A house is affordable when the property residents are paying not more than 30% of the total income on household expenditures. Individuals earning $1000 should not pay more than 300 dollars on housing expenses. You can achieve such a percentage by increasing the monthly income of the population, allowing individuals to pay exorbitant rental charges. Another strategy to achieve this is to reduce the cost of housing such that individuals from low-income groups can pay the rent without any hassle, says Maxwell Drever.
Housing subsidies are a considerable solution for minimizing the cost of living
Housing subsidies help the workforce population acquire a decent home with the help of additional funds that lowers the cost of living. In the absence of housing subsidies, people from low-income households pay a substantial portion of their income on rent. Housing subsidies allow the population to pay the rent based on their income. Many low-income families acquire housing subsidies according to their requirements.
- Public housing
Such dwelling units come under public agencies or the local housing authority that charges a substantial amount as rent, based on the household’s income.
- Housing choice voucher
Housing choice vouchers pertain to a program allowing people from poor backgrounds to live in a quality house in society. Such a dwelling is made available to them through the private market. Under this subsidy program, the household pays the rent according to their capacity, which comprises not more than 30% of the total money income.
Once again, the public agency produces the remaining amount to the landlord according to the market rate. However, individuals with low money income must wait for their turn to receive the voucher. Several families are selected from the waiting list and fulfill the responsibility of choosing a rental unit except for the coupon as a means of payment.
- Income eligible housing
House developers establish property or rehabilitees the same to receive subsidies from the government. Such contributions are acquired for low rent, making homes affordable to low-income families. House developers receive the funds in the form of the tax credit, which allocates federal taxes, handling the construction and rehabilitation of such homes.
- Workforce housing
Many individuals in the US are working and earning a substantial amount of income yet cannot pay housing rents due to exorbitant housing wages. The government provides financial assistance, so such moderate-income households allow them to spend as much as they can afford. Under such circumstances, these families become eligible for housing subsidies. In the case of workforce housing, many developers established additional units, thereby minimizing the rent by 10% for such families, as asserted by Maxwell Drever.
In addition to the above types of affordable housing units, supportive and transitional housing also play a crucial role in minimizing the expenditure to live in a decent house. Supportive housing offers affordable units to the residents by helping people who are homeless and disabled. On the other hand, transitional housing provides financial assistance to individuals who are victims of substance abuse and domestic violence.