Page 3 - Augusta HCD - Housing for Sale

What Does 'Affordable'

Mean?

One of the biggest questions our department answers on a regular basis is
What is affordable housing? When working to construct or sell a new home, our
definition stems from the income of the BUYER.

Affordable - Buyer's income is at or below 80% of Area Median Income (Low to Moderate Income)

Workforce - Buyer's income is between 81-120% of Area Median Income (Middle Income)

Market Rate - Buyer's income exceeds 120% of Area Median Income (High Income)

Typically, a home's sales price is calculated based on construction costs
which may or may not include the appraisal value based on recent home
sales of similar type and size. It is not indicative of affordability. Some low,
moderate, and middle-income buyers can purchase higher-priced homes
with the assistance of subsidy programs, interest rate buy-downs, and other
factors determined when qualifying for a mortgage.