Measuring Affordability

What is AMI?

Area median income (AMI), sometimes referred to as Median Family Income (MFI), is the median income for all households in a specific geography. In Salt Lake City, AMI is based on households in the Salt Lake City metro area which includes Salt Lake and Tooele counties. The federal Department of Housing and Urban Development (HUD) uses data from the U.S. Census Bureau to determine AMI each year. In 2024, AMI for Salt Lake City is $115,500. AMI is adjusted for household size.

Percent of the area median income (% AMI) is the most common measure of affordability in the United States. A housing unit is typically considered “affordable” if a household at 80% AMI (annual income at or below $92,400) can spend 30% or less of their income on the total housing costs (rent/mortgage, utilities, and mandatory fees). A housing unit at 30% AMI is considered “deeply affordable.” When a household spends more than 30% of their income on housing costs, they are considered “cost-burdened.” Cost-burdened households often struggle to afford other necessities such as transportation, healthy food, or emergency expenses.

Example Occupations and Income Levels

The table below illustrates representative occupations and housing costs for an individual supporting a 4-person household at different income levels.

Level of Affordability	30% AMI / Extremely Low-Income	50% AMI / Very Low-Income	80% AMI / Low-Income	120% AMI / Moderate Income
Income	$0K—$34K	$35K—$57K	$58K—$92K	$93K—$138K
Maximum Affordable Monthly Housing Costs	$900	$1,400	$2,300	$3,500
Example Occupation / Average Wages	Food Server / $31,220 ($15/hr)	Kindergarten Teacher / $56,620 ($27/hr)	Nurse / $86,070 ($41/hr)	Software Developer / $120,910 ($58/hr)

Demolition Permits

Salt Lake City is committed to preserving affordable housing in our neighborhoods. In order to track the loss of affordable housing, the City requires applicants to record the Level of Affordability on a property prior to receiving a demolition permit. Use the calculator below to complete the Level of Affordability column in the Residential Demolition Verification Worksheet. If the Level of Affordability is less than 80%, it is considered Below Market Rate.

Affordability Restrictions

Salt Lake City is engaged in increasing the supply of affordable housing. The City invests in and incentivizes the construction of new affordable units and the transition of existing market rate housing to affordable rents. City investments include community development grants and RDA loans. Incentives include fee waivers, development score reviews, and zoning incentives.

To ensure housing costs remain affordable, developers receiving an investment or incentive sign an agreement that includes a “deed restriction.” Deed restrictions are recorded on a property and define the level of affordability, which units will be affordable, and how long units will remain affordable.

Use the calculator below to see how different affordability levels impact the maximum rent that can be charged for a unit. The calculator is provided for illustrative purposes only. Work with city staff to determine how affordability restrictions apply to your project.

Additional Information

You can learn more about the City’s efforts to preserve and increase the supply of affordable housing at the City’s Housing SLC webpage.