
Location	Zero Bedroom FMR	One Bedroom FMR	Two Bedroom FMR	Three Bedroom FMR	Four Bedroom FMR
Anycounty	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, 2004.
2.	"Affordable" rents represent the generally accepted standard of spending not more than 30% of income on housing costs.
3.	HUD, 2005.
4.	Annual income of 30% of AMI or less is the federal standard for extremely low income households. Does not include HUD-specific adjustments.

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