•Index = Industry's annual wage / Annual income needed to afford a 2-BR FMR.
Use to compare industries with each other in terms of affordability of a two-bedroom apartment at
the HUD FMR. A value of 1 indicates the wage earner would pay exactly 30% of income for rent. Values
below 1 indicate that the 2-bedroom FMR is unaffordable at that wage level; values above 1 indicate
that the apartment would be affordable. Results include indexes and maximum affordable rent for
average-paid workers in each industry. Maximum affordable rent is a dollar amount equaling 30%
of income.
•Shows the percentage of income that would be spent, or "cost burden," for a 2-bedroom apartment at FMR by
someone earning mean wage for each industry. Values of 30% or less mean that a 2-bedroom apartment at FMR would
be affordable at that wage level. Values over 30% indicate that the apartment would be affordable. Also
shows maximum affordable rent, which is a dollar amount equaling 30% of income.
•Index = Industry's annual wage / Annual income needed to afford a median-priced single family home.
Use to compare industries with each other in terms of affordability of a median-priced single family home.
A value of 1 indicates the wage earner would pay exactly 25% of income for mortgage costs. Values below 1 indicate
that the median-priced home is unaffordable at that wage level; values above 1 indicate that the home would be
affordable. Results include indexes and maximum affordable single-family sales price for average-paid workers
for each industry. The maximum affordable single-family sales price reflects the price that would require 25% of
income to pay the mortgage, assuming a 5% down payment.
•Shows the percentage of income that would be spent that would be spent on mortgage costs for a median-priced
single family home by someone earning mean wage for each industry. Unlike with apartment rents, which are
considered affordable at 30% of income, we set 25% as the affordable percentage of income for mortgage costs.
This is because homeowners must pay other housing costs in addition to the mortgage, such as insurance, utilities
and property taxes. Therefore, a value of 25% or less indicates that the house would be affordable at that wage
level. A value over 25% indicates that the house would not affordable.
Also shows the maximum affordable single-family sales price, which reflects the price that would require 25% of
income to pay the mortgage (assuming a 5% down payment).
