TOWN OF NATICK Housing Production Plan

Section 5: Affordable Housing Inventory
Affordable Housing Defined
The term “affordable housing” can mean different things so we typically refer to affordable
housing by the income one needs to earn to qualify to live in affordable housing. Typically,
housing is considered affordable if a household pays no more than 30% of its income toward
housing costs. Affordable housing can either be subsidized (i.e. a resident pays 30% of their
income for rent and the government subsidizes the rest) or self – pay (i.e. the rent is lower than
market and the tenant pays the lower rent). Examples of subsidized housing are most public
housing units and persons that utilize a Section 8 mobile voucher to pay rent.
The term “low-income” housing generally refers to housing that is affordable to households
earning up to 80% of Area Median Income (AMI”). According to HUD, Natick is located in the
Boston-Cambridge-Quincy Primary Service Area (PSA) for purposes of calculating affordable
income limits, rents and homeownership prices. A household qualifying at 80% of AMI in the
Boston-Cambridge-Quincy PSA could earn no more than $52,000 for a two-person household or
$65,000 for a four-person household. “Very low-income” housing is typically affordable to
qualifying households earning no more than 50% of AMI; that would be $39,150 for a twoperson
household or $48,900 for a four-person household. These two income levels – 50% and
80% of AMI – are used in 40B projects. Table 26 shows the income limits for households in
Natick by household size.
Table 26
2012 INCOME LIMITS FOR AFFORDABLE HOUSING IN NATICK
Area Median Income 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person
30% AMI $20,550 $23,500 $26,450 $29,350 $31,700 $34,050
50% AMI $34,250 $39,150 $44,050 $48,900 $52,850 $56,750
60% AMI $41,100 $46,980 $52,860 $58,680 $63,420 $68,100
80% AMI $45,500 $52,000 $58,500 $65,000 $70,200 $75,400
110% AMI $75,350 $86,130 $96,910 $107,580 $116,270 $124,850
Source: Massachusetts Housing Partnership
Table 27 provides the maximum allowable rents for affordable housing in Natick in 2012, the
latest data available. It shows, for example, that the monthly rent of a one-bedroom unit in
Natick that is affordable to households earning no more than 80% AMI cannot exceed $1,137.
The rents listed below assume that the landlord pays all utilities.
Table 27
2012 MAXIMUM ALLOWABLE RENTS FOR AFFORDABLE HOUSING IN NATICK
# Bedrooms SRO Studio 1 Br 2 Br 3 Br 4 Br
30% Rent $384 $513 $550 $661 $763 $851
50% Rent $642 $856 $917 $1,101 $1,271 $1,418
60% Rent $770 $1,027 $1,101 $1,321 $1,526 $1,702
80% Rent $852 $1,137 $1,218 $1,462 $1,690 $1,885
110% Rent $1,412 $1,883 $2,018 $2,422 $2,798 $3,121
Source: Massachusetts Housing Partnership
44 | P a g e L D S C o n s u l t i n g G r o u p , L L C