2010-2014 Consolidated Plan - City of Champaign

The upcoming Regional Housing Study will include a Rent Reasonableness Study from the HousingAuthority of Champaign County. The purpose of the Rent Reasonableness Study is to demonstrate whatthe unsubsidized marketplace of rents bears in every census tract within Champaign County. Thisupdated information will provide the City, as well as the regional partners, a more accurate view of therent affordability in the area and this information will be updated throughout the year as an ongoingdatabase for the Housing Authority of Champaign County. The Regional Housing Study will take theinitial results of the Rent Reasonableness Study and determine overall affordability, along with availabilityof units, to determine where gaps exist in the area.Table 2-3: Estimated Qualitative Annual Demand for New Market Rate Rental HousingOne Bedroom Two Bedrooms Three BedroomsMonthly GrossRentUnits ofDemandMonthly GrossRentUnits ofDemandMonthly GrossRentUnits ofDemand$800 130 $1,000 150 $1,300 100$850 110 $1,050 130 $1,400 75$900 100 $1,100 110 $1,500 60$950 90 $1,200 80 $1,600 45$1,000 75 $1,300 50 $1,700 40$1,050 60 $1,400 40 $1,800 35$1,100 50 $1,500 30 $1,900 20$1,200 35 $1,600 25 $2,000 10$1,300 30 $1,700 20 $2,100 0$1,400 20 $1,800 10 $2,200 0$1,500 15 $1,900 0 $2,300 0$1,600 10 $2,000 0 $2,400 0$1,700 0 $2,100 0 $2,500 0$1,800 0 $2,200 0 $2,600 0$1,900 or 0 $2,300 or more 0 $2,700 or more 0moreTOTAL 725 TOTAL 645 TOTAL 385Source: HUD Analysis of the Champaign-Urbana Housing Market, 2003Housing Cost BurdenHousing cost burden is a measure used by theU.S. Census Bureau to identify households thatpay too much of their income toward housingcosts. Any household paying greater than 30%of the household income toward housing costs isconsidered to be housing cost burdened.Traditionally, cost burdening was thought to be acharacteristic of lower income households, but isbeing seen in new development areas as housingprices rise faster than household incomes.According to the 2000 Census, the national rateof homeowner cost burden is 22.0%, with amajority of these households having incomesbelow $50,000 per year. The City’s homeownercost burden rate in 2002 was 15.7%, with 1,786households being housing cost burdened out of acensus sample population of 11,378 households.40%35%30%25%20%15%10%5%0%Figure 2-6: Percent of Homeowners that areHousing Cost Burdened1 2 3 4 5 6 7 8 9 10 11 12 1314 15 16 17Planning AreasRateCitywide RateNational RateSource: U.S. Census, 2000Housing Market Analysis 15