How Affordable Housing is Helping Low Income Renters
Rent Assistance, Public Housing, and Affordable Housing are Making a Positive and Impactful Change
Since the onset of the COVID-19 pandemic, economies have struggled to stabilize, businesses have found it challenging to bounce back from lockdowns, and thousands of people have been unable to get back onto their feet. Despite economical difficulties, rent in the US has risen exponentially over the last year. The problem is that with increases in rent and greater reliance on credit, people have not received increases in their salaries and are unable to cope with the rising costs.
The following guide takes a closer look at affordable housing and the opportunities low income developments provide for tenants during difficult and uncertain economic times.
Why People Need Affordable Housing
An average of 4 out of 10 low income households in the US are currently paying more than half of their salaries on their rent. This year alone, around 5.2 million people rely on federal rental assistance programs to afford decent housing. A large portion of individuals have also ended up homeless and are simply unable to afford rent or qualify for rent assistance.
Along with rising costs in rent and the risk of more people ending up homeless, there is also a shortage of affordable homes and apartments for qualifying individuals to rent. Current Section 8 and public housing programs have people on waiting lists for years making it harder to stay above water financially.
Reasons Renters are Hesitant about Affordable Apartments
Low cost or affordable apartments to rent have always been stereotyped because of the connection to poverty, crime, and unsafe neighborhoods. Many landlords ran public housing programs in the past which resulted in dilapidated homes, the absence of maintenance, and the failure to put the needs of tenants first. Today, many private developers have worked in conjunction with the federal government to make low cost rentals and subsidized housing available to more individuals and families. This includes renovated apartments, affordable developments in attractive neighborhoods, and flexible subsidized solutions to make more rental options available to low to mid income earners.
The Benefits of Affordable Housing
Affordability means security. It means having the extra cash to put away from a rainy day and to save towards the stability and the things that you really want in life. Despite the stigma surrounding affordable housing programs, with perseverance, you can find a home that is secure, attractive, and economical.
There are also programs in which you can choose an apartment to rent that falls within your income bracket. When you find a low cost apartment, it becomes easier to manage your finances and save for a future home. You will also stop feeling stressed about losing the roof over your head.
A large percentage of American households are cost burdened but if we look at how much they are spending on their monthly rent, it is no wonder that more people find themselves struggling financially.
Spending over 30% of your earnings on your rent is not affordable. Considering your income and your expenses including any debts you may be in the process of settling, a high rent leaves you with very little especially for savings or the cost of health insurance.
Low income housing also doesn’t have to be a long term option to save money and manage your debt. You can rent for a year or until you’re in a stable financial position. This can help you find the apartment to suit your current and future needs.
Finding the Right Affordable Apartment to Rent
Finding the right affordable housing plan means that you need to understand whether you qualify for low income housing? Once you understand whether your income bracket falls within the income limits of the Urban Housing Development program, you can better plan your finances and your options for a more affordable home.