What is moderate income housing?

Moderate Income Housing is defined in Utah Code as “housing occupied or reserved for occupancy by households with a grow household income equal to or less than 80% of the median gross income for households of the same size in the county in which the city is located.” According to the U.S. Department of Housing and Urban development (HUD), the 2020 median family income in Salt Lake County was $87,900. A low (80% of median) income household earned $70,300. Therefore, for the purposes of this plan, moderate income housing is defined as those housing units that were affordable to households that earn $70,300 or less annually. HUD defines housing as affordable when it consumes less than 30% of a household’s income. If families are required to pay more than 30% of their income for housing, they are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care. Thus, the generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing (including housing related expenses such as utilities, insurance, taxes, etc.) HUD goes further to break down affordability into subcategories that better define the income levels that are being targeted for their programs. The subcategories are listed below:

  • Extremely low income: Below 30% of AMI (below $26,370)
  • Very low income: Below 50% of AMI (below $43,950)
  • Low income: Below 80% AMI ($70,300)
  • Moderate income: Between 80% and 120% of AMI ($70,300 - $105,480)

Show All Answers

1. What is moderate income housing?
2. How will South Salt Lake’s Moderate Income Housing Plan address housing need?
3. How is the State supporting this process?
4. What is South Salt Lake’s Current Housing Situation?