Income-Restricted Rent Calculator

Formula

The formula to calculate the maximum allowable rent for income-restricted housing is:

\[ \text{Max Rent} = \left( \text{Household Income} \times \left( \frac{\text{AMI}}{100} \right) \right) \times \left( \frac{\text{Rent Percentage}}{100} \right) \]

Where:

$\text{Max Rent}$ is the maximum allowable rent based on income restrictions ($)
$\text{Household Income}$ is the total income of the household ($)
$\text{AMI}$ is the Area Median Income percentage (%) relative to the region
$\text{Rent Percentage}$ is the percentage of household income that can be allocated for rent (%)

What is Income-Restricted Rent?

Income-restricted rent refers to the maximum rent that can be charged for housing based on the income of the household and the Area Median Income (AMI) for the region. This type of rent is often used in affordable housing programs to ensure that housing remains affordable for low- to moderate-income families.

Example Calculation 1

Let's assume the following values:

Household Income = $50,000
AMI Percentage = 80%
Rent Percentage = 30%

Using the formula:

\[ \text{Max Rent} = \left( 50000 \times \left( \frac{80}{100} \right) \right) \times \left( \frac{30}{100} \right) = 12000 \text{ dollars} \]

The maximum allowable rent is $12,000.

Example Calculation 2

Let's assume the following values:

Household Income = $75,000
AMI Percentage = 60%
Rent Percentage = 25%

Using the formula:

\[ \text{Max Rent} = \left( 75000 \times \left( \frac{60}{100} \right) \right) \times \left( \frac{25}{100} \right) = 11250 \text{ dollars} \]

The maximum allowable rent is $11,250.