•Index = Occupation's annual wage / Annual income needed to afford a 2-BR FMR
Use to compare occupations 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 entry-level, median-paid, and experienced workers for
each occupation. 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 entry-level, median, and experienced-level wages for each occupation. 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 = Occupation's annual wage / Annual income needed to afford a median-priced single family home
Use to compare occupations 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 for entry-level, median-paid,
and experienced workers for each occupation. 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 entry-level, median, and experienced-level wages for each occupation.
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).
