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LL Tip: Affordable Housing vs. Low Income Housing by Eric (MN) on December 30, 2010 @23:20

                              
Affordable Housing vs. Low Income Housing. While these two terms may seem to have the same meaning, they are different. Affordable housing would be for tenants that have three to four times the rent amount in income. The rent they are paying is affordable to them.

Low-income housing would be people that barely have two times the rent in income. Your apartment is not even considered ‘Affordable’ to them, but that is all they can afford.

The Federal government recommends that a family spend no more than 30% of their income in rent. If they are paying more than 30%, you will likely have trouble collecting the rent, or it will be a chore every month.

Know what your market is, and then target your market. Be sure you are on your way to becoming an affordable housing market, and away from a low-income market.

The low income housing market people will cause more wear and tear, and will 'eat' your building bit by bit.

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Re: LL Tip: Affordable Housing vs. Low Income Housing by JD-NY on December 31, 2010 @05:03 [ Reply ]
I was under the impression that low income housing was housing that had an upper income restriction(set or incentivized by the gov of course), or public housing(what used to be referred to as the "projects".
Re: LL Tip: Affordable Housing vs. Low Income Housing by Anna Mouse on December 31, 2010 @13:05 [ Reply ]
I think it is an important point you are making. Most importantly knowing your market. Who wants to live in your rental and what is the average income of that person. I am new to Landlording but because I know something about marketing and have been in business before I understand the nature of people. I have asked that the rent be no more than 40% of the income and as it turns out both tenants income have exceeded that amount. Also I started out with a much lower rent than the rest of the rentals in the area. There were a few reasons for doing this most of them faulty in that you don't charge someone less money and hope they will take care of things on the property.

Either way starting out with a much lower rent than what the comps were renting allowed us to get our feet wet in the finding a good tenant process. It also allowed us to find people who could easily pay the rent. Again that means the rent amount is easily no more than 40% of their income and less if you add any additional incomes. We have lost potential rental income but overall, and most importantly, the rent is paid and they won't trash our house because it would mess up their future.

People who are actually trying to build a future come at all income levels. Those people who understand the concept of building a future would not live in a place that fits what they want their lifstyle to be. They are not as concerned with immmediate gratification because they understand the gratification will come later.

Re: LL Tip: Affordable Housing vs. Low Income Housing by Tanayagkia Rochelle Webster (Leavenworth Kansas) on April 26, 2018 @13:46 [ Reply ]

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