Area Median Income (AMI) and Affordable Housing
Quick explainer on how AMI—Area Median Income—works with affordable housing including chart for current HUD and state income limits.
If you’ve listened to any discussion about affordable housing, invariably you’ve heard the phrase “80% of AMI” (Area Median Income). Rarely does anyone take time to explain how that actually translates to cost. The basic premise is that a household should only spend 30% of their income on housing. By capping the rent or home cost, people in those income brackets should be able to afford the rent or mortgage.
Example: A one bedroom apartment capped at 80% AMI means a single individual can make up to $64,250. 30% of that is $19,275. That breaks down to $1,606.25 a month rent. For a 2 bedroom apartment and a family of 3 that increases to $82,600 or $2,065 a month.
As the cap is increased, the question becomes where is market rate and should government be subsidizing the development? If an average market rate 1 bedroom apartment is $1800-$2000 a month, why would the city subsidize 120% AMI which comes out to $2,409 a month? Could market rates outstrip AMI in the future? Debatable.
| Household Size | 30% AMI | 50% AMI | 80% AMI | 120% AMI | 140% AMI |
|---|---|---|---|---|---|
| 1 | $24,100 | $40,150 | $64,250 | $96,360 | $112,420 |
| 2 | $27,550 | $45,850 | $73,400 | $110,040 | $128,380 |
| 3 | $31,000 | $51,600 | $82,600 | $123,840 | $144,480 |
| 4 | $34,400 | $57,350 | $91,750 | $137,640 | $160,580 |
Maximum rent Hillsborough County, per Florida Housing Finance Corp Multifamily Rental Programs schedule
| Apartment Size | 30% AMI | 50% AMI | 80% AMI | 120% AMI | 140% AMI |
|---|---|---|---|---|---|
| Studio | $602 | $1,003 | $1,606 | $2,409 | $2,810 |
| 1 BR | $645 | $1,075 | $1,720 | $2,580 | $3,010 |
| 2 BR | $774 | $1,290 | $2,064 | $3,096 | $3,612 |
| 3 BR | $894 | $1,491 | $2,386 | $3,579 | $4,175 |
| 4 BR | $998 | $1,663 | $2,662 | $3,993 | $4,658 |
| 5 BR | $1,101 | $1,835 | $2,937 | $4,405 | $5,139 |
Reference links:
- HUD FY2026 income limits, Tampa MSA
- Florida Housing income limits hub
- The 30% affordability rule - What is affordable housing? From National League of Cities
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