How does HUD define “affordable housing”?

In the context of HUD, "affordable housing" is defined as housing costs that do not exceed 30% of a household's income. This measure is widely used to determine what is considered affordable for individuals and families, as spending more than this percentage can often lead to financial strain and limit the ability to afford other essential expenses like food, healthcare, and transportation.

This threshold is rooted in research and policy, showing that households paying more than 30% of their income on housing are at a higher risk of facing housing instability and financial distress. It serves as a benchmark to identify needs for housing programs and assistance targeted at maintaining affordability and ensuring access to safe, decent housing for low- and moderate-income families.

While upfront costs, having no rent, or availability across all neighborhoods are important factors in discussions about housing, they do not accurately define what makes housing affordable as per HUD's standards. The focus on a percentage of income specifically addresses the broader goal of financial sustainability for households.