With 2025 Area Median Income up 4.3%, more "low-income" households could earn six figures. New rent ceilings not listed yet.

Last week, the updated 2025 New York City Area Median Income (AMI) surfaced on the website (link) of the city Department of Housing Preservation and Development (HPD), with an increase of 4.3% over 2024 figures.

For example, a four-person moderate-income household, at 100% of AMI, could earn up to $162,000, up from $155,300. A single person could earn $113,400.

Screenshot from HPD. Annotation - household size

The 2024 figures represented an astounding rise of nearly 10% over 2023, with a four-person household at 100% of AMI earning $141,200. (It was $83,900 in 2014!) 

Under 2025 figures, a building with units at 130% of AMI--if grandfathered in under the old 421-a tax break--could rent to individuals earning up to $147,420.

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.

What about the rents?

As with last year, HPD hasn't yet updated the section regarding rents but rather lists 2024 rents. Last year it took about three weeks to update that section.

"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 now $90,720 for one person, $103,680 for two people, $116,640 for three people, and $129,600 for four people.

Under the new 485-x tax break, which is 40 years, new buildings at Atlantic Yards/Pacific Park would have to have at least 25% affordability, with the weighted average of all income bands not exceeding 60% of AMI, with no more than three income bands, and no income band exceeding 100% of AMI.

So that would mean an average--at least under 2025 numbers, which will rise--of $68,040 for individuals, $77,760 for two-person households, $87,480 for three, and $97,200 for four.

No wonder advocates have called for more deeply affordable units. (Keep in mind that, under promises made in 2005, 40% of the 2,250 Atlantic Yards affordable units were supposed to be low income: 10% between 30%-40% of AMI, and 30% between 40%-50% of AMI. The results, though, have been vastly skewed toward middle-income units.)

Note that last year HPD added a category of 20% AMI, since that Extremely Low Income sub-category contains a large number of New Yorkers. However, that category is not included in 2025.

2024 figures

2023 figures

Changes coming?

Last year I noted that 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 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.

It hasn't gotten very far.