What does “affordable ” housing mean?

HousingWorks RI provides the following definition for “affordable ” housing:

You live in affordable housing if you pay no more than 30 percent of your gross household income on rent or mortgage payments. This percentage meets the federal guideline for “affordability .” Some states include the cost of utilities in that 30 percent calculation; RI does not.

Affordable Housing - Official Rhode Island definition

“Affordable housing” means residential housing that has a sales price or rental amount that is within the means of a household that is moderate income or less.

In the case of dwelling units for sale, housing that is affordable means housing in which principal, interest, taxes, which may be adjusted by state and local programs for property tax relief, and insurance constitute no more than thirty percent (30%) of the gross household income for a household with less than one hundred and twenty percent (120%) of area median income, adjusted for family size.

In the case of dwelling units for rent, housing that is affordable means housing for which the rent, heat, and utilities other than telephone constitute no more than thirty percent (30%) of the gross annual household income for a household with eighty percent (80%) or less of area median income, adjusted for family size.

Affordable housing shall include all types of year-round housing, including, but not limited to, manufactured housing, housing originally constructed for workers and their families, accessory dwelling units, housing accepting rental vouchers and/or tenant-based certificates under Section 8 of the United States Housing Act of 1937, as amended, and assisted living housing, where the sales or rental amount of such housing, adjusted for any federal, state, or municipal government subsidy, is less than or equal to thirty percent (30%) of the gross household income of the low and/or moderate income occupants of the housing. From Section 42-128-8.1 of the General Laws in Chapter 42-128 entitled “Rhode Island Housing Resources Act of 1998,” amended June 30, 2005.

Basically, if your gross household income, adjusted for family size, is less than a designated percentage of area medium income, you can qualify to rent or purchase units that are designated as “affordable.” These units are subsided by the Federal government which results in lower than market-rate rents and lower than market-rate sale prices. To determine whether you qualify for “affordable” housing, please contact the Smith Hill CDC, Rhode Island Housing’s Homeownership Page, or another certified mortgage provider.

For more information about “affordable” housing in Rhode Island please visit: