Addressing the growing shortage of quality affordable housing for America’s workers is a top industry priority. An estimated shortfall of three million apartments exists nationwide. This number is only expected to worsen as the number of renter households increases. In many metro areas, regulatory barriers and compliance costs, construction costs and limited financing prohibit the private sector from constructing, rehabilitating and operating apartments at rents in line with workers’ earnings.
How Subsidized Rents are Set
- A 2015 NAA/NMHC briefing outlines the purposes and methodologies for Area Media Income Limits and Fair Market Rents. Both serve as the benchmarks for HUD subsidy programs that set rent payments for assisted residents.