TIP SHEET: FAQs About Key Terms

When people talk about Low-Income and Very Low-Income, what do they mean?

The term "low-income" can mean different things to different people. However, government and social service agencies use the above terms to refer to incomes that do not exceed 80% and 50%, respectively, of the area median income (AMI), with adjustments for family size. For instance, the AMI for fiscal year 1998 in Atlanta was $54,700 for a family of four (4). A family of four earning $43,760 or less would fall into the "low-income" category whereas an income of $27,350 or less would put that family in the "very low-income" category. These terms are often used as guidelines or requirements for subsidized programs and services.

What is Area Median Income?

Area Median Income refers to the middle or midpoint income for a particular area. The term is used to estimate the "average" income for a particular area.

What is Affordable Housing?

Affordable Housing is a vague term generally defined as housing where the occupant pays no more than 30% of gross income for total housing costs, including utilities.

What is Fair Market Rent (FMR)?

Fair Market Rent is an amount determined by the U.S. Dept. of Housing and Urban Development (HUD) to be the cost of modest, non-luxury rental units in a specific market area. Generally, an "affordable" rent is considered to be below the Fair Market Rent.

What is Cost Burden?

Cost Burden is the extent to which total housing costs, including utilities, exceed an acceptable percentage of gross income (see "Affordable Housing" above). Said another way, a cost burden greater than 30% is the extent to which housing costs, including utilities, exceed 30% of one's total income.

What is Public Housing?

Public Housing is housing which is operated by a Public Housing Authority.

What is a Public Housing Authority?

A Public Housing Authority is a public agency created by state or local government to finance or operate low-income housing.

I've heard that Section 8 helps low-income people with their rent. What is Section 8 and how can I apply?

The Section 8 Program is a federally funded rent subsidy program for lower income persons. The local housing authority (HA) receives funds from HUD to administer the Section 8 Program. The HA determines your eligibility for the program and the amount of the rental assistance payment. You are required to pay 30% of your adjusted income for rent. If the HA determines that your family is eligible, it will issue you a rental voucher or certificate. You are then responsible for finding a suitable rental unit of your own choice, provided that it meets minimum standards of health and safety, as determined by the HA. Contact your local HA for more information or to apply for the Section 8 program. For further assistance contact the HUD office nearest to you or visit their website for Section 8 Program information.

What is an SRO?

An SRO, or Single Room Occupancy, is a building in which tenants occupy single private spaces yet generally share cooking facilities and/or bathrooms.

What is Supported or Supportive Housing?

Supported Housing is that which has a "supportive" environment and includes a planned service component providing transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, or other services to assist individuals to continue living independently. May also be known as Assisted Housing/Living.

What is Transitional Housing?

Transitional Housing is that which assists people transition from homelessness to greater independence and self-sufficiency. Typically, a person/family who is homeless will move into transitional housing as part of a comprehensive program with self-sufficiency as the end goal. Transitional housing usually offers supportive services like job training/assistance, GED preparation/tutoring, child care services and/or referrals, budget/financial management workshops, etc. In most cases, persons/families pay a modest fee or percentage of their income for rent. Short-term housing may be 60-90 days while long-term housing may allow for residency up to 2 years.

Due to an unexpected crisis, I'm going to have a tough time paying my rent next month. How do I get help to pay my rent just this once?

Some government and social service organizations offer rental and utility assistance for individuals and families facing a financial hardship. However, their funds are often limited and they may not be able to assist individuals directly year-round. Should an organization or agency be unable to offer direct assistance, they may offer referrals to other organizations that can assist. Following are local agencies that offer rent and utility assistance when funds are available:

• Clayton County Community Service Authority - 404-363-0575
• DeKalb Economic Opportunity Authority - 404-292-1750
• Fulton Atlanta Community Action Authority - 404-810-0090
• Rockdale Economic Opportunity Authority - 770-760-8750

The above list of key terms is by no means exhaustive. As our series of Tip Sheets develops, we will include more terms as appropriate. "Stay tuned" for the upcoming FAQ Tip Sheet on "Steps to Buying a Home". Your questions and comments on this and other CHRC web pages are more than welcome. Thank you for your interest in the CHRC!