Inclusionary Housing Income Calculator

What Is Inclusionary Housing?

Inclusionary housing is a policy that requires or encourages developers to include affordable units in new housing projects. These units are reserved for households earning below a certain percentage of the Area Median Income.

In short, it helps ensure that teachers, healthcare workers, retail employees, and other moderate or lower-income households can live in communities that might otherwise be too expensive.

Each unit is tied to an income band such as:

• 30% of AMI (Extremely Low-Income)
• 50% of AMI (Very Low-Income)
• 60% of AMI (Low-Income)
• 80% of AMI (Common Standard)
• 120% of AMI (Moderate-Income)

The calculator helps you compare your income to these limits.

What Is AMI (Area Median Income)?

Area Median Income (AMI) is the midpoint income for a specific geographic area. It is calculated each year and varies by:

• State
• County
• Household size

Half of households earn more than the AMI. Half earn less.

Affordable housing programs use AMI to set income limits. For example:

• If AMI in your area is $100,000
• And the unit is restricted to 80% of AMI
• Then the income limit is $80,000

If your household earns less than $80,000, you may qualify.

The calculator uses a state-based estimate of AMI and adjusts it based on household size.

How the Inclusionary Housing Income Calculator Works

The calculator uses five main inputs:

1. Household Size

You enter the total number of people in your household.

This includes:

• You
• Your spouse or partner
• Children
• Any dependents

Household size matters because AMI increases as household size increases.

For example:

• A single-person household has a lower AMI limit
• A four-person household has a higher AMI limit

The calculator adjusts income limits accordingly.

2. State Selection

Each state has a multiplier applied to a base national AMI estimate.

For example:

• California uses a higher multiplier
• Mississippi uses a lower multiplier

This reflects the general cost differences across states.

The tool uses a base national AMI for a four-person household and then adjusts it using the state multiplier.

This gives you an estimated AMI for your location.

3. County or City (Reference Only)

You can enter your county or city for reference. This does not change the calculation.

Why?

Because real AMI varies by county, and this calculator uses state-level estimates. The county field helps you keep track of the specific area you are checking.

For official numbers, always verify with the housing provider or HUD.

4. Total Annual Gross Income

This is your total income before taxes.

Include:

• Salary
• Wages
• Self-employment income
• Social Security
• Child support
• Any other income sources

Enter the total for all adults in the household.

The calculator will compare this number to the income limit.

5. Target Unit Income Band

You select the income restriction of the housing unit.

Options include:

• Up to 30% of AMI
• Up to 50% of AMI
• Up to 60% of AMI
• Up to 80% of AMI
• Up to 120% of AMI

Each band represents the maximum income allowed.

For example:

If estimated AMI is $90,000

• 60% band limit = $54,000
• 80% band limit = $72,000

Your income must be below that limit to qualify.

Step-by-Step: What Happens After You Click “Check Eligibility”

Once you press Check Eligibility, the calculator performs four main steps.

Step 1: Validates Your Input

It checks that:

• Income is greater than zero
• Household size is at least one

If something is missing, it prompts you to correct it.

Step 2: Estimates AMI

The tool:

• Starts with a national base AMI for a 4-person household
• Applies a state multiplier
• Adjusts for household size

Household size adjustments follow a simple scaling model:

• 1 person = lower percentage
• 2 people = slightly higher
• 3 people = higher
• 4 people = baseline
• More than 4 = incremental increases

This produces an estimated AMI.

Step 3: Calculates Your Income Limit

The formula is simple:

Estimated AMI × Income Band Percentage

Example:

• Estimated AMI = $95,000
• Income Band = 80%

Income Limit = $76,000

Your income is then compared to that number.

Step 4: Determines Eligibility Status

The calculator shows one of three results:

Eligible

Your income is within the limit.

Income Slightly High

Your income is very close to the limit (within 5%).
Small changes could affect eligibility.

Ineligible

Your income exceeds the allowed limit.

It also shows:

• Your income vs. the limit
• Estimated AMI
• Maximum affordable rent
• Recommended next steps

What Is Maximum Affordable Rent?

The calculator estimates affordable rent using the 30% rule.

This rule says:

You should spend no more than 30% of gross monthly income on housing.

Formula:

Annual Income ÷ 12 × 30%

Example:

Income = $60,000
Monthly income = $5,000
30% = $1,500

Maximum affordable rent = $1,500 per month

This helps you understand what rent level fits your income.

Why This Calculator Is Useful

This tool helps you:

• Quickly check income eligibility
• Compare income bands
• Estimate affordable rent
• Avoid applying to units you likely do not qualify for
• Prepare before contacting housing providers

It saves time and reduces uncertainty.

Instead of guessing, you get a data-based estimate.

Important Disclaimer

This calculator provides estimates only.

It does not guarantee eligibility.

Real income limits are:

• Set annually
• Based on county-level AMI
• Determined by HUD
• Verified by housing providers

Final eligibility decisions are made by the property owner or program administrator after reviewing documentation.

Always confirm with the housing provider before applying.

Example Scenario

Let’s say:

• Household size: 3
• State: Illinois
• Income: $58,000
• Income band: 60%

The calculator estimates AMI for that state and household size.
It calculates 60% of that AMI.

If the limit is $62,000, you are eligible.
If the limit is $54,000, you are not.

This clarity helps you decide your next step.

Who Should Use This Calculator?

This tool is ideal for:

• Renters exploring affordable housing
• First-time applicants
• Housing counselors
• Property managers doing preliminary screening
• Anyone unsure about income qualification

It is especially helpful before submitting formal documents.

What to Do After Checking Eligibility

If you are eligible:

1. Contact the housing provider.
2. Ask for the official income limit for your county.
3. Prepare income documentation.
4. Start the application process.

If you are slightly above the limit:

• Ask if adjusted income rules apply.
• Confirm the exact AMI for your county.

If you are ineligible:

• Look for higher income band units.
• Explore 120% AMI programs.
• Check local housing assistance options.