According to the US Department of Housing and Urban Development, “the generally accepted definition of affordability is for a household to pay no more than 30% of its annual income on housing. An estimated 12 million renter and homeowner households now pay more then 50% of their annual incomes for housing, and a family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.” Overall, housing overpayment, including utility and insurance costs, is a more prevalent problem among renter-households than among owner-households. Community programs can support the creation of more affordable housing opportunities.
The U. S. Department of Housing and Urban Development guidelines establish that homeowners are overpaying if their mortgage is 25% or more of household income. Renters are overpaying when rent and utilities are 30% or more of household income. Rents fell for apartments of all sizes starting in 2010, but started increasing annually beginning 2012. Rents increased approximately 10% Q2-2018 over the prior 12 months.