1. What is Area Median Income (AMI)?

The Area Median Income (AMI) is the midpoint of a region's income distribution, calculated annually by HUD. It's used to determine eligibility for affordable housing programs and other assistance based on income limits.

2. How is AMI Calculated?

The calculator uses the following formula:

Where:

• Household Income — Total annual income for all household members
• Area Median Income — Median income for the geographic area (from HUD data)

Explanation: The percentage shows how a household's income compares to the area median, with adjustments for household size.

3. Importance of AMI Calculation

Details: AMI determines eligibility for affordable housing, rental assistance, and other programs. It helps standardize income limits across different regions.

4. Using the Calculator

Tips: Enter your total household income, the current AMI for your area (available from HUD), and household size. The calculator will show your income as a percentage of AMI.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my area's median income?
A: HUD publishes AMI figures annually for all metropolitan areas and counties. Check your local housing authority website.

Q2: How does household size affect AMI calculations?
A: Income limits are adjusted based on household size. Larger households have higher income limits for the same AMI percentage.

Q3: What's the difference between AMI and national median income?
A: AMI is specific to a geographic area, while national median looks at the whole country. AMI varies significantly between high and low cost areas.

Q4: How often is AMI updated?
A: HUD typically updates AMI figures annually to reflect changes in local income levels.

Q5: What programs use AMI calculations?
A: Section 8 housing, LIHTC properties, HOME program, and other affordable housing initiatives use AMI to determine eligibility.