Affordable Housing Definitions, Data, and Maps

More Information - New Mexico Affordable Housing Act

The New Mexico Mortgage Finance Authority (MFA) publishes additional information regarding the Affordable Housing Act, including links to sample plans and ordinances: https://housingnm.org/resources/affordable-housing-act  

Definitions

Housing is Affordable when a households’ housing expenses (rent/mortgage and utility costs) are no more than 30% of their monthly income.

Census tracts are small, relatively permanent statistical subdivisions of a county or city. Census tracts generally have a population size between 1,200 and 8,000 people, with an optimum size of 4,000 people. A census tract usually covers a contiguous area and census tract boundaries generally follow visible and identifiable features.

Census block groups are statistical divisions of census tracts and are generally defined to contain between 600 and 3,000 people. A block group consists of clusters of blocks within the same census tract. 

Cost burdened households have monthly housing costs (rent/mortgage and utility costs) exceeding 30% of monthly income.

Family includes related individuals living in the same household.

Household includes all people living in a housing unit. Members of a household can be related (see family) or unrelated.

Overcrowding occurs when there is more than one person per one room in the housing unit.

Severe overcrowding occurs when there is more than one and one-half (1.5) persons per one room in the housing unit.

Severely cost-burdened households have monthly housing costs (rent/mortgage and utility costs) exceeding 50% of monthly income.

Note: The following sources were used for the definitions:

https://www.huduser.gov/portal/datasets/cp/CHAS/bg_chas.html 

https://www.census.gov/programs-surveys/geography/about/glossary.html#par_textimage_4

Additional Information on Income Data

The federal government collects and uses data about income in several different ways. For example:

•    Median and Average Income - The U.S. Census Bureau collects and publishes data related to median and average income for families and households. This data is published for various geographies including census tracts, census block groups, cities, and zip code tabulation areas. Median/Average Household Income is often less than Median/Average Family Income because households can be as small as one person living alone, whereas the minimum family size is at least two related persons living together. Additionally, families tend to have more people who are earning an income, as compared to households, which may have only one person (who may be elderly and on a fixed-income).

•    Area Median Income and Income Limits - The Department of Housing & Urban Development (HUD) uses income data collected by the U.S. Census Bureau to estimate Median Family Income (MFI) for states, non-metropolitan counties and metropolitan statistical areas (a combination of counties). HUD then uses the MFI to calculate income limits for its programs, such as the Community Development Block Grant Program. These income limits are calculated as percentages of MFI and include adjustments for families of different sizes. The adjusted income limits are commonly referred to as Area Median Income (AMI).

Example: The median household income for Rio Rancho is $66,733. However, the median family income for the Rio Rancho is $75,504. HUD designates Rio Rancho as part of the Albuquerque, NM MSA, which contains the following areas: Bernalillo County, NM; Sandoval County, NM; Torrance County, NM; and Valencia County, NM. Therefore, the median family income for the MSA has been calculated as $77,100.