Page 3 - Augusta HCD - Housing for Sale

What Does “Affordable” Mean?

“What is affordable housing, anyway?”

It’s one of the most common questions our department gets—and we totally get why! When you're

building or buying a new home, the word "affordable" can mean different things depending on who

you ask.

For us, it all comes down to income—specifically, the income of the buyer. Here's a quick and fun

breakdown:

Affordable Housing

Income is at or below 80% of the Area Median Income (AMI)

Think: low to moderate-income households

Workforce Housing

Income is between 81% and 120% of AMI

Middle-income earners—like teachers, nurses, and first responders

Market-Rate Housing

Income is above 120% of AMI

Higher-income households

But wait, there's more!

Just because a home costs a certain amount doesn’t automatically mean it’s affordable.

Prices are often based on construction costs and comparable sales in the area, not on what

buyers can actually afford.

The good news? Many buyers—especially low to middle-income—can still qualify for homes

thanks to awesome tools like subsidy programs, mortgage rate buy-downs, and more. These

programs help bridge the gap between what a home costs and what a buyer can afford.