Income-Restricted Rent Calculator

Calculate Maximum Allowable Rent





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:

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:

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:

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.