Understanding Housing Lingo: Understanding Area Median Income “AMI” 

By Matthew Havniear, Housing Recovery Director 

Do you need help understanding the technical terms and lingo used in the housing services sector? If yes, then this exciting blog can help simplify the confusing world of Housing Programs. Our goal is to make housing knowledge more accessible to everyone. As part of this effort, we are starting a Housing Information Series, in which we will provide you with easy-to-understand explanations of various housing terms and concepts so that you can make informed decisions.

In this series, we will begin with a concept affecting many aspects of housing affordability: Area Median Income, which is frequently called “AMI” for short. 

Understanding the Area Median Income “AMI”:

The Area Median Income, also known as AMI for short, is a measurement of the midpoint or median of a region’s income distribution. The Area Median Income (AMI) is defined by the U.S. Department of Housing and Urban Development (HUD) for different areas, including Jackson County. HUD reviews income information from a community to calculate the middle value, known as the median. This means the AMI number that HUD comes up with is the amount of money where half the families in the community make more than this amount, and the other half make less. This measure is important because it is used to determine if a family is eligible to receive housing assistance in many housing assistance programs. 

Why Does AMI Matter?

To qualify for housing assistance programs, you might need to meet a specific income level or percentage of AMI based on the median income in your area. HUD uses the income levels to classify households into different income brackets based on the Area Median Income (AMI) and family size. Households earning 80% of the AMI are considered low-income, those at 50% are very low-income, and families at 30% of the AMI fall into the extremely low-income group. Knowing where your family stands in relation to the average income can help you determine what housing support you may be eligible for.

Example: A Look at a Four-Person Family in Jackson County

Let’s use a family of four as an example. A four-person family means the total number of people who make up that family equals four. HUD has determined that the median income in Jackson County for a family of four is $86,700 for 2024. Many housing assistance programs require a family to be at 80% of the area median income level or less. In Jackson County, 80% of the Area Median Income for a family of four is $64,700. This is also the income limit that HUD defines as a “Low-income household.”

The $64,700 income limit may seem off if you compare it to 80% of $86,700. However, there’s a good reason for this. When determining the area median income, HUD also considers other factors, such as the high cost of living and the number of families with very low incomes. This is to ensure that the income limits set are more realistic to the area, given all the factors. In Jackson County, the high cost of living means that HUD lowers the 80% AMI limit further by about 6% to arrive at the $64,700 figure. This is to adjust for the high cost of living and make the income limits more suitable to the area.

Links to Resources

Finding the right information can sometimes be challenging, but we’ve got you covered. Below are some helpful links to guide you through understanding AMI, applying for housing assistance programs, and more:
 

• Local Housing Authority Directory: Connect with your local housing authority for personalized assistance and program applications. https://hajc.net/ 
  
  

• Community Action Agency ACCESS: Connect with Housing Stabilization Case Managers to learn which programs your family may be eligible for. https://accesshelps.org/ 
  
  

• JCC LTRG Partners Page: For a list of partners in the area who play important roles in our community’s recovery and support efforts, visit https://jccltrg.org/partners/ 
  
  

• HUD’s Official Website: Dive deep into the world of housing assistance, explore various programs, and understand your eligibility at https://www.hud.gov/  
  
  

By exploring these links, you take important steps towards securing affordable housing. 
 

What’s Next?

This edition of the Housing Information Series provided an introduction to AMI and what it means for families who need to access housing programs. In our upcoming blog, we’ll explore more housing terms and programs that can benefit you, like “Low-Income Housing,” “Tax Credit Programs,” and mo