What challenge does HUD aim to address with the Affordability Index?

The Affordability Index developed by HUD is designed to evaluate how accessible housing is for individuals and families based on their income levels. It specifically measures the relationship between housing costs and income, highlighting whether a particular region's housing market is affordable or poses a financial burden for residents. This index is critical for policymakers, as it helps identify areas where housing costs exceed what families can reasonably afford, ultimately guiding interventions to promote housing affordability.

In this context, the other options do not fully capture the focus of the Affordability Index. While measuring the cost of living, assessing rental prices, and evaluating the impact of housing policies are important aspects of urban development, they are not the primary aim of the Affordability Index. Instead, this tool specifically concentrates on aligning housing costs with income levels to ascertain affordability.