How is affordable housing defined?

Affordable housing is defined as housing that costs 30% or less of a person's gross income. This standard is widely used in housing policy and planning because it allows individuals and families to allocate their income towards housing while still having sufficient funds available for other essential expenses, such as food, healthcare, and transportation. The 30% threshold is seen as a rule of thumb in determining whether housing is affordable and is utilized by various governmental and nonprofit organizations to guide housing development and assistance programs. This definition aims to promote the economic well-being of residents and prevent housing-related financial strain.