What does “affordable housing” mean?
We are focused on housing for locals.
Here’s an attempt at backing into the question of “What’s Affordable?”
2022 Area Median Income “AMI” for the Methow Valley is $63,200 for a household of 2.
Following the HUD standard “Rule of 30”, here’s the maximum recommended housing expense by AMI:
| Houshold size | 50% AMI | 80% AMI | 100% AMI | 125% AMI | 150% AMI | 175% AMI | 200% AMI |
|---|---|---|---|---|---|---|---|
| 1 | $671.50 | $1,074.40 | $1,343.00 | $1,678.75 | $2,148.80 | $2,350.25 | $2,686.00 |
| 2 | $790.00 | $1,264.00 | $1,580.00 | $1,975.00 | $2,528.00 | $2,765.00 | $3,160.00 |
| 3 | $888.75 | $1,422.00 | $1,777.50 | $2,221.88 | $2,844.00 | $3,110.63 | $3,555.00 |
| 4 | $987.50 | $1,580.00 | $1,975.00 | $2,468.75 | $3,160.00 | $3,456.25 | $3,950.00 |
The median home sale price in 2022 was $640,000.
Home prices have outpaced wage increases 57 to 1.
Here’s how house price and mortgage effect affordability (assuming 6.2%, 30 year mortgage).
Area Median Income (for a household of two) has $198,000 of buying power.
| Mortgage | $198,000.00 | $300,000.00 | $400,000.00 | $500,000.00 | $600,000.00 | $640,000.00 |
|---|---|---|---|---|---|---|
| Payment | $1,592.69 | $2,302.41 | $2,998.21 | $3,694.01 | $4,389.81 | $4,668.13 |
And here’s how Median Income brackets translate to income, by household
at 100% AMI: 1/2 of all residents make less, 1/2 make more
| Houshold size | 50% AMI | 80% AMI | 100% AMI | 125% AMI | 150% AMI | 175% AMI | 200% AMI |
|---|---|---|---|---|---|---|---|
| 1 | $27,650.00 | $44,240.00 | $55,300.00 | $69,125.00 | $88,480.00 | $96,775.00 | $110,600.00 |
| 2 | $31,600.00 | $50,560.00 | $63,200.00 | $79,000.00 | $101,120.00 | $110,600.00 | $126,400.00 |
| 3 | $35,550.00 | $56,880.00 | $71,100.00 | $88,875.00 | $113,760.00 | $124,425.00 | $142,200.00 |
| 4 | $39,500.00 | $63,200.00 | $79,000.00 | $98,750.00 | $126,400.00 | $138,250.00 | $158,000.00 |