As Area Median Income rises nearly 10%, "low-income" 80% AMI reaches $100K for most household sizes. NYC adds 20% AMI as Extremely Low Income option.

Last week, the updated 2024 New York City Area Median Income (AMI) surfaced on the website (link) of the city Department of Housing Preservation and Development (HPD), with an astounding rise of nearly 10% over 2023.

So 100% of AMI for a four-person household is now $155,300, up from $141,200 in 2023. (It was $83,900 in 2014!) 

The 2023 figure was a 5.7% increase over $133,400 in 2022, which represented an 11.8% increase over $119,300 in 2021, as I wrote in April 2022.

The corresponding income bands for 2023 are below.

"Low-income" conundrum

That also means that many households at 80% of AMI, the threshold considered "low-income," can now earn six figures: the income limits are $86,960 for one person, $99,940 for two people, $111,840 for three people, and $124,240 for four people.

Keep in mind that AMI depends on better-off suburban counties and, especially, the High Housing Cost Adjustment (HHCA), which ANHD, the Association for Neighborhood & Housing Development, calls "a convoluted step" in the calculations of the federal Department of Housing and Urban Development.

Notably, this year HPD has added a category of 20% AMI, since that Extremely Low Income sub-category contains a large number of New Yorkers.

Changes coming?

Earlier this month, Rep. Yvette Clarke (D-Brooklyn), with colleagues, introduced the Affordable Housing and Area Median Income Fairness Act of 2024, which directs "HUD to conduct an assessment of more inclusive calculation methods of the AMI, as well as to submit a report to Congress detailing its post-assessment findings and recommendations for reforming or eliminating the use of AMI. Additionally, the legislation authorizes $5 billion to various housing programs nationwide to combat these issues."

The legislation, co-sponsored by Sen. Kirsten Gillibrand (D-NY) requires "an analysis and assessment of the effects that high housing cost adjustments have had on income limits and rent prices," and "an updated assessment of the potential impacts to affordable housing, particularly on income limits and rent prices, of calculating area median income on a ZIP Code-level basis and using other localized methodologies."

It also requires an assessment of the impacts that Westchester and Rockland Counties have on New York City's AMI and affordable rents.

What about the rents?

For some reason, HPD hasn't yet updated the section regarding rents but rather lists 2023 rents: a single person at 80% AMI would pay $1,696 for a studio, while a 2-bedroom would go for $2,542. 

With the new AMI figures, those allowable rents should grow commensurately, but in reality, some of the middle-income rents--a $2,756 studio at 130% of AMI!--will be lowered to ensure that tenants will sign leases, as in the experience of Atlantic Yards/Pacific Park buildings like 662 Pacific.

Presumably HPD will update the page; I queried them on Saturday but haven't heard back.