Housing is generally considered affordable when a household spends no more than 30% of its income on rent and utilities. Many programs use income limits based on area median income (AMI).

To calculate affordability, take your monthly wages (x) and divide by 3 (x / 3 = affordable monthly housing cost). For example, if you take home $2,500 a month, an affordable housing cost would be $833 ($2,500 / 3 = $833).