AMI Rent Calculator

Formula

The formula to calculate the AMI Rent (R_ami) is:

\[ R_{ami} = AMI \times \frac{R}{100} \]

Where:

$R_{ami}$ is the AMI Rent ($)
$AMI$ is the area median income ($)
$R\%$ is the percentage of AMI as rent (%)

What is AMI Rent?

AMI Rent refers to the rent amount calculated based on a percentage of the Area Median Income (AMI). This method helps determine affordable rent prices by considering the local income levels. The AMI Rent ensures that rent remains within a reasonable range of the median income, promoting affordability and preventing excessive rent burdens.

Example Calculation

Let's assume the following values:

Area Median Income (AMI) = $60,000
Percentage of AMI as Rent (R%) = 30%

Using the formula to calculate the AMI Rent:

\[ R_{ami} = 60000 \times \frac{30}{100} = 60000 \times 0.30 = 18000 \]

The AMI Rent is $18,000 per year.