AA INTER 3 2006-7

Click to see the website of the Housing Authority of the City of Los Angeles.

Some information on the income/housing cost relationship in Los Angeles

There is often confusion among people about the term "affordable housing," and what it applies to. While affordable housing covers many different income levels and price ranges, what makes housing "affordable" is the ratio of housing costs to household income.

What is affordable housing?
Housing is "affordable" if the people living there pay no more than 30% of their income towards the rent or mortgage. So, what's affordable depends on the income level of a household.

Who is affordable housing for?
Affordable housing is typically aimed at low and moderate income households that are burdened by the high housing costs in Los Angeles County. Low and moderate income households earn between 50 to 120 percent of the area median income (AMI), and often pay half of their income towards housing.

What is area median income?
Each year, the federal government calculates the median income for communities across the country to use as guidelines for federal housing programs. Area median incomes are set according family size. In Los Angeles County, the median income for a family of four is $55,100/year.

How does income compare to rent?
In Los Angeles a decent one-bedroom apartment rents for about $1,200/month. This rent is affordable to someone earning $23/hour ($48,000/yr) or more. An $800/month apartment is affordable to someone earning around $15/hour ($32,000/year). A $1,400/month apartment is affordable to someone earning $27/hour ($56,000/year).

Via Livable Places

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