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Affordable housing – what does that really mean?

  • posted by Jessica Burson
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Affordable housing – what does that really mean?

Do you think it’s affordable to spend more than 30% of your gross income on your housing? Neither does HUD. Which is why HUD defines affordable housing as not spending more than 30% of gross income on housing.

Mortgage lenders recommend about 30% as a cap for people looking to buy a home for the same reason. They want to be sure the people they’re loaning to can afford to pay back their mortgage and not go into foreclosure, which could be detrimental for business, homeowners and the local economy.

It only stands to reason that all people, whether renters or homeowners, should be able to afford their housing as well as other necessities.

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