5 min read
Portable Tenant Screening Report: A Comprehensive Guide
Discover the benefits and considerations of Portable Tenant Screening Reports (PTSRs), which offer a cost-effective, reusable screening option for tenants and require...
According to the U.S. Department of Housing and Urban Development (HUD), affordable housing is “housing on which the occupant is paying no more than 30% of their gross income for housing costs, including utilities.”
The idea that a tenant’s monthly rent should be less than 30% of their gross monthly income is often seen as the golden rule of budgeting, but in today’s hot market, many spend 30% or more on rent.
Anyone who spends more than 30% of their income on housing is considered to be cost burdened; anyone spending 50% of their income or more on housing is considered to be severely cost burdened. Both of these groups may be eligible for affordable housing programs offered by the government.
However, as Habitat for Humanity of Broward explains, the Area Median Income (AMI) is the metric that determines who can afford to rent an apartment based on where they live and their income. HUD establishes the AMI for every region in the United States. But if someone’s income is too low, they may not be able to afford the part of the rent cost even if it’s subsidized, so they wouldn’t qualify for affordable housing.
As Habitat for Humanity of Broward notes, the “demand for affordable housing exceeds supply not only in urban areas but also in the suburbs,” which is partly why there are a few different methods to promote affordable housing. These include:
There are two additional affordable housing programs to consider: public housing and Section 8.
HUD says, “Public housing was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single-family houses to high rise apartments for elderly families.” There are approximately 970,000 households living in public housing units owned by the government, and this type of housing is limited to low-income families and individuals. Generally, people can stay in public housing as long as they comply with the lease.
Section 8 housing is a government-funded program that helps low-income families and individuals pay for housing. It is sometimes called “subsidized housing” or a “housing choice voucher program.” In this program, a private property owner owns the housing, which must meet specific health and safety requirements.
NEWSLETTER SIGN UP
TheKey is the weekly newsletter for landlords, by landlords.
Subscribe to get tips, news, and hacks for even the most seasoned landlords.
5 min read
Discover the benefits and considerations of Portable Tenant Screening Reports (PTSRs), which offer a cost-effective, reusable screening option for tenants and require...
5 min read
Do you know who’s moving in? Without a thorough tenant screening report, you leave yourself open to financial harm. But when you...
9 min read
TurboTenant leads as the best landlord app of 2024, offering a suite of essential property management tools—from tenant screening to rent collection—designed...
5 min read
Discover the benefits and considerations of Portable Tenant Screening Reports (PTSRs), which offer a cost-effective, reusable screening option for tenants and require...
5 min read
Do you know who’s moving in? Without a thorough tenant screening report, you leave yourself open to financial harm. But when you...
9 min read
TurboTenant leads as the best landlord app of 2024, offering a suite of essential property management tools—from tenant screening to rent collection—designed...
Join the 550,000+ independent landlords who rely on TurboTenant to create welcoming rental experiences.
No tricks or trials to worry about. So what’s the harm? Try it today!